Structural Changes in China's Import Market for Domestic Demand and Implications
5 Pages Posted: 1 Nov 2016 Last revised: 1 Dec 2016
Date Written: October 26, 2016
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
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