China-ROK Free Trade Deal Urged
Persuaded by the fall in trade existing between China along with South Korea in the midst of the global recession, representatives from both nations committed to expedite negotiations in favor of free trade agreement. They also promised to focus on numerous issues like cooperation in various sectors, and creation and manufacturing of new industries like hi-tech and green energy.
China became the leading beneficiary of South Korea’s direct investment in the year 1992. South Korea has been vigorously investing in China for the last six years. At the end of 2008, South Korea had invested 41.9 billion dollars contributing 70% to China’s industrialized sector. 200 billion dollars is their trade target for 2010, but their goal now seems to be improbable. A sudden drop in their trade this year has pushed these nations to go for free trade contract.
“The establishment of a free trade agreement among China, South Korea and Japan should be examined as soon as possible. Strengthened relations among the three Asian nations would invigorate the world economy” (Chen Deming)
In 2004, South Korea in conjunction with China initiated a study on South Korea-China free trade which showed how industries from both nations were complementary to each other and that the success of each nation’s economy lies in free trade. A free trade between nations like South Korea with China can never exist unless and until each nation diminish all negative factors arising domestically or beyond.
