Yang Fan, spokesperson for China Council for the Promotion of International Trade (CCPIT) Photo: Courtesy of CCPIT

Chinese firms are urging South Korea to lower the barriers to entry for foreign investment, enhance the stability and transparency of business policies and regulations, and strengthen innovation cooperation with China in the fields of the digital economy, clean energy, new-energy vehicles (NEVs) and others, a survey showed.

The 2023 South Korea Business Environment Report was produced by the China Council for the Promotion of International Trade (CCPIT) based on in-depth investigations of Chinese firms operating in South Korea, Yang Fan, a spokesperson for the CCPIT, said on Wednesday during a regular press conference.

"Chinese enterprises attach great importance to investment and operation in South Korea, given the close economic ties between China and South Korea and the deep integration of industry and supply chains," said Yang.

Chinese firms operating in South Korea had an overall good performance in 2023, with 56.3 percent of those surveyed reporting profitability, 48.2 percent reporting revenue growth and 42.2 percent reporting profit growth, according to the report.

The report also included five expectations of Chinese firms regarding the business climate: lower market access barriers for foreign enterprises; improved stability and transparency of enterprise-related policies and regulations; enhanced support for foreign enterprises in South Korea and guarantees of equal access to supportive policies; continuous optimization of the employment environment for foreign firms, and closer innovative cooperation with China in such fields as the digital economy, clean energy and NEVs.

Improving the business environment for foreign firms can boost investment and trade cooperation, analysts said.

China and South Korea maintain strong economic ties. Bilateral trade stood at $310.74 billion in 2023. Although the amount dropped by 13.5 percent year-on-year, China remained South Korea's largest trade partner, according to the General Administration of Customs of China.

The two economies are closely connected, as are the two industry and supply chains, Chinese Foreign Minister Wang Yi said on February 6 during a phone call with the South Korean Minister of Foreign Affairs Cho Tae-yul at the latter's request, according to a readout published on the website of the Ministry of Foreign Affairs.

Wang called on both sides to jointly keep the industry and supply chains stable and smooth and jointly steer clear of politicizing and instrumentalizing economic issues and overstretching the concept of security.

Global Times