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Our economy should be well this year, but I'm worried about China, our largest trading partner.



As the economic growth rate drops to the 5% range, it seems that the Korean economy will also take a hit.



<Reporter>



A small and medium-sized company in Anseong, Gyeonggi-do.



Creates an air circulation system that filters fine dust and blows clean air into the room.



As one of the premium products in China, export contracts are actively underway.



[Lee Kyung-soon/Eunsung Chemical CEO: I put the design in it and put it in Korean style, so I put the design there. Officetels are particularly popular because they smoke a lot, so ventilation is good.]



However, the Chinese economy is unstable this year.



China's economic growth rate, as well as foreign institutions, has been lowered by the Chinese government to the 5% level.



Excluding 2020, when the corona virus was severe, it is the lowest in 30 years.



The real estate market, which accounts for a third of China's GDP, is expected to suffer as it has already been shocked by the corona and power shortages, and large real estate developers, including the Hengda Group, are on the verge of bankruptcy.



[Other Gopinas / Chief Economist of the IMF: The Chinese government's fiscal tightening was somewhat stronger than expected, and furthermore, the real estate recession led to a slight downward revision of the growth forecast.]



If China's real estate market declines, it is expected that exports to China will decrease, and the low-priced raw materials left over from China will spread to the world, causing a considerable blow.



If house prices fall and Chinese consumers close their wallets, exports of cosmetics, groceries and automobiles could also suffer.



That's why we need to rethink our strategy to keep up with the latest Chinese consumption patterns like luxury and well-being.



[Park Min-young / Korea International Trade Association Beijing Branch Manager: China is changing into a manufacturing powerhouse and consumer power represented by G2 instead of a production base using low wages in the past.

At this time, Korean companies' export strategies to



China

should also be approached by segmentation.] In the

G2 conflict, the pressure to choose between the US and China remains a factor in the Korean economy's instability.



(Video editing: Park Ki-duk, screen provided by: Korea International Trade Association)