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China unveils 1st industrial park since FTA with ROK

TaiShang

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China unveils 1st industrial park since FTA with ROK
June 3, 2015

China unveiled a blueprint for an industrial park in east China's Yantai City on Wednesday to facilitate investment by enterprises from the Republic of Korea (ROK).

It is the first step in the country's greater ambition to promote Sino-ROK industrial parks following the signing of a free trade agreement (FTA) between the two sides on Monday.

The city has started construction and will encourage cooperation in high-tech equipment manufacturing, new energy, electronic information and oceanic engineering, as well as the modern tertiary sector, Yang Li, deputy mayor of the city, said during a press briefing held in Beijing.

Yang hopes the industrial park will provide footing for South Korean companies to invest in China and vowed to build the area into a model of industrial cooperation between the two countries and a major logistics hub of Northeast Asia.

The industrial park will cooperate with Saemangeum economic zone in the ROK to facilitate mutual development.

Yantai, one of 10 major ports in China, boasts close economic ties with the ROK thanks to its regional advantage. Its trade with the country reached 10.97 billion U.S. dollars in 2014, accounting for 3.7 percent of China's total.

China's Ministry of Commerce has promised to promote the building of industrial parks in China as part of efforts to implement the FTA and boost Sino-ROK trade.

In addition to Yantai, the governments of Changzhou, Weifang, Weihai and Wenzhou also intend to set up their own industrial parks.
 
This is something like the China-Singapore Suzhou Industrial Park? I hope there is less teething problems compared to the China-Singapore venture & get up-to-speed fast.
 
This is something like the China-Singapore Suzhou Industrial Park? I hope there is less teething problems compared to the China-Singapore venture & get up-to-speed fast.

More info which hopefully sheds further light on the issue.

FTA experience to power new industrial park linking Yantai, S. Korea
Updated: 2015-06-04 09:18
By Zhong Nan

http://www.bshare.cn/share
The China-South Korea Industrial Park in Yantai, Shandong province, will take a leaf from the practices used in the country's four pilot free trade zones, including Shanghai and Tianjin, to develop e-commerce, healthcare and high-end maritime equipment manufacturing sectors to fuel growth.

Many of these opportunities come after China signed its largest bilateral free trade agreement in terms of volume with South Korea on Monday, which focuses on 17 areas, including trade in goods and services, healthcare, entertainment, investment and trade rules, as well as e-commerce and government procurement.

Located in East China's Shandong province and geographically close to South Korea, the China-South Korea Industrial Park has helped the city attract $5.3 billion of South Korean investment in 3,551 projects, mainly focusing on construction machinery, vehicle and other high-end manufacturing, as well as energy-saving and biotechnology sectors.

Giant South Korean companies such as LG Corp, Doosan Heavy Industries and Construction Co, POSCO Group and Hyundai Motor Co have invested in more than 2,000 projects in the park. Each project is said to have received investment to the tune of $10 million.

Yang Li, Yantai's vice-mayor, said successful experiences such as the negative list system, faster customs clearance procedures and easier market access for foreign companies gained from the four pilot free trade zones will be adequately used in Yantai's China-South Korea Industrial Park to increase both business and management flexibility.

"The development pattern of the park will shift from individual manufacturing projects to industrial chains to further improve the earnings ability of Chinese and South Korean companies, as well as joint ventures," said Yang.

Supported by the 1 billion yuan ($161 million) development fund of China-South Korea Industrial Park, more and more South Korean companies are keen to form joint ventures with local companies to expand their footprint, as Chinese companies are proficient in dealing with domestic markets.

Machinery manufacturing, electronic information, smart phones, high-end vessels and liquid crystal display will be treated as priority industries by both sides to build industrial chains over the next five years.

Two-way trade between Yantai and South Korea reached $10.97 billion in 2014, up 20.2 percent year-on-year. Meanwhile, the city received $200 million worth of investment from South Korea, a 31 percent increase from a year earlier.

