President Xi's Visit to South Korea: Speeding up the FTA Talks

[Edison Chen]

It's for TaiShang posting, high IQ

You little retard, head burned by the sun? then why quote me?

 

[Pakistanisage]

We wish both our friendly countries best of luck.

 

[TaiShang]

You expect too much on a trade agreement. That's economic not political matter.
By signing a FTA, you must give for receive ... not warm or cold but how open your market is for the partner.

That's obvious, isn't it? Give and take. That's the nature of any exchanges of commodity, ideally. In fact, I favor FTAs remaining FTAs; no political bickering; no turning, for example TPP, into a would-be geopolitical blackmailing device for some and against some.

I do value trade and, oftentimes, China has the upperhand in terms of production and lojistics. Also, for regional integration, I see FTAs a good start to achieve complex interdependence.

 

[Aepsilons]

 

[xunzi]

With all these modern geopolitics, foreign invasion, interest, people forget that Korea-China were once close ally. In fact, Korea is the most consistent ally of China throughout history.

 

[cirr]

FTA so interesting, ASEAN agreed FTA with not only Japan, but SK, China, New Zealand, Australia, India ...
It doesnt reflect the positive image or anything, it show what items and when to be Zero % in tariff



Does it relate to the topic ?
I don't know well on growing fruits in Vietnam.
Prices of fruit in Vietnam always cheap, and good flavor.
They always could choose growing what fruit give them the best profit.

As what I observed recently, Vietnam focusing in improve the marketing and maintain the quality of fruit and seafood for longer based on Japan technology. By doing so, their products could reach higher price market than China.
For example litchi ( lychee ), now Vietnam exported to not only China but many other countries.

Just making an inquiry。

Report back if you have any additional info。

PS I hear that 90% of Vietnames fruits exports are headed for China。So good luck with finding new customers。

 

[That Guy]

This is not necessarily anti-DPRK. China serves the right to do business with everybody it wishes, regardless of how they feel about each other. Just as China signs deals with India while having good relationship with Pakistan.

I oppose to portray Chinese actions to be pro or anti since China has non-interference policy. So, the DPRK can be sure that China will not interfere in Korea's domestic issues or foreign policy decision with respect to the DPRK. Nor would Korea let its own affairs be interfered by anybody.

China-DPRK cross-border trade is going on as usual, by the way.

I think an official policy of non-interference and the ground reality are completely different. China has a vested interest in the DPRK, and if the DPRK were to collapse, I'd have no doubts that China would send in it's forces to protect it's vital interests. In reality, China is already deeply involved in ROK-DPRK affairs, as China is the only country in the world that is keeping the DPRK government alive. If China were to close down it's border with DPRK, I have no doubt that DPRK would collapse within months.

I also have no doubt that this recent visit is to send a warning to the North that China will not tolerate the North's recent bad behavior.

Remember, there is no such thing as a coincidence in international politics.

 

[Nan Yang]

In reality, China is already deeply involved in ROK-DPRK affairs, as China is the only country in the world that is keeping the DPRK government alive. If China were to close down it's border with DPRK, I have no doubt that DPRK would collapse within months.
.

Not entirely true. South Korea is also helping keeping N Korea alive. S Korea also do not want to be flooded with staving N Korean if N Korea collapse.

Kaesong Industrial Region
Kaesong Industrial Region - Wikipedia, the free encyclopedia

Quote
Park Suhk Sam, senior economist at the Bank of Korea, predicted the industrial zone could create 725,000 jobs and generate $500 million in annual wage income for the North Korean economy by 2012. Five years later, another $1.78 billion would be earned from annual corporate taxes levied on South Korean companies participating in the industrial project.[7]

 

[TaiShang]

Nation, let's do some more business.


China, South Korea agree to open yuan clearing service in Seoul

China and South Korea have signed a deal to launch a currency clearing service in Seoul for the Chinese yuan.

The People’s Bank of China and the Bank of Korea signed a memorandum of understanding during Chinese President Xi Jinping’s state visit to South Korea. It aims to make trade and investment easier by reducing transaction costs and exchange rate risks. It could also push for the use of the yuan by banks and businesses in international transaction.

Both sides agreed to establish a direct trading mechanism between the Chinese Yuan and the South Korean Won. China’s central bank says that it has authorized the Bank of Communications to be the clearing bank in Seoul.

"It will help to promote cooperation in trade and financing between China and South Korea, and it will also be beneficial to the use of the yuan in international transactions. At the same time, it can make financial agencies better serve the real economy," said Niu Ximing, president of Bank of Communications.

"A number of deals were signed during President Xi’s visit, but the direct trading mechanism between the RMB and Won is one of the most important ones. 25-percent of South Korea’s international trade is with China. The clearance deal will facilitate financial settlements and encourage Chinese investment in South Korea," said Yong Park Tae, executive VP of Woori Bank.

***
Xi encourages more S. Korean investment in China
Zhang Pengfei 丨Xinhua

SEOUL, July 4 (Xinhua) -- Visiting Chinese President Xi Jinping on Friday voiced support for South Korean businesses to expand investment in China, as the two Asian neighbors are seeking stronger economic ties.

