Cooperation blossoms since relations established in 1992
China-South Korea bilateral trade was nearly $300 billion in 2014, up 60 times since diplomatic relations were established in 1992, the National Development and Reform Commission (NDRC) said in a statement on its website on Tuesday.
The huge rise was mainly due to the advantages of proximity and the benefits of industrial cooperation, Qiang Yongchang, a professor with the School of Economics at Fudan University, told the Global Times on Tuesday.
"These countries are neighbors and have convenient transportation links. Also, South Korea is quite good at some industries such as electronics, services, cosmetic surgery and entertainment, in which Chinese companies can seek more opportunities," Qiang said.
Chinese and South Korean leaders reached economic and trade agreements during Chinese Premier Li Keqiang's visit to South Korea, indicating both sides' determination to strengthen economic ties.
Li and South Korean President Park Geun-hye signed a memorandum of understanding on Saturday on cooperation involving China's "Belt and Road" initiative and South Korea's Eurasia Initiative, according to the NDRC statement.
The "Belt and Road" initiative refers to the Silk Road Economic Belt and the 21st Century Maritime Silk Road, which were put forward by President Xi Jinping in 2013.
The two initiatives have some similarities, Bai Ming, a research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Tuesday.
China's initiative aims to aid connectivity in the region by developing infrastructure and economic projects, while South Korea's plan aims to do the same by overcoming certain barriers, Bai said.
China is currently the largest destination for products and outbound investment from South Korea, while South Korea is China's third-largest trade partner, the Xinhua News Agency reported in September.
The two countries officially signed a free trade agreement (FTA) on June 1, which is expected to spur bilateral trade.
"The FTA may be in effect by the end of this year with the efforts of both countries," Bai said, noting that Chinese enterprises should focus on industrial upgrading as they face more competition after the FTA takes effect.
Also, the two countries signed a memorandum of understanding on October 31 to link China's "Made in China 2025" initiative with South Korea's "Industry Innovation Movement 3.0," so as to have industrial cooperation in sectors like robotics, manufacturing, "green" factories and industrial design, according to a post on the website of the Ministry of Industry and Information Technology on Tuesday.
Both sides will seek more opportunities, especially in industrial upgrading, Bai noted. But he said that cooperation will have a limited impact on the problem of overcapacity, which has persisted in Chinese manufacturing for years.
