▮ ABSTRACT ▮A Study on Chinese Countermeasures of FTA between Korea and China Yang Xia Department of International Trade The Graduate School of Chonbuk National University Under the guidance of Prof. Ph. D., Song,Chae-HeunIn the past decade,economic globalization and regional integration has been deepened,resulting in a flood of regional trade agreements especially bilateral Free Trade Agreements,through which countries can obtain welfare increase and trade creation.The same is true of China and South Korea. Given the satisfying political relationship, close trade, even the investment relations between China and South Korea in the past 19 years, the desire for strengthening economic cooperation between them is springing continuously. However, trade liberalization is a double-edged sword. Not only FTA will bring the welfare effects but also the unfavorable impact to the member countries, which have the relative inferior industries.If South Korea-China FTA succeeds,the inferior industries in both countries will be impacted. To take this kind of impact into consideration, the domestic related interest groups would object to South Korea-China FTA desperately.Therefore, in order to propose the counter-strategies for the concrete Industrial sector and reduce the industrial adjustment cost as far as possible, this paper analyzed the corresponding plans of CKFTA on the basis of the feasibility study.The paper includes five chapters:Chapter 1, the introduction. It introduces research background and purpose.Chapter 2, the literature review of Free Trade Arrangement, the analysis of economic effect of free trade area, and the literature review about South Korea-China FTA.Chapter 3, the explanation of why China has interest in negotiating a FTA with South Korea, the economic and political effects on South Korea-ChinaFTA, whether there is complementary in the trade between South Korea-China FTA, and whether both sides can offer supports to the reciprocal market.Chapter 4, the expected effects on inferior industries of South Korea-China FTA, and the China’s corresponding strategies for South Korea-China FTA.Chapter 5, there will be some other problems like agriculture, service, manufacture which are also analyzed in this paper.Despite anticipated conflicts of interests, both Korea and China governments share the common standpoint of establishing a FTA in the future to augment bilateral economic relations. As a result, a FTA between Korea and China will be concluded in the near future. A Korea-China FTA will play a significant role in NEA economic integration and would be a pivotal choice for both of Korea and China. It will propel the economic and trade relationship between Korea and China into a new phase.Key words: South Korea-China FTA ,Chinese Countermeasures--------------------------------------- Student ID Number :200950888