Driving forces: Robust China-ROK trade ties power APEC forward

As leaders of the Asia-Pacific Economic Cooperation (APEC) economies gather in the Republic of Korea for the annual meeting this week, a key focus area is the economic relationship between China and ROK, which has strengthened significantly in recent years, marked by robust bilateral trade. As two of the largest economies in Asia, their trade dynamics play a crucial role in regional and global markets.

China-ROK bilateral trade and investment

From semi-conductor wafers to new energy batteries, and from smart cars to electronics, trade and investment between the world's second-largest economy and one of the most prominent "Asian tiger economies" has been witnessing an upward trajectory.

Bilateral import and export volume between China and ROK in 2024 stood at $272.91 billion, an increase of 2 percent year on year, according to data from the Republic of Korea Customs Agency.

ROK's exports to China totaled $133.04 billion, an increase of 6.6 percent, whereas its imports from China were $139.87 billion, a decrease of 2.1 percent.

ROK's direct investment in China in 2024 was $1.93 billion, a year-on-year increase of 2.1 percent, according to data from the Export-Import Bank of Korea. By the end of 2024, ROK had invested a total of $95.62 billion in China.

China's investment in ROK in 2024 was $5.786 billion, marking a year-on-year increase of 266.1 percent, according to the statistics from the Ministry of Industry, Trade and Resources of ROK.

In April 2025, the 11th round of negotiations in the second phase of the China-ROK Free Trade Agreement held in Beijing focused on key areas such as service trade, investment and finance.

Promotion of bilateral ties across the Yellow Sea

Both China and ROK have highlighted the need for greater mutual co-operation. It is hoped that the two sides can firmly be each other's friendly neighbor of mutual trust and partner of mutual achievement, and promote a sound, steady and substantial development of China-ROK relations, said Chinese Premier Li Qiang when meeting with then ROK President Yoon Suk-yeol on the margins of the ninth Trilateral Summit Meeting among China, Japan and ROK, on May 26 in Seoul.

The ROK president also reciprocated, emphasizing that close cooperation between the two countries is of great significance not only to the two countries' development, but also for achieving world peace and prosperity.

The acceleration of regional economic integration has injected new momentum into the deepening cooperation between China and ROK. The comprehensive implementation of the Regional Comprehensive Economic Partnership has strongly promoted the process of trade liberalization and facilitation between the two countries, while regional supply chain cooperation has increased further.

Deepening people-to-people and cultural exchanges

Exchanges have also transcended traditional trade and commerce of goods and commodities, with meaningful people-to-people and cultural resonance taking centre stage in recent years. 

To promote people-to-people exchanges, starting November 8, 2024, China implemented a visa-free policy for ROK holders of ordinary passports on a trial basis, allowing ROK citizens to enter China for business, tourism, visiting relatives and friends and transit, for up to 15 days, which has been subsequently extended to 30 days. The number of ROK tourists visiting the Chinese mainland reached 2.31 million in 2024, an increase of 115.6 percent over 2023, according to data released from the Ministry of Legal Affairs of ROK.

Room to grow

While the trajectory of ties is positive, challenges do remain on account of the evolving geopolitical and global trade situation, reflecting room for the the relationship to grow. Both countries have expressed commitment to overcoming these hurdles, however, to ensure sustained growth in their economic partnership.