Recip rocal Neighbors

Recip rocal Neighbors

China and the Republic of Korea (ROK) have been good neighbors ever since they established diplomatic relations on August 24, 1992. Their relationship is as close as some media outlets have reported: the two countries have already become highly interdependent.Beijing Reviewspecial correspondent He Jing interviewed Lee Kyu Hyung,ROK Ambassador to China, and discussed the Sino-ROK cooperation during the past 20 years and the way to build a closer and more powerful bilateral relationship.

Beijing Review: W hat m ilestones have China and the ROK experienced in their past journey?

Lee Kyu Hyung: I believe there have been several m ilestones of the Sino-ROK relationship over the past 20 years.

Leaders of the two countries reached a consensus in May 2008 to promote their bilateral relationship into a strategic cooperative partnership. I personally believe this can succinctly describe the progress China and the ROK have jointly made in political, economic and cultural cooperation during the past two decades. But I don’t take for granted the accomplishments of our overarching strategic cooperative partnership. The two sides should continue to make efforts to deepen the partnership, which is what we’re looking forward to in the future.

The two countries began negotiations for a free trade agreement in May, which marks the development of bilateral economic cooperation. We don’t know when such an agreement w ill be signed, but it shows that both sides are determ ined to achieve a reciprocal and w inw in bilateral relationship. The negotiations also raise their relationship to a new level, and fully express China and the ROK’s sincerity in developing a closer relationship.

People in the two countries have been in support of building a strong neighborly relationship during the past two decades.Conventional wisdom points out the direction we need to go.

ROK President Lee M yung Bak said during his visit to China earlier this year that the ROK looked forward to building a closer and m ore powerfu l strategic partnership. In what ways can China and the ROK conduct better cooperation?

Our bilateral relationship has developed in many facets during the past 20 years. These relations w ill continue to grow in more fields,so as to further enrich the Sino-ROK strategic cooperative partnership. Leaders and government officials of the two countries should continue to make more efforts to enhance dialogue and expand mutually beneficial cooperation.

The two sides jointly decided to raise bilateral trade volume to $300 billion by 2015.Once the free trade agreement is signed, their econom ic ties may allow for opportunities in other fields as well.

There is ample space on the world stage to expand our cooperation. For example, we shared common ground in dealing w ith the global financial crisis in the Group of 20. M oreover, w e strengthened cooperation in coping w ith the financial crisis. Our bilateral cooperation will span the country-to-country scope and help further the goal of improving living standards across the world.

W hat are the characteristics of trade and investm ent between China and the ROK?How w ill the tw o develop under the fram ework of the China-Japan-ROK investment agreem ent and future free trade area?

We predict that the China-Japan-ROK free trade area negotiations w ill formally begin by the end of 2012. Previously, the three countries signed an investment agreement, which w ill create a better investment environment for enterprises in these countries, and enlarge their investment volume to each other. We expect to make contributions to the econom ic integration of Northeast Asia and to the peaceful development and prosperity in the region.

By the end of 2011, the ROK had invested a total of $50 billion in China, mostly concentrating on labor-intensive industries and processing trade. As the environment inside and outside China has changed, the ROK’s investment structure has changed as well. Our investment focus has shifted to hi-tech and environmentally friendly programs. For example, the liquid crystal display factory of LG Electronics that launched in Guangzhou, capital of south China’s Guangdong Province, constitutes a $4-billion investment. The Samsung Group also plans to invest $7 billion in Xi’an, northwest China’s Shaanxi Province. Many ROK enterprises drew up new business blueprints in accordance w ith China’s 12th Five-Year Plan (2011-15), in which China stresses the stimulation of domestic demand to spark active economic grow th.

ROK enterprises in China can share their experience in modern business practices, like technology transfer and technology development,w ith Chinese businesses. In the service sector and circulation industries including logistics,wholesale and retail, they provide Chinese customers w ith premium services. ROK enterprises in China hire many Chinese employees, contributing to China’s social development. They also make great efforts to uphold social responsibility.Their activities have contributed to the development of the Sino-ROK friendship.

Many ROK en terp rises d rew up new business b luep rin ts in acco rdance w ith Ch ina’s 12 th Five-Yea r Plan (20 11-15), in w h ich Ch ina stresses the stim u la tion o f dom estic d em and to spa rk ac tive econom ic g row th

YAO QILIN

Prob lem s stemm ing from agricultural products have been the biggest obstacle to free trade agreement negotiations between China and the ROK. What could hinder the China-Japan-ROK free trade negotiations?How w ill a China-Japan-ROK free trade area affect the rest of the region?

Agricultural products have been a sensitive subject during Sino-ROK free trade agreement negotiations. In the com ing negotiations between the three countries, China may encounter problems w ith the manufacturing industry,while Japan will feel hesitation in terms of agricultural and aquatic products. We insist that the free trade agreement should target a reciprocal and w in-win result. If the agreement causes great losses to a certain country’s industry, it w ill be very difficult to push forward w ith the agreement. Therefore, our countries should compromise w ith each other to reach the expected outcome.

The three countries hold a very influential place on the world stage due to their economic strength,especially their foreign trade, so signing a free trade agreement is very significant.Furthermore, enhancing cooperation through economic integration w ill help solve the problems we face in political and diplomatic areas.Considering the different situations of the three countries, however, it is hard to predict when and how such an agreement w ill occur.What I want to stress is that all three countries need to make joint contributions to the establishment of the free trade area.

This year marks the Year of China-ROK Friend ly Exchanges. How have the two m ade p rogress in term s of cu ltural exchange?

Cultural cooperation plays an important role in developing the Sino-ROK relationship.Our relationship has advanced greatly during the past 20 years, and I believe cooperation in cultural, historical and artistic areas has contributed to that. Chinese culture spread to the ROK before we set up our diplomatic relationship. Cultural interconnectedness serves as part of the basis for bilateral communication and cooperation.

For the past 20 years, we have been enjoying each other’s cultures, even producing concerts and movies together. We not only share one another’s cultures, but also create a common culture between us, which is something we should continue to work on for the betterment of our relationship.

Our embassy holds two weeklong friendship activities in Chinese provinces or cities each year. Last year, the activities were held in Wuhan and Zhengzhou, and this year, in Xi’an and Changsha. During these events,ROK enterprises and cultural groups work w ith their Chinese partners to find cooperative plans to boost bilateral friendship.