Trade between Korea and China tops China-Japan

By Choi Sung-jin

Trade between Korea and China exceeded that between China and Japan in the fourth quarter of last year for the first time, statistics show.

According to the Korea International Trade Association, Korea’s exports and imports to and from China totaled $75.6 billion in the final three months of 2015, $3.9 billion more than the $71.7 billion between China and Japan. “Korea is now China’s second-largest trading partner, following the United States,” it said.

Korea went ahead of Japan in exports to China in 2013, but this is the first time two-way trade volume topped Japan’s.

“From this year on, Korean businesses’ trade with their Chinese counterparts will continue to be more than Japan’s,” a Korean trader said. Korea’s emergence as the second-largest trader was significant because it came amid China’s economic slowdown, he added.

Korea’s exports to China fell 8.2 percent last year, but the decline was far less than the overall shipment drop of 14.1 percent by global exporters. Korea’s share of China’s import market grew from 9 percent to 10.4 percent, while Japan’s share dropped from 12.2 percent to 8.5 percent.

“Because there are few other markets that can replace China, Korean exporters will need to step up their activities in the world’s second-largest economy, especially making the most of the free trade agreement between the two countries,” said Choi Yong-min, head of KITA’s Beijing office.