[ Korea to export cars to China ]

Korea's passenger cars will for the first time be exported to China with
official import permission of the Chinese central government.
China disclosed its decision to import 5,000 cars from Daewoo Motor Co.,
this year during trade ministers'talks of the two countries
held in Seoul on June 5th.
Last year, some 50,000 Korean autos managed to find their way to China
but the shipments were all made without official permission from the
Chinese government.
In China, the central government sets each year's import quotas for but
Korea has thus far not been awarded any quata from China.
Kim Chul-Soo ,Korean Minister of Trade,Industry and Energy and Wu Yi,
his Chinese counterpart agreed to expand bilateral trades from around $30
billion in 1997.
To accomplish this target, the two countries will lower tariff and non-
tariff barriers to trade and improve the business environment, according to
Korean trade officials who attened the meeting.
The auto deal will take the form of a barter between Daewoo and the Ma
chinery Export-Import Corp. of China. In return for the auto shipments
, Daewoo will import corn and machinery parts. The two are negotiating
on the car model and export prices.
Korean officials hope the deal will pave the way for Korean automakers
to push into the huge Chinese market.
According to industry sources, Hyundai Motor is also seeking to export
1,000 new Sonata models to China.
During the talks, Minister Kim requested that China allow Korean autom
akers to produce finished cars in China through joint ventures with th
eir Chinese partners.