China, South Korea FTA to accelerate e-business

"Will Korean commodity prices fall?" "What trade can we do with Korea?" he said. "After the China-ROK FTA landed, entrepreneurs were more interested in the business opportunities that followed." Experts believe that South Korea's mobile phone, television and other commodity prices are expected to decline in the future.

25th evening, the Ministry of Commerce website shows that China and South Korea have completed the FTA (Free Trade Agreement) all the text of the initial, the contents of the agreement to confirm, so far, the FTA negotiations between China and South Korea have been completed. "FTA helps to promote commodity trading and activation of investment, especially in China through the negative inventory management model to open the service market to Korea, will greatly promote South Korea's investment in China." Tri Jong Min, chief representative of the Korea Trade Association's Beijing representative office, said in an interview with the first financial journal yesterday.

In the interview, some of the integrated circuit companies to reporters that the agreement in the medium and long term will be more favorable to the enterprise, especially in the face of consumer products will likely usher in price reduction trend. Tri Jong Min to reporters that the future access to China's circulation and medical and it areas of Korean enterprises will be greatly increased.

Long-term effects are more pronounced

Related data statistics, China and South Korea import and export of the top ten products, China's exports to South Korea and imports from South Korea have six types of products are the same, respectively, telephones, video equipment, integrated circuits, automatic data processing equipment and its components, liquid crystal devices and other optical instruments and appliances, diodes, transistors and similar semiconductor devices, Oil and oil extracted from bitumen minerals (excluding crude oil), waste oils, six of these products and accounted for 44.83% of the total trade in China and South Korea.

"In the long run, the South Korea-China free Trade agreement can reduce NON-TARIFF barriers and simplify the declaration process, which will help expand exports and trading volumes to China," he said. Samsung Motor related director Liang Jun told reporters that companies are also studying the content of trade agreements.

Samsung Motor is South Korea's Samsung Group subsidiary, mainly engaged in consumer electronics, semiconductor manufacturing, panel production, home appliances manufacturing business, currently has millet and oppo and other Chinese customers.

Liang Jun The list of tariffs on products in the two agreements provided to journalists, China-Korea FTA (starting from 2015), the cable communication components for 2% (5 years removal), refrigerator/air-conditioning for 15% (10 years), television, photographic equipment components 12% (15 years).

He confessed that future products from South Korea may be more favorable, but since many factories in China earlier signed the Information Technology product Agreement (ITA), so the South Korea-China free Trade agreement will not have a direct impact in the short term, but as companies still very much look forward to the long-term effect of the agreement.

The investment effect looms

Tri Jong Min told reporters that in the long run, the South Korea-China FTA will help good Chinese enterprises to enter the Korean market more easily, Chinese companies investing in Korea may export duty-free products to the United States and Europe.

South Korea Trade Association Beijing Branch Data Statistics, in 2014, the actual investment of Korean enterprises in China rose 29.7%, to 3.97 billion U.S. dollars, the highest in nearly 8 years. As a result, the share of foreign investment attracted by the Korean capital in China increased from 2.6% in 2013 to 3.3% in 2014. By the end of 2014, the investment of Korean enterprises in China amounted to 59.82 billion U.S. dollars.

Samsung Electric Market in charge of the reporter said that the Chinese market for mobile phone parts and the overall solution is a great demand for the 2013 Samsung Motor China market occupies Samsung's share of 7%~8%, and the 2014 Samsung Motors in China market share accounted for about 15% of the entire company, 2015 in China the overall target of 2 trillion won (about 11 billion yuan).

The conclusion of substantive negotiations between China and South Korea from the trade area also caused great repercussions across the strait. Taiwan's relevant departments statistics, China-ROK FTA after the entry into force, Taiwan's GDP will fall by 0.5%, total export reduction of 1.34%, 3.75 billion U.S. dollars, reducing output value of 0.98%, 8.9 billion U.S. dollars, of which 24.7%, 38.6 billion U.S. dollars industrial products due to higher tariffs are threatened or impact will be greater, especially steel , tool machines, panels and other industries.

Taiwan's Hon Hai Group chairman, Terry Gou, said in an interview with a Taiwanese television program: "People have negotiated the conditions of China-Korea FTA and our company, customers always look seven or eight years later, Taiwan time is not much." ”