Expansion Strategy for Main Industries into Eastern Regions of China
|Author||Cho, Chuel et al||Date||2018.12.06||Page|
The study was designed to enhance understanding of the importance of geopolitical strategies in eastern China’s East(jingjinji: Bejing, Tianjin, Hebei) region, seek roles in changes in the quality of the Chinese industry, and capture the changing opportunities to enter the domestic market in China. This research consists of two volumes. The research in Volume I analyzed economic conditions, industrial policies, industrial structure, corporate trends, and market trends in the three regions of the eastern region, and identified the trade structure and the favorable direction of cooperation among Korea and the three North American companies to advance. Volume 2 focused on analysis of national territory development strategies, logistics and transportation in the Jingjinji area. Through analysis of transportation infrastructure and logistics status in the eastern part of the country, we will provide basic data on Korean companies’ advance into the eastern part of China.
The greatest strength of the Jingjinji region is that it is very geographically close to Korea. Geographically, the region and Korea have the potential to develop into a single economic bloc. In addition, the Jingjin region is likely to develop into three major economic blocs in the Xi Jinping era, along with the existing Yangtze River Delta or Peal River Delta. The Jingjinji region is the mecca of the Chinese knowledge industry, a region most likely to lead the fourth industrial revolution. In fact, China’s fourth industrial revolution, including knowledge-based manufacturing and service industries, is set to take the lead, as mentioned above. From the point of transportation and land, the Jingjin area is the center of China’s high-speed rail and highway as it includes the capital, Beijing, and the major cities in Jingjin are very convenient for logistics and human exchanges.
In order to help Korean government and businesses advance in the 3 provinces of eastern regions of China, there are lots of things to be done. Above all, cooperation paradigm at government level is necessary to seek for measures for Korean businesses to better expand into the market. Unlike Korea, Chinese government has much authority in regional economic development, right of taxation, and legislative power and beyond. Therefore, in order for Korean businesses to efficiently enter the market in the 3 provinces of eastern China, an official and systematic cooperation platform is crucial between the 3 provinces and Korean government due to Korean businesses’ lack of experiences and difficulties to access to the market. Sharing a win-win vision between Korea and the 3 provinces is also important. A sincere discussion on which industry to cooperation first needs to be carried out, too. At corporate level, it is necessary to appropriately understand legal systems and policies of China, select the right region to have corporate profits, and step up an expansion strategy.
Keywords: eastern Regions, Beijing, Tianjin, Hebei, Jingjinji, foreign trade and investment, strategy of Korean businesses’ overseas expansion