China seeks to bring South Korea to its side through FTA

China`s aggressiveness toward sealing a free trade agreement with South Korea stems not only from economic benefits but also from intangible effects and symbolic significance.

Since Seoul and Beijing have similar food cultures, China can enjoy a competitive edge in South Korea if its agricultural and fisheries products are imported in South Korea. Such economic benefits, however, are not the sole reason for China to pursue the trade agreement, however. Beijing has other reason to urge Seoul to resolve "sensitive issues like ones on agricultural and fisheries products" in a calm and orderly manner.

China has concluded free trade deals mostly with developing economies. By contrast, South Korea is China`s third-largest trading partner and a manufacturing powerhouse. A free trade agreement with Seoul will be Beijing`s first free trade accord with a major trading partner and a world leader in manufacturing.

China wants to lead the formation of an East Asian economic community to rival those led by the U.S. and Europe. The conclusion of the deal with South Korea is a key step on a path toward China`s goal. Furthermore, certain Chinese officials want Beijing to expand its influence over South Korea, a close ally of the U.S. By focusing its attention again on Asia last year, the U.S. stepped forward to keep China in check. Against this background, Beijing is actively seeking to sign a free trade agreement with Seoul.

South Korea and China announced this week the results of a bilateral summit that includes a plan to start free trade talks in the form of a joint news release, not a joint statement. This was apparently a request by Beijing.

A government official in Seoul said, “China might`ve had no choice but to consider North Korea`s response because building an economic alliance with South Korea could ruffle the North`s feathers.”

mungchii@donga.com