More than 40% of China's service sector remains closed: report
SEOUL (The Korea Herald/ANN Desk) – South Korea urged to take more aggressive stance in trade talks
More than 40 per cent of China’s service sector remains closed despite a bilateral free trade agreement with South Korea, a report said on Thursday.
The Korea-China FTA took effect in December 2015 after years of negotiations, with tariffs on about 90 per cent of goods to be removed over the next two decades.
The Seoul-based Hyundai Research Institute said in its latest report that the South Korean government should focus more on the Chinese service industry, which the current FTA did not fully open for South Korean businesses.
It noted that South Korean companies are barred from doing business in 65 of China’s service areas, or 41.9 per cent of the total, including research and development and maintenance services for transportation equipment.
South Korean President Moon Jae-in will visit Beijing for talks with his Chinese counterpart Xi Jinping next week. Trade negotiations between the two countries are expected to follow next month.
“South Korea needs to take aggressive stance on the Chinese service industry, which has relatively low market openness,” the HRI report said. “Through additional negotiations, the government has to call for tools to help South Korea firms enter the Chinese market.”