Chinese President Xi Jinping speaks at a forum on China-South Korea economic and trade cooperation in Seoul, capital of South Korea, July 4, 2014. Xi Jinping and his South Korean counterpart Park Geun-hye attended the forum jointly on Friday.(Xinhua/Lan Hongguang)

"The governments and businesses of the two countries should seize the opportunity and make concerted efforts to constantly further cooperation in economy and trade," Xi said when addressing a forum on bilateral economic and trade cooperation in Seoul.

Xi proposed that the two countries take proactive measures to establish a bilateral free trade area at an early date, strengthen coordination in macro-economic policy, boost trade and investment facilitation and financial cooperation as well as jointly oppose trade protectionism.

The Chinese president also encouraged South Korean enterprises to participate in the construction of the China (Shanghai) Pilot Free Trade Zone, inaugurated last September as part of the country's ambitious reform strategy.

South Korean President Park Geun-hye said she envisioned a bilateral free trade area to promote cooperation in high-end industries, financial service industry, medical treatment and common research and development.

South Korea supports its enterprises in expanding investment in China, especially in China's central and western regions, while welcoming more Chinese investment in South Korea, Park said.

"The South Korean side is willing to actively participate in China's Silk Road Economic Belt initiative," Park said.

The proposal to build a Silk Road Economic Belt and a 21st-century maritime Silk Road, known as the "One Belt and One Road," were put forth by President Xi during visits to Central Asia and Southeast Asia in 2013.

Xi, who started the two-day South Korea trip Thursday, also visited an exhibition of Samsung and LG products on Friday, expressing hopes that the two South Korean industrial giants can continue to enhance exchanges and cooperation with China.

China and South Korea have witnessed rapid development of their relationship since the two countries forged diplomatic ties 22 years ago.

Trade between the two countries surpassed 270 billion U.S. dollars in 2013, an increase of 7 percent year on year, equaling South Korea's trade volume with the United States and Japan combined.

China is South Korea's No.1 trading partner, largest export destination and import source, and No.1 destination of overseas investment. South Korea is China's third largest trading partner based on the 2013 data and fifth largest source of foreign direct investment.

 

[That Guy]

Not entirely true. South Korea is also helping keeping N Korea alive. S Korea also do not want to be flooded with staving N Korean if N Korea collapse.

Kaesong Industrial Region
Kaesong Industrial Region - Wikipedia, the free encyclopedia

Quote
Park Suhk Sam, senior economist at the Bank of Korea, predicted the industrial zone could create 725,000 jobs and generate $500 million in annual wage income for the North Korean economy by 2012. Five years later, another $1.78 billion would be earned from annual corporate taxes levied on South Korean companies participating in the industrial project.[7]

I know about the industrial park, but it doesn't really change my point in the long run. The only thing it does is change the 1 nation to 2 nations.

 

[TaiShang]

Good deal, if realized. Would like to see Korean companies drive out Western cosmetic brands.

China-S Korea FTA: cosmetics brands deal possible

China and South Korea began discussions on a free trade pact in May 2012. Since then, there have been 11 rounds of talks. And the visit of Chinese President Xi Jinping to South Korea has provided a greater momentum for the 12th round later this month.

Under current customs regulations, Korean cosmetic products face tariffs as high as 130% when exported to China, but a trade deal could lower that to virtually zero.

Whether it’s eye serums, powders, moisturizers, or BB cream—South Korean cosmetics might be the next big thing to hit China.

Cosmetics firms like Amore Pacific, which markets brands such as Laneige and Mamonde, are closely watching Chinese President Xi Jinping’s visit to South Korea this week for signs of progress on a pending bilateral free trade deal.

Under current customs regulations, Korean cosmetic products face tariffs as high as 130% when exported to China, but a trade deal could lower that to virtually zero.

"Invisible barriers may have existed for South Korea’s companies in a protectionist Chinese market, but I anticipate a major easing of those obstacles if the S. Korea-China FTA is signed." Hong Chang-Pyo, Director fo S. Kroea Trade-Investment Promotion Agency said.

Last year, more than 4.3 million Chinese tourists visited South Korea, and many of them purchased cosmetics at stores like this one here in the heart of Seoul. Many Korean businesses see the potential in offering goods at competitive prices directly to Chinese consumers. That’s why a trade deal would be welcome news for cosmetic brands looking to expand in the Chinese market.

"We can anticipate positive effects from the results of S. Korea-China FTA negotiations, but currently we will continue to focus on expanding our business in China by offering optimal products and services to our Chinese customers." Kim Seung-Hwan, Senior Vice President of Amore Pacific said.

China is South Korea’s largest trading partner, while South Korea is the third-largest export market for Chinese goods. Experts say a free trade deal would also demonstrate how closely relations have developed beyond simple economics.

"I think there’s political symbolism to the FTA and some ways it might outweigh the economic significance. Both sides are negotiating to make sure that their vulnerabilities are protected. So in the end, the trade agreement itself may not have a huge impact but again, the trade investment flow is going to continue to grow between the two countries regardless." Professor John Delury, Yonsei University said.

But until a free trade deal goes into effect, Chinese consumers will have to wait to enjoy Korean cosmetic and other products at "face" value.