Experts Raise Trade Figures with S. KoreaTrade experts have improved their outlook for this year's bilateral trade between China and the Republic of Korea, according to Businesss Weekly.Xu Changwen, director of the Asian and African Studies Department of the China Academy of International Trade and Economic Co-operation, said he predicted a US$28 billion trade volume between China and South Korea for this year at the beginning of the year. "It's very likely that the volume will get to US$30 billion, judging from trade between the two countries during the first half of this year,'' Xu told Business Weekly. Bilateral trade between China and South Korea rose 45.3 per cent from the same period of last year to US$16.1 billion, according to statistics from the General Administration of Customs. Rapid growth of the two economies has contributed to booming trade, said experts. China reported economic growth of 8.2 per cent during the first half year and the South Korean economy grew strongly at at least 8 per cent for the period. "The two strong economies were complementary with mutual export resources and marketable imports,'' said Xu. The won, South Korea's currency, was devalued a little during the first half of the year which made its products slightly more competitive on the China market. China imported US$10.8 billion worth of products from South Korea during the first six months, up 38.7 per cent from comparable months of last year. China's exports to South Korea surged 60.7 per cent from the same period of last year to US$5.3 billion during January-June. Price surges helped to push up China's export value to South Korea. Official statistics indicate the average price of South Korean imports increased 10 per cent from the start of this year. Xu said China's trade deficit with South Korea continued to expand. It rose US$5.5 billion during the first six months and is expected to be US$10 billion this year, said Xu Changwen. China has generally imported more from South Korea than it has exported to it since the two countries established diplomatic ties in 1992. The gap between China's imports from and exports to South Korea has been widening year by year too. It came to US$43.7 billion at the end of June, according to official statistics. Xu pointed out that a large amount of South Korean investment in China boosted China's imports of materials and parts from South Korea. But the widening gap and long-term deficit is likely to do harm to trade and economic co-operation between the two countries. As a developing country which is still short of foreign exchange, expansion in China's purchase of products from other countries depends on the country's exports, which brings it foreign exchange. Xu suggested that South Korea relax its controls over imports of China's agricultural and mineral products. Chinese companies should also diversify their products and improve their quality and design to interest South Korean companies and consumers. Xu said that as China and South Korea expand the scope and scale of their trade and economic co-operation, it's normal for the two countries to have trade frictions. This was echoed by Zhang Hanling, a trade professor with the University of International Trade and Business. It's very important that trade disputes are solved in a calm and rational way, through negotiations and without negative influences on political and economic relations between the two countries, said Zhang. South Korea is China's third-largest trade partner and vice versa. Trade between China and South Korea increased at a faster rate than China's overall foreign trade, which rose 37.3 per cent during the first six months. |
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