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8 out of 10 Chinese export companies “It is difficult to recover the trade balance within the year”

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Courtesy of the Korea Chamber of Commerce and Industry headquarters located in Sejong-daero, Jung-gu, Seoul

Eight out of 10 Korean companies exporting to China predicted that it would be difficult for the trade balance to recover within this year.

The Korea Chamber of Commerce and Industry announced on the 10th that a survey of 300 companies exporting to China revealed on the 10th that 84.3% responded that it would be difficult to recover within the year. 40.0% said it would be ‘recovered only after 2 to 5 years’, and 27.3% said ‘recovery is possible only next year’. 17.0% concluded that “recovery is difficult due to technological improvements other than the advancement of China’s industrial structure.”

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In addition, 50.7%, half of the companies exporting to China, responded, “I have felt the contraction and sluggishness of exports to China this year.” This negative response is interpreted as the result of the recent sluggish exports to China, including the domestic semiconductor industry. The Korea Chamber of Commerce said, “Short-term factors such as a drop in semiconductor unit prices and an increase in inventory held by Chinese companies have worked.” There is,” he said.

It was found that companies feel threatened by the narrowing of the technology gap between Korea and China. In this survey, 36.6% said the technology gap with China was ‘similar’ and 3.7% said it was ‘lags behind’. In addition, although they are now ahead, 38.7% said the gap was ‘within 3 years’ and 15.0% said they caught up with ‘within 5 years’, which was more than 6% who said ‘more than 5 years’.

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Companies also expressed their concerns about the patriotic consumption craze in China. When asked if they felt a decrease in their preference for Korean products due to these environmental changes, 32.7% answered yes. 31% said ‘I can’t pay’ and 36.3% said ‘normal’.

Source: Donga

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