South Korea’s Finance Minister says that China is a goodwill competitor for his country. 

Minister Hong Nam-ki made the comment during an interview posted on Thursday by Fitch Ratings while also addressing growing economic interconnections between the two neighboring countries. 

In the interview with the global credit rating agency, Hong acknowledged to Fitch Ratings’ Head of APAC Sovereigns Stephen Schwartz that South Korea and China are engaging in deepening competition, particularly in the field of advanced industries. 

However, Hong said that they are encouraging each other’s technological development, adding China is not so much a threat as it is a goodwill competitor. 

Explaining that the two countries are nearing completion in follow-up negotiations over their bilateral free trade agreement, Hong said the new deal will put them in a win-win situation in the investment, finance and services areas.