Over the past 24 years since the establishment of diplomatic relations between China and South Korea, trade and investment between the two countries have undergone many changes. The official implementation of the China-South Korea Free Trade Agreement (FTA) on December 20, 2015 has brought corporate cooperation between the two countries to a new level. At the moment, what new opportunities are brought to Korean companies by China, which is vigorously promoting “Internet+, “Made in China 2025”, and economic transformation and upgrading? South Korea, which is accelerating its development, will welcome other Chinese companies to invest and cooperate in South Korea. Will the cooperation between China and South Korea in IT and manufacturing reproduce a new model? On these issues, a few days ago, “China Electronics News” reporter interviewed Hong Zhang, deputy general representative of the Greater China Trade and Investment Promotion Agency.
Sino-Korean Business Cooperation
Entering the Age of Hand-in-Phase
Hong Zhangxi said that the cooperation between Chinese and Korean companies has undergone a lot of evolution, from the initial factory investment, The strategic partners of deep cooperation in industry and technology to the present are entering an era of hand in hand.
According to the introduction, Korean companies are mainly divided into investment and trade in China. The trade mainly consists of intermediate products such as semiconductors, liquid crystal displays, petrochemical products, auto parts and steel.
And investment is mainly concentrated in two categories: First, manufacturing. The cooperation and development of the manufacturing industry has also undergone many changes. Early Korean companies entered China, and more emphasis on China’s cheap labor market, so many Korean manufacturing plants came in. Over the years, as China’s labor costs have risen, many Korean companies have shifted their focus on investing and building factories to other lower-cost countries in Southeast Asia, and are increasingly cooperating with China at higher levels of technology, industry and markets. . The second is the service industry. The service industry is a very important investment area for Korean companies in China. At the beginning, more food, catering, cosmetics and other service industries came in. Nowadays, more and more modern service industries such as logistics, circulation and accounting are coming in.
With Hong Zhang’s observation, even though China and South Korea have established diplomatic relations for 23 years, there are still many Korean companies that do not understand the Chinese market. On the one hand, the Chinese market is very large and is an important market for Korean companies to expand overseas. On the other hand, China’s IT and electronics industries have developed rapidly and have already been in Korea with many companies. In this context, what kind of business model and new strategy should be used by Korean companies to cooperate with Chinese companies and the Chinese market has become a problem that must be rethought in the new era.
Hong’s suggestion is that the past “should be transformed into “manufacturing in China” and “co-made with China” from “made in China” to “made with China”. On the one hand, Korean companies participating in market competition in China should form differentiated competitive advantages with Chinese companies’ products, technologies and services; on the other hand, Korean companies should adopt joint innovation with Chinese companies and markets to satisfy China. Demand for the market; on the other hand, we should look at joint innovation from a larger perspective. Currently, many new industry standards have been introduced globally, and Chinese and Korean companies can cooperate under these standards at the fastest speed. Launch technologies, products and services that meet the global market.
“Made in China 2025”
What new opportunities for Korean companies
At present, China is vigorously promoting “Internet +, promoting “Made in China 2025” And what are the new opportunities for Korean companies in this context?
Hong Zhangxi believes that Korean companies have a lot of experience in smart manufacturing and green manufacturing to share and participate in China Manufacturing 2025 and China’s industrial transformation and upgrading. When it comes to smart manufacturing, you may think more about Germany’s “Industry 4.0, the US “Industrial Internet,” and in fact Korea has “Korea Manufacturing Innovation 3.0”. South Korea is a country that attaches great importance to the environment, so many environmental technologies, energy-saving and emission reduction technologies, new energy technologies, and air purification technologies can be introduced to China. In terms of smart technology, including intelligent manufacturing fields such as robots, Korea has many advanced technologies and experiences to learn from. Both Chinese and Korean companies have achieved cooperation through “cooperation”.
The Korea Trade and Investment Promotion Co., Ltd. Beijing Representative Office is located in the Wangjing Pohang Center, which basically uses Korean technology. In the building, the reporter feels the intelligence of the building in many places, from the strict security to the bathroom’s unusually sensitive automatic sensor light, showing its precision and intelligence everywhere.
Building Chinese and Korean companies
Platform for cooperation
Hong Zhangyu also admitted that Chinese and Korean companies are now more competitive than certain cooperation in certain areas. There is more opportunity for cooperation.
After Hong Kong and Chongqing believe that the implementation of China-South Korea FTA is in force, in the context of global economic integration, both companies will have more industrial technology and market cooperation, and China and South Korea are Close neighbors, and also a large trading partner, have a very large space for cooperation and development. He said that many Chinese products are selling well in South Korea. For example, Huawei, oppo, Xiaomi and other mobile phones and charging treasures have won the favor of Korean customers regardless of performance or price. For example, China’s Haidilao has already opened stores in South Korea, and many people line up to eat hot pots in Haidilao.
Hong Zhangye finally said that the Korea Korea Trade and Investment Promotion Agency was established in 1962. It is an important link for Korean companies to enter overseas and open up export markets. It is also an important platform for companies from all over the world to enter Korea. At present, 124 overseas branches have been established in 84 countries, providing comprehensive services from investment consulting to business incubation, and hope to continue to build a better bridge for Chinese and Korean companies and trade between the two countries.
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