Structural Changes in China’s Import and Implications for the Korean Economy

Abstract

China’s total trade amount in 2015 recorded 3,882 billion dollars, a 9.6% decrease compared to last year. In particular, imports (-18.4%) have dropped by a larger percentage than ex-ports (-2.7%), and the degree of the fall is larger than in 2009 (-11.3%), when the global financial crisis hit economies. The causes behind this dramatic decline of China’s imports are numerous, including the slowdown of the global economy, drops in global raw material prices, and increase of import substitution thanks to enhanced industrial structures. But the main underlying cause is that processing trade has decreased as the Chinese government undertook a policy transition from a growth strategy focused on investment and export to one led by domestic demand.