After China's reform and opening in 1978, the Chinese economy has quickly grown over thirty years. China has grown itself as the world's second economic power. China faced situation changes to practical cooperation relationships between two nations through historical diplomatic ties of Korea and China on August 1992. As the amounts of trading between two nations constantly increase, two nations' economic influences are beyond close relationships and they become indispensable counties.
Korean enterprises actively started entering China after diplomatic ties of Korea and China. At the time when China joined WTO on 2002, their China market entry started being more active. China was recognized as the good country for investments because of advantages such as low labor costs and cheap raw material costs and geographical proximity. According to this, Korean large enterprises
and its small and medium-sized enterprises actively have entered China as a production site to focus on manufacturing industries. The Korean government has constantly implemented support projects for China market entry of Korean enterprises as its support policies. However, government's support policies have been mainly planned for manufacturing industries because their China market entry has been conducted for manufacturing industries. China constantly increased its labor costs and raw material costs. Korean enterprises in China markets started stopping productions in China. Depending on advancement of Chinese industry structures and its government's keynote policies for domestic centered consumption, China are transformed into the world market, not the world factory. The rates of the third industry expressed as the service industry were beyond the rates of the manufacturing industry. These changes can be also checked from industry types of Korean enterprises entering China. Rather than focusing on existing manufacturing industries, the China market entry of service industry enterprises of various fields such as education and medical service and IT service and game and culture contents tends to increase.
Then, how are government's support policies for enterprises that entered China?
Movements of changes in terms of government's support policies for enterprises that entered China have occurred before the recent few years. However, supports for entering small and medium-sized enterprises aboard still focus on manufacturing industries and are accessed as lack of diversity by industry.
Government's some support policies for small and medium-sized enterprises should be quickly applied in rapidly changing environments inside and outside. However, the direction of a big flow from long term-views should be chosen and views on policies should be kept consistent to be suitable for the direction. Current situations of China markets are the same as described above. As China develops into the advanced country, its service industries are gradually advanced. Consistent interests in China markets that will develop into the world's biggest consumption market should be kept like service industries create high added value in comparison with manufacturing industries.
For doing so, the government should expand its support policies by focusing on medical service/health care and education/e-learning and culture contents and tourism and design that can be considered as promising service fields. Also, the government should be interested in various types of service export supports such as a service model export other than existing export centered support policies. There are lots of excellent policies and systems in Korea. The exports of these public services or policy services should be paid attention to. Lastly, the rates of participation in private knowledge service institutions increase in terms of implementation on government's support policies and customized services suitable for directions that small and medium-sized enterprises want should be offered through specialization and high quality services of its support policies. Through this,
Service industries should be constantly promoted and developed so that government's support policies focusing on existing manufacturing industries can fulfill balanced developments in manufacturing and service industries at the national level.