중국의 중장기 경제개혁 과제와 전망 (China's Long-Term Economic Reform : Perspectives and Implications)

The main theme in the SOE reform, for example, is diversification of ownership. Financial reforms include abolition of limits to market access, interest rate marketization, capital market reforms, and reforms related to RMB internationalization. For fiscal systems and taxation, an appropriate reform in accordance with the transformation of economic development mode will be adopted; and in order to establish the price mechanism determined by the market, government intervention in the price-decision process will be reduced. In terms of rural-urban integration, land reform and hukou reform will be promoted and a variety of demonstrative actions will be undertaken to expedite domestic reform following opening-up policies. In addition, to improve people's livelihood, social reforms such as increased distribution to laborers and resolution of the income inequality issue will be enacted.China's economic reform have important implications not only for Korean enterprises in China but also for Korea's external trade with China. Foremost, China's economic growth rate is expected to be slowed due to extensive economic reforms. At this point, Korea is noticing a marked slowdown in the rate of increase of its exports to China. Moreover, Korea should be prepared as the reforms in China may become a double-edged sword in terms of investment and export to China. On one hand, the Chinese market will provide more opportunities in new fields, in case the reform leads to improved investment systems and enhanced level of openness. On the other, increased factor-price could develop into a big threat for Korea. It is necessary for the Korean government to concentrate efforts on creating an institutional framework to improve the environment for economic cooperation with China in order to counteract the effects of extensive economic reform policies of the new Chinese government. In this context, the Korea-China FTA will become key and during the negotiation, Korea should seek ways to take advantage of the progress from China's long-term economic reform and changes in international economic policy