Export competition with Japan, China heating up

 Korea is facing fiercer competition with China and Japan in the global market as its export 
 items are increasingly overlapping with those of its two neighbors.

 According to the Korea International Trade Association yesterday, the number of Korea˘Ľs
 export items overlapping with both Japan˘Ľs and China˘Ľs in the first half of the year was 18,
 up five from 2000.

 The number of products that were not in competition with either of the two nations declined
 to 45 from 46 in 2002, 55 in 2000 and 62 from 1998.

 Korea and Japan exported 43 common items among their top-100 export products, up
 from 32 in 1998. They include six common items among their top-10 exports, an increase
 of one.

 With China, Korea shared 30 export items among their top-100 exports, and four items out
 of their top-10 exports, up by nine and two, respectively, in the same period.

 Among the top-100 exports, Korea shared items with Japan mainly in the automobile,
 steel and metal, and machinery sectors, while it shared mainly in the electronics, textiles
 and mineral-fuel sectors with China.

 However, as China˘Ľs ship-making industry has developed surprisingly quickly recently, it
 is expected that from about 2005 China will rival Korea and Japan in the shipbuilding
 industry as well.

 "Though China˘Ľs shipbuilding companies have made only small- and medium-sized ships
 or low-value ships such as bulk-carriers and cargo vessels so far, it recently obtained
 design and construction technologies to manufacture high-value-added ships" the POSCO
 Research Institute said in a report yesterday.

 The report explained that China˘Ľs shipbuilding industry is rapidly growing, as it˘Ľs
 competitiveness has been enhanced by tax incentives, the introduction of advanced
 production systems and the consolidation of 50 small ship yards into two large dockyards.

 The report forecast that China would emerge as a major supplier of vessels after 2005,
 when its construction of new, large-scale, advanced facilities is complete. The research
 institute added that the growth of Chinese shipbuilding companies could threaten the
 position of Korea and Japan as the world˘Ľs largest and second-largest ship providers.

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