Many people have differing opinions about the development of China today, and the reason can be attributed to China’s little giant, Deng Xiaoping. As a representative of pragmatist philosophy, he established the philosophy that it does not matter whether a black cat or a white cat is used to catch mice. His pragmatic philosophy, which states that even if the country develops, one must be humble and not arrogant, taught many lessons to the Chinese people.
Looking at the process, since Deng Xiaoping, the industrial and economic relations between Korea and China have developed rapidly in terms of trade. In 1992, Deng Xiaoping strongly promoted reforms following the Tiananmen Square incident in China, and the Chinese Communist Party officially declared a ‘socialist market economy’ system. As a result, Korea played a central role in helping China escape poverty and transform the country. As of 2011, trade between Korea and China surged to approximately $220.6 billion, with China becoming Korea’s largest trade and investment partner and Korea becoming China’s third largest trade and investment partner.
This explosive growth and development of economic relations between the two countries was of great significance. China has been politically stagnant for about 100 years, and economic growth has been likened to waking up a sleeping bear. The pragmatist policy has grown rapidly since the introduction of the ‘reform and opening’ strategy in the late 1970s. The rapidly growing economic power was also due to geographical proximity, and at that time, in 2000, Korea was evaluated as the world’s No. 1 industrial country. With a highly knowledge-based economy, it was a leading global industrial technology in machinery, chemistry, technology, steel, shipbuilding, etc., such as semiconductors, display manufacturing, information and communication, etc. automobile. It had secured various production bases. After the ‘socialist market economy’ system officially declared by Deng Xiaoping, Korea moved its industrial base to China and transferred its total industrial production system, from technology and production sites to quality control, to China. This became the root of the industrial production infrastructure that enables China to grow today.
Deng Xiaoping’s market economy made China a global growth country. The relationship between the two countries contains both opportunities and risks. China’s rapid growth had a two-faced impact on the global economy. Two distinct features of trade between Korea and China are the rapid increase in overall trade volume and the large increase in bilateral trade volume. Korea’s exports to China were particularly notable, and the bilateral trade between Korea and China, which was only $6.4 billion in 1992, increased 34.6 times to about $220.6 billion in 2011, and Korea’s total foreign trade increased 6.8 times over the same period. During this period, Korea’s exports to China increased 50.6 times from $2.6 billion to $134.1 billion. Korea established a technology transfer plant in China, which connected production and exports, and through trade between the two countries, Korea has recorded a trade surplus for 19 consecutive years since 1993. In 2011, the trade surplus reached $47.7 billion, or 21.6% of bilateral trade. In the case of Korea, China contributed greatly to maintaining economic growth through global exports and trade surplus.
While Korea helped China grow, Korea actually recorded a trade deficit with the rest of the world. To this end, many Korean companies helped China grow and established basic manufacturing facilities in China, which had no manufacturing technology capabilities for about 100 years. As a core country that provided production technology capabilities and enabled China to industrialize on its own, Korea was the core that created innovation in the early days of the foundation. After that, China was able to establish an industrial base that could export to Europe and the United States on its own. From a larger perspective, the concept of ‘China’s opportunity’ or ‘China’s boom’ may perhaps emerge from this trade background, but the question is how could this have happened and how can we explain this huge thing? This was possible because of the small giant Deng Xiaoping and Korean President Park Chung-hee, who prepared the foundation for industrial productivity in advance.
Also, if we go back to the time when diplomatic relations between Korea and China were established, China had an abundance of manpower, and the Chinese government had a desire to revive China by uniting people who had awakened from their slumber, and what was important to them was the will and desire to escape poverty. It was said that there was this. Korea requires a huge investment of capital for mass production, including the share of heavy industry in manufacturing exports, so the two countries coincided when the Korean industry was looking for a new export market. Afterwards, Korea and China were able to join forces and create a huge turning point in China’s development. Under the leadership of Deng Xiaoping, China, a socialist market economy, abandoned its ideological doubts and adopted groundbreaking ideas to open its economy, absorbing its own cheap labor and abundant foreign investors. Since 1992, joint ventures (JVs) have been flowing into China from all over the world. They came together. By leasing China’s cheap labor and land, they began exporting labor-intensive products such as clothing, toys, and shoes to the world.
If so, the Indian government should consider how India can advance its industry now that generations have changed. For your information, even as generations change, what is important is the mental will of all Indian people to unite and revive India, and the will and desire to do what is important to the nation and people as one. Even now that generations have changed, the industrial productivity structure necessary for daily life has not changed. In India, at the central government leadership level, people from 28 states and 8 federations are leasing land with the belief that they will make India the best country in the world, similar to the mentality that China had when it woke up from its sleep in the past. The goal is to create common wealth by producing labor-intensive products such as clothing, toys, shoes, and smartphone assembly.
The Indian government will need to have an orchestra harmony player who will strongly conduct this research and analysis of India’s unique characteristics and industrial fields to achieve balanced development of the 28 states and 8 federal regions. It is important for Korea and India to create musical scores for powerful orchestral performances. In the process of India’s growth and development, a turning point must be created where all Indian citizens can make a leap forward by joining forces. By incorporating Korea’s strengths, we must boldly change laws and systems so that various fields can be established in India, and we must transfer the core technologies of Korea’s industries such as steel, petrochemicals, heavy chemical industries, automobiles, electronics, semiconductors and shipbuilding. We must create an environment where In addition, we must simultaneously pursue new industrial advancements such as digital era logistics and AI robots. In particular, it is very dangerous to hinder national growth by focusing only on words and ignoring the core of the current issue and ignoring actions and implementation. The Modi government’s strong determination that India must be reborn must create a turning point for India to leap forward into the 22nd century with a desperate feeling. In order for Korea, which helped China grow today, to help new India, the Indian government jointly formed a leapfrog strategy task force team to share the urgency and direction of national leapfrog with the media to create a blueprint for the entire industry and put it into practice. There is no room for discussion about its importance.
