A slowness in Korea’s exports to China is becoming prolonged as they contracted for three years in a row.
"Until 2014, there had been a boom in Korea's exports and imports as the trade between Korea and China hit over US$1 trillion. But since 2015, the bilateral trade has been on the skids," said the Korea Economic Research Institute (KERI) in its report entitled “Corporate Strategy and Policies for Elimination of Korean Export’s Reliance on China.”
"In particular, Korea’s dependence on China, the largest importer of Korean goods, is still high, while trade with China has been shrinking year by year. So, experts are concerned that Korea’s export engine may lose its power and seize up,” the report added.
In fact, Korea's exports to and imports from China which amounted to US$18.5 billion and US$12.8 billion in 2000, respectively, grew to US$116.8 billion and US$71.6 billion in 2010, respectively. The two volumes hit US$145.3 billion and US$90.1 billion in 2014, respectively.
However, the year-on-year growth rate of Korea exports to China has been negative for three consecutive years since -0.4% in 2014. In 2015, the growth rate declined 9.3% year on year. In 2016, the rate shrank 5.6% from a year before.