The Korean economy has rapidly become dependent on China since the two countries established diplomatic relations in 1992. China became the largest importer of Korean goods, beating the U,hollister france
.S, last year and the biggest target of Korea��s foreign direct investment in 2002. With sluggish domestic consumption, the Korean economy has been heavily depended on exports, especially exports to China. It is worried that under the current situation, if Korea��s exports to China decrease due to spillovers of China��s deceleration policy, it would nip Korea's economic recovery right in the bud.
Korea��s exports to China grew by 47.8 percent last year, accounting for 18.1 percent of Korea's total,air jordan
. Exports to China constituted 88.1 percent of Korea's trade surplus. Without the help of exports to China, Korea would have experienced an enormous trade deficit. By the volume of trade, China is Korea��s third largest trade partner,hollister
, following the U.S,hollister france
. and Japan. However,scarpe hogan
, analysts say that China would take first place soon because the differences are not that huge,abercrombie
Of Korea��s main export products,abercrombie france
, China-dependent goods include steel plates (40.9 percent),louboutin pas cher
, synthetic resin materials (33.8 percent),louboutin pas cher
, petroleum goods (25,air jordan pas cher
.9 percent) and computers (24.6 percent). Those industries, therefore,abercrombie
, are most worried about being hardest hit by the Chinese shock. China accounts for 44.9 percent of Korea��s foreign direct investment. 40 percent of firms that hope to conduct business abroad want to advance into China. Cho Hyun-jun, a researcher at the Korean Institute for International Economic Policy, said that Korea should be cautious of the danger that the Korean economy might become so excessively dependent on China that the country might become a vassal of China.
Related articles: Also Monday states of consciousness
The paper said the U.S. believed North Korea made the demand because it calculates that by making its nuclear power status an established fact it can earn more concessions during negotiations. But Washington declined to respond to the demands, the Asahi said.