Under the new FTA, China will remove tariffs on 91 percent of all products from South Korea within 20 years, while South Korea will eliminate tariffs on 92 percent of all goods in the other direction.

Yu Dong, director of Yantai's commerce bureau, said the China-South Korea FTA will provide a platform for the both countries to develop the service sector. Doosan Heavy Industries and Construction Co and Hyundai Motor Co have already established research and development centers in the China-South Korea Industrial Park in Yantai.

Financial institutions including Hana Bank and Industrial Bank of Korea also opened branches in the city. Hana Bank and Korea Exchange Bank launched a joint yuan deposit product with a maturity of six months by the end of last year to diversify their service categories. The deposit rate was more than 3 percent.
 
I like this - shift from individual manufacturing projects to industrial chains...

Also very smart to choose Yantai as it is just opposite Korea.
 
I like this - shift from individual manufacturing projects to industrial chains...

Also very smart to choose Yantai as it is just opposite Korea.

Both Yantai and Weihai,and to a lesser extent Qingdao,are flooded with South Koreans。

At its peak the population of South Koreans in Weihai was said to outnumber the locals。:D
 
Both Yantai and Weihai,and to a lesser extent Qingdao,are flooded with South Koreans。

At its peak the population of South Koreans in Weihai was said to outnumber the locals。:D

Maybe next time we speak, must end our sentences with 'sumnida.' lol.
 
FTA a lifeline for troubled S.Korean SMEs
By Zhang Huizhi Source:Global Times Published: 2015-6-4

Cut in import tariffs offers huge opportunity
075729f4-e174-4491-8e44-3cc3e0d34ee1.jpeg

Illustration: Peter C. Espina/GT



The free trade agreement (FTA) between China and South Korea is expected to be implemented in late 2015 or early 2016. The agreement is China's largest FTA so far, and is expected to stimulate economic growth in both countries, benefiting small and medium-sized enterprises (SMEs) in South Korea and offering opportunities for China to upgrade its own industries.

South Korea's economy is still growing, but the country is facing challenges. According to media reports, after several months of gloom in its export sector, South Korea's central bank announced in April a cut in its forecast for the country's 2015 economic growth from 3.4 percent to 3.1 percent.

One of the challenges facing South Korea's economy is the operating difficulties for its SMEs. Compared with relatively good performance by its large companies, the country's SMEs are struggling. However, the China-South Korea FTA is likely to help these companies gain ground in the Chinese market by removing or cutting import tariffs on goods they produce.

Under the FTA, China will eliminate tariffs on 91 percent of products imported from South Korea.

Large firms are able to move their production from South Korea to overseas consumer markets in order to evade import tariffs in those markets, but SMEs generally do not have this option, so the FTA is likely to be of particular importance for them.

Thanks to the cut in tariffs and large demand in the Chinese market, SMEs that focus on producing household electrical appliances, cosmetics and daily consumer goods may benefit the most. Shen Danyang, spokesman for China's Ministry of Commerce, said on Tuesday that the current 15 percent import tariffs on some household electrical appliances - including refrigerators, electric ovens, rice cookers and microwave ovens - will be completely removed in the next 10 years.

The tariff cut means that prices of these goods will decline in the Chinese market, spurring sales and boosting South Korea's economy by increasing exports to China.

According to Shen, the China-South Korea FTA will help South Korea's GDP grow by about 0.97 percentage points.

As for China, the agreement will allow China's GDP to grow by about 0.34 percentage points, but the opportunities it is expected to offer in terms of industrial upgrading are set to be more important.

The tariff cuts will raise the competitiveness in China of consumer goods from South Korea, exposing Chinese firms to greater external competition, and this will spur traditional manufacturing firms to pursue innovations in their business.

Besides competition, more economic cooperation may also be introduced. The China-South Korea FTA covers 17 areas, including trade in goods and services, as well as investment and trade rules. Measures such as reducing investment barriers and simplifying trade rules will help to promote cooperation on technology and improve the development of Chinese high-tech manufacturing and service sectors.

