Trade Volume with China Exceeds that with the U.S. for the First Time

China has overtaken the U.S. as Korea’s largest trading partner for the first time.

According to a Beijing official of the Korea Trade-Investment Promotion Agency (KOTRA) on September 22, the trade volume between Korea and China in the first seven months of this year stood at $43.89 billion (approximately 50,473,500,000,000 won), exceeding Korea’s trade volume with the U.S. and Japan of $40.2 billion and $39.28 billion, respectively.

China was Korea’s sixth largest trading partner in 1992, when the two nations first established diplomatic ties, third in 1993, second after 10 years in 2003, and finally took the top position for the first time this year.

The trade surplus with China was also the highest, standing at $12.17 billion over the first seven months of this year, exceeding the surplus with the U.S. of $7.9 billion.

Korea sent the largest amount of exports to China, followed by the U.S. and then Japan this year, while the largest imports were from Japan, the U.S., and China.

A KOTRA official said, “There is an urgent need to prepare appropriate measures, as it is highly likely that the Chinese government will strengthen anti-dumping regulations on Korean products and demand a decrease in the surplus margin, with the expansion in Korea’s trade volume and trade surplus regarding China.”

Keuk-In Bae bae2150@donga.com