16 IT products out of 20 top export product of China¡¦ ¡°China ahead of Korean technology¡± crisis
Park Jung Il | comja77@ | 2018-01-17 10:56:39

China is rearranging its position as an IT (information technology) exporting powerhouse. Experts point out that China is threatening Korea`s position by showing high competitiveness not only in products such as smart phones and home appliances but also in IT new industries such as drones and electric cars.

The Korea International Trade Association (KITA) has analyzed the main export items of China, and 16 of the top 20 items were classified as IT related products or parts. On the contrary, only 10 of the top 20 items exported by Korea were related to IT.

IT exports accounted for 23.5% of exports in China last year. Korea`s IT exports accounted for 25% of its exports last year, but its weight dropped to 14.7% if it excludes semiconductors, which are the top exports. If there were no brisk exports of memory semiconductors, it would mean that Korea`s main export items would be ashamed to say IT.

Especially, the gap between China and Korea is becoming more and more widespread in the line of telephones for wireless communication represented by smartphones. Korea`s exports of this item declined from USD 13.17536 trillion in 2013 to KRW 6.56 trillion as of the end of November last year. Conversely, during the same period China`s exports increased from USD 95.6 billion to USD 108.848 billion.

Experts mention that China, which was the production base of major IT companies in the world, is now increasing exports by boosting its competitiveness, while major domestic IT manufacturers such as Samsung and LG Electronics have increased the proportion of overseas production. It is pointed out that China`s IT manufacturing competitiveness itself is not just a matter of production area, but it is so high as to threaten Korea. "China has already dominated emerging markets such as home appliances, low-end mobile phones and computers, and has been influential in major markets worldwide," said Moon Byeong-ki, a senior researcher at the Korea International Trade Association. We are growing rapidly because we cannot grow." "The export of parts, which has been increasing since the automobile and IT product manufacturing plants moved to China, is now becoming less and less competitive as parts competitiveness in China is improving." Actually, CEOs of major domestic group who visited `CES 2018` in Las Vegas recently revealed the crisis that China`s technology has crossed Korea. Park Chung-ho, president of SK Telecom, stated that "China has already surpassed Korea not only in high-tech areas but also in all industries.¡±

Meanwhile, China`s trade volume last year reached USD 4,010.5 billion, up 11.4 % from the previous year, according to the China Customs Union. Among them, exports rose 7.9 % to USD 2.6236 trillion while imports rose 15.9 % to USD 1.84 trillion. China is expected to increase its gross domestic product (GDP) by 0.4 % points to 6.9 % this year.

By Park Jung Il comja77@


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