China fast catching up in terms of competitiveness

Korea should ramp up efforts to make its key industries more competitive in order to cope with tougher competition from Chinese rivals, a report said yesterday.

The Korea Chamber of Commerce and Industry (KCCI) said some industries may see their competitive edge overtaken by Chinese counterparts if the new Chinese government, to be led by incoming President Xi Jinping, aggressively pushes to enhance the country’s industrial structure and boost domestic demand.

“The industrial competitiveness gap between China and Korea has been sharply narrowed in the global market, as Chinese companies have secured high-end technologies and high-quality goods, brushing off a low-price policy,” it said.

The KCCI said Chinese companies have almost caught up with Korean rivals in some industrial sectors. According to the report that sets the index measuring the competitiveness of eight Korean industries in terms of prices, qualities and technologies at 100, the index for China’s textile industry reached 99.1.

The index for Chinese mobile phone makers stood at 93.3, trailed by Chinese steelmakers with 92.7 and the country’s petrochemical companies with 91.6.

The index for Chinese shipbuilders reached 85, with those for auto makers and display makers coming to 77.8 and 76.7. The index for Chinese semiconductor makers stood at 70, marking the biggest gap of industrial competitiveness with Korea.

In a bid to overcome competition from China, Korea should secure original technologies in some sectors, including automobiles and textiles, and improve technology cooperation with China, the report said. Korean companies have to expand their presence in the central area of China, which is expected to emerge as the country’s future economic hub, it said.

Yonhap