South Korea and China have agreed to better implement the bilateral free trade agreement and ease non-tariff barriers for Korean companies operating businesses in China, Seoul's trade ministry said Friday.
On Thursday, South Korean Trade Minister Joo Hyung-hwan held a meeting with his Chinese counterpart, Gao Hucheng, to evaluate the implementation of the FTA that took effect in December and seek ways to step up business ties between the two nations.
They also touched on the ongoing anti-dumping probe on imports of Korean-made electrical steel, bispenol A and acetone, as well as the new battery subsidy rule, the ministry said.
In January, China stopped offering subsidies to nickel cobalt manganese (NCM) battery plants in China, which are mostly owned by South Korean companies, citing safety issues. In what appeared to be a discriminatory move, however, Beijing provided incentives to Chinese producers of lithium iron phosphate (LIP) batteries used in electric buses.
The move was seen as an apparent attempt to boost its local manufacturers and isolate their South Korean rivals, including LG Chem Ltd. and Samsung SDI Co., which have expanded production facilities to tap deeper into the fast-growing Chinese market.
"We asked the Chinese government to reflect Korean companies'
opinions in the process of safety inspection for batteries, and Chinese officials promised to discuss the issue with the related organizations so as not to disadvantage foreign companies," a ministry official said.
The two sides also agreed to launch working-level talks to discuss service and investment between the two nations.
"The service and investment consultations are expected to foster new service industry in such areas as culture, contents, medicine and tourism in both countries," the ministry said.
China is the world's single largest importer of South Korean goods, accounting for nearly one-fourth of South Korea's total outbound shipments. However, South Korea's exports to China have been on the wane despite the implementation of the Korea-China FTA in December 2015. (Yonhap)
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