It has been found that the share of products exported from South Korea to China fell below 10% in the Chinese import market this year. This has to do with the Chinese government’s policy for a change in industrial structure, efforts for the growth of domestic industrial sectors, and economic retaliation following THAAD deployment in South Korea.
According to industry sources such as the Korea Center for International Finance (KCIF) and statistical data provider CEIC, such products accounted for 9.4% of China’s total imports for the first eight months of this year. The ratio reached 10.4% in 2015, breaking the 10% mark for the first time, and remained above 10% last year. However, this is unlikely to be repeated this year.
Likewise, the ratio of South Korea’s exports to China to South Korea’s total exports fell from 25.1% to 23.5% between last year and the first eight months of this year.
The decline in the ratio of South Korean products in the Chinese import market can be attributed to various factors, including the Chinese government’s attempt to change the local economic structure by increasing domestic procurement and decreasing its dependence on processing trade.