For instance, South Korea's companies are ahead of Chinese firms in energy-efficient and environmental technologies and there is considerable potential in this field for cooperation.

After the implementation of the FTA, the two countries will also continue negotiations on further liberalized trade in services and bilateral investment.

As for the international industrial chain in Asia, the China-South Korea FTA will only have a limited positive effect on it in the short term. But the agreement will help with other ongoing negotiations over FTAs among Asian countries and regions.

The FTA deal between China and South Korea is likely to help push forward the establishment of a free trade area between China, South Korea and Japan, and it could benefit other regional economic cooperation plans such as the Regional Comprehensive Economic Partnership (RCEP), a multilateral FTA that will include China, South Korea, Japan, India, Australia, New Zealand and the 10 members of the Association of Southeast Asian Nations.
 
China unveils 1st industrial park since FTA with ROK
June 3, 2015

China unveiled a blueprint for an industrial park in east China's Yantai City on Wednesday to facilitate investment by enterprises from the Republic of Korea (ROK).

It is the first step in the country's greater ambition to promote Sino-ROK industrial parks following the signing of a free trade agreement (FTA) between the two sides on Monday.

The city has started construction and will encourage cooperation in high-tech equipment manufacturing, new energy, electronic information and oceanic engineering, as well as the modern tertiary sector, Yang Li, deputy mayor of the city, said during a press briefing held in Beijing.

Yang hopes the industrial park will provide footing for South Korean companies to invest in China and vowed to build the area into a model of industrial cooperation between the two countries and a major logistics hub of Northeast Asia.

The industrial park will cooperate with Saemangeum economic zone in the ROK to facilitate mutual development.

Yantai, one of 10 major ports in China, boasts close economic ties with the ROK thanks to its regional advantage. Its trade with the country reached 10.97 billion U.S. dollars in 2014, accounting for 3.7 percent of China's total.

China's Ministry of Commerce has promised to promote the building of industrial parks in China as part of efforts to implement the FTA and boost Sino-ROK trade.

In addition to Yantai, the governments of Changzhou, Weifang, Weihai and Wenzhou also intend to set up their own industrial parks.

You should post some pics & don't forget to tag me
 
Anyeong Ha Seyo!

South Korea is so small, it's population same as an average Chinese province, and country size like 1% of China.

South Korea is so big, 13th largest by gross domestic production, 6th in forex reserve strength, 5th in industrialization, 1st in industrial robotics density, one of Asia's 6 advanced countries, leader in many techs and industries.

Wish China and Korea can be further integrated, pool resources together and make a better tomorrow!
 
Anyeong Ha Seyo!

South Korea is so small, it's population same as an average Chinese province, and country size like 1% of China.

South Korea is so big, 13th largest by gross domestic production, 6th in forex reserve strength, 5th in industrialization, 1st in industrial robotics density, one of Asia's 6 advanced countries, leader in many techs and industries.

Wish China and Korea can be further integrated, pool resources together and make a better tomorrow!
SK's strategy is to make China one indispensable part of her domestic market, how wise it is!
 
SK's strategy is to make China one indispensable part of her domestic market, how wise it is!


Yes, wise, and visionary.

After years of lagging behind her main rival Taiwan in tapping China both as a market and as a supply chain, now SK is in an advantageous position by signing FTA ahead of Taiwan.

Other than Taiwan, SK is also in direct competition with Japan (on electronics, robotics, heavy industries and infrastructure), and to a lesser extent Germany (on machine tools, electro-mechanical equipments). Through closer integration with Chinese market, and China's massive industrial base, SK can gain additional competitive advantage.
 
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Yes, wise, and visionary.

After years of lagging behind her main rival Taiwan in tapping China both as a market and as a supply chain, now SK is in an advantageous position by signing FTA ahead of Taiwan.
@TaiShang 只看到麗文正經話有評論啊,其他節目繼續炒KMT的總統人選問題。:(
 
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