TEHRAN (Iran News) – Market share of South Korea in China has been on the decline for years, data showed Tuesday, amid increased competition and a decline in its product competitiveness.
South Korea companies accounted for 8.5 percent in the import market in China in 2019, down from 10.4 percent in 2015, the Federation of Korean Industries said, citing Comtrade, a UN database, Yonhap reported.
American companies saw their shares in China’s import market fall to six percent in 2019, down from 8.9 percent in 2015, the data showed.
The market shares of Japan and Germany also fell to 8.3 percent and 5.1 percent, respectively, from 8.5 percent and 5.2 percent during the cited period.
The decline came as China provided support to Chinese companies to help them strengthen competitiveness.
South Korean companies’ market share in China could fall further as an interim trade deal between Washington and Beijing would increase US access to the Chinese market.
In January, the United States and China signed the phase-one trade deal.
Under the deal, China will purchase $200 billion worth of additional US products through 2021, while the US will not implement further tariffs on its counterpart’s products and ease existing barriers as well.
In January, the Korea International Trade Association said in its report that South Korea’s outbound shipments of manufactured goods may face a tumble as the US goods may replace its products in the Chinese market.
Exports to China — South Korea’s largest trading partner — slipped 10.5 percent in January from a year earlier to $9.69 billion, due mainly to the decrease in shipments of machinery, along with the Chinese Lunar New Year’s holiday.
- source : Iran Daily, Irannews