Chinese-speaking areas might be the biggest export markets of $43.3billion this year

Chinese-speaking countries seem to stand out as the biggest export markets and trade surplus areas this year, said the Bank of Korea (BOK).
The BOK reported that exports to Chinese-speaking regions stand at $43.3billion, up about 14 percent. Especially, the Republic of China, which occupied half of the exports, is expected to maintain an 8 percent growth rate for two years, in part due to the aid of entrance to the World Trade Organization, propelling development policies in the West and fostering state of the art technology industries.

As the competition, however, with advanced countries, including Japan, is increasing more and more, there might be a need to prepare trade infrastructure establishments, distinctive export strategies, a fundamental reinforcement of export industries, and consumer goods for Chinese income increases.
To establish the trade infrastructure, there is a need for Chinese interpretation on the internet for traders not qualified with English-language skills, in order to be ready for e-commerce trades between China and Korea, and to interact with Chinese dedicated export companies.

Meanwhile, consumption levels in 2000 increased 4 fold over 1999 as China received more money due to continuous economic development. However, its electronic goods provision rates such as personal computers, cell phones, air-conditioners, and a passenger cars stood at pretty high levels. For these products, which are predicted to grow sharply hereafter, Korean companies are required to develop marketing strategies fitted for consumption patterns, for example, to establish distribution chains centered on mid or high-cost goods and to intensify after-sales service.

In addition, as the Chinese domestic market opens up in accordance with its entrance to the WTO, competition between international companies in China and local businesses will soar and export expansion depending on discounts will come to an end. Now is the time for Korean companies to rejuvenate their images through competitive goods and top-of-the-line designs.

Also, Korean exports to Chinese-speaking areas concentrate on extensively providing a few items such as information technology, semi-conductors, chemicals, and steel. This tendency might break import sanctions and cannot flexibly respond with circumstantial changes, resulting in it being continuously harder to increase exports.

For instance, in 2000, export prices for semi-conductors and information technology (IT) products rapidly dropped, resulting in drastic export decreases and a deteriorating trade balance. To prevent this, diversification of export products might be seriously needed, commented an official.