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Bolstering Strategic Cooperation between Korea and China

Together with the Chinese People’s Institute of Foreign Affairs, the Korea Foundation conducted the 14th Korea-China Forum for the Future, based on a theme of ‘New and Practical Cooperation between Korea and China in a Changing International Environment,’ in Incheon, Korea (June 15-18).

The 15 member Chinese delegation was headed by Yang Wenchang, President of the Chinese People’s Institute of Foreign Affairs (CPIFA), while the 23 representatives of the Korean side were led by Yim Sung-joon, President of the Korea Foundation. Following opening remarks by Foundation President Yim Sung-joon and CPIFA President Yang Wenchang, National Assembly member Park Jin and Chinese Ambassador to Korea Cheng Yonghua delivered congratulatory remarks.
During the session on politics and diplomacy, chaired by former Hallym University President Rhee Sang-woo, Ambassador Chung Chongwook and National Assembly member Park Sangeun described the current political situation of the Korean Peninsula and the status of Seoul-Beijing relations, while CPIFA President Yang Wenchang and Central Party School Professor Sun Jianhang outlined the opinions of the Chinese side.



Divergence on Inter-Korean Issues
In regard to the heightened tension on the Korean Peninsula due to North Korea’s second nuclear test and continued missile launchings, the participants sought to interpret North Korea’s intention and strategy of nuclear development, along with discussing China’s role in resolving the North Korean nuclear issue. The two sides showed a considerable difference in their opinions toward a security guarantee for North Korea and China’s role in this process. China pointed out the importance of South Korea’s efforts to promote inter-Korean relations, while the Korean side called for China’s more active involvement in addressing the North Korean nuclear issue, by increasing its pressure on the North. In response to Japan’s recent discussion of its possible pursuit of nuclear armament, National Assembly member Gu Sang-chan appealed to China to put forth greater efforts to assure North Korea’s denuclearization, in order to prevent Japan’s consideration of its own nuclear program. Tsinghua University Professor Yan Xuetong attracted attention when he pointed out that China’s Foreign Ministry spokesperson had stated that China and North Korea are no longer close allies, because of the two nuclear tests by the North. He contended that China’s relations with South Korea are now closer than that with North Korea, since Beijing has since backed away from its alliance ties with Pyeongyang. The Chinese side stressed three principles: the six-party talks are the most effective means to resolve the North Korean issue through dialogue; North Korea-U.S. talks should be undertaken and inter-Korean relations should be improved to ease tension on the Korean Peninsula; and North Korea should not be excluded from the process of addressing the Korean Peninsula situation.

Bilateral Cooperation
Economic relations were discussed under the subjects of financial and economic cooperation. Professor Hong In-kie moderated the session on financial matters, which included a paper prepared by Shin Je-yoon of the Ministry of Strategy and Finance, for the Korean side, while Financial Research Institute Researcher Chen Daofu explained the policy approach of China’s financial authorities. The participants agreed on the increasing importance of Korea-China bilateral cooperation in regard to such matters as international finance and currency exchange issues, in addition to extensively discussing efforts to institutionalize a cooperative financial system on a global basis, and in East Asia and currency swap arrangements based on a common monetary system, in accordance with principles of the Chiang Mai Initiative (CMI).
To promote economic cooperation, University of Incheon Professor Jin Hyung-in outlined the challenges of Northeast Asian and Sino-South Korean cooperation in the area of logistics in today’s global era, while Inha University Professor Hyeon Jung-taek discussed the global economic downturn and Sino-South Korean economic relations. For the Chinese side, Zhao Jinping of the Development Research Center elaborated on the prospects for China-Korea-Japan trade cooperation in response to the international financial crisis. The participants of both sides concurred that bilateral trade has been adversely affected by the structural imbalance of their economic relations. It was emphasized that more active research on a Korea-China FTA would also be helpful for addressing efforts to promote industrial restructuring and to rectify the current trade imbalance.
The cultural exchange session was chaired by Tsinghua University’s Institute of International Studies Director Yan Xuetong. Professor Kim Kwang-uk of Seoul National University emphasized the need for the next generations of both countries to make more efforts to nurture a sense of community that transcends national boundaries and cultural influences, while Secretary General Jiang Bo, of the China Education Association for International Exchange, expressed the views of the Chinese side. Both sides agreed on the need for more active exchange and better understanding between the two countries’ youth and next-generation leaders, and for related programs to be supported at the governmental and private levels. The Korean side called on China to expand its youth exchange programs at the governmental level. While pointing out that the differences in educational, housing, and living conditions have tended to result in negative perceptions of each other, despite a dramatic increase in the number of students studying in each other’s country, the two sides called for more efforts to improve educational conditions and administrative systems.

Strategic Cooperation
It was especially meaningful for the 14th Korea-China Forum for the Future to be held in Incheon, a central hub of logistical relations for Korea and China. In Incheon, the Chinese participants had a firsthand opportunity to understand the importance of Incheon, as a transport center, and to appreciate Incheon’s commitment to China. The forum was also an occasion to reflect upon the rapid growth of cooperative relations between the two countries, in regard to economic and socio-cultural exchange, and to accelerate the efforts to upgrade bilateral relations into a partnership based on strategic cooperation. Korea and China might not see eye-to-eye on various issues, due to their inherent differences; however, the vast potential of Korea-China cooperative relations must be optimized for the sake of each side and the region as well.