Wednesday, February 13, 2008

[The Chosun Ilbo, January 28 2008] Exports of Intermediate Goods to China Jump Five-Fold

Korean exports of key manufacturing parts to China have seen a five-fold jump in the past decade thanks to China's active promotion of foreign investments there.

According to findings by the Bank of Korea, the trend explains how aggressively vertical specialization of trade between the two countries has expanded during that period.

In vertical-specialization-based trade, a country uses imported intermediate parts to make complete products for export, thus two or more countries are linked sequentially to produce a final item.

Regarding such trade with China, Korea has shipped out the most IT equipment and automobile parts for Chinese manufacturers to assemble finished products for the global market.

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