Structural Changes in China's Import Market for Domestic Demand and Implications

5 Pages Posted: 1 Nov 2016 Last revised: 1 Dec 2016

Jihyun Jung

Korea Institute for International Economic Policy

Date Written: October 26, 2016

Abstract

This study aims to seek the countermeasures of Korea by analyzing the structural changes in China's import market for domestic demand and Korea's export to China. In particular, the characteristics of the import market for domestic demand was analyzed by processing phase and industry.

China's import structure is shifting focus to general trade (import for domestic demand), general trade import has switched to a structure focused on primary commodities since 2010, while total import is still focused on intermediate goods. And the manufacturing industry plays a crucial role, but has recently been witnessing a rapid decline in share.

Korea's export to China is still defined by a structure of export-oriented processing trade. The structure of Korea's general trade export to China is still concentrated on intermediate goods and the top two manufacturing industries.

Therefore, exports to China should likewise undergo a structural change in accordance with the evolving needs of China's domestic market, especially Korea should raise its export of intermediate goods (parts and components) and consumer goods to the Chinese domestic market.

Keywords: China's Import for Domestic Demand, Korea's export to China, Trade Structure Changes

Suggested Citation

Jung, Jihyun, Structural Changes in China's Import Market for Domestic Demand and Implications (October 26, 2016). KIEP Research Paper World Economy Brief No.16-27. Available at SSRN: https://ssrn.com/abstract=2862286

Jihyun Jung (Contact Author)

Korea Institute for International Economic Policy ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

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