China Passes Korea in Ten Years

A report saying that China will outdo Korea in almost every industrial field within 10 years has been come out.

Samsung Economic Research Institute explained yesterday on the report titled `China is Rising` that China has already taken the first place from the market share of TV, air-conditioner, and washing machine. And the report also indicated that China’s technology on textiles, steel, and digital electric appliance will pass Korea within the next five years, and in next 10 years, so will the competitiveness on infor-communication, automobile, and ship-building. Especially, the report pointed out that since China recently began to focus on IT technology, Korea’s IT industry will be influenced by China.

The report forecasted that China, whose rate of economic growth has been 7~8 percent since 1997, will maintain such a growth rate until 2015. The report reckoned the enormous domestic market of 1.27 billion population, the 60 million Chinese diasporas, and the leadership of the government as their strongpoint.

To join the World Trade Organization (WTO) and to become a host of the Olympic is another positive factors for development of Chinese economy. The report also added that highly-educated young people including those who studied abroad are being recruited as CEOs.

The report indicated that the rise of China can be a good opportunity for Korea to expand its investment and export, but if Korea dose not effectively deal with it, Korea’s portion from the world market can be encroached by China. The report said that Korea needs to: restructure its industry system into high-tech industries that have high added-value, construct a cooperative relationship with China through, for example, joint investment, and look for a business strategy that fits the China’s regional characteristics.

Kim Seung-Jin sarafina@donga.com