Since China and ROK normalized diplomatic relations about 15 years ago，the economic and trade relations between these two countries have somewhat changed. In the past，they were apparently complementary and corporative. In recent years however，with rapid development of Chinese economy and technology，and changing situation of ROK economy，the gap between China and ROK in such fields as productive technology，R&D，production，sales，and industry structure etc. is narrowing. Therefore，both China and ROK face the fierce competition in the aspects of major export regions，export goods，product technology and quality. Moreover，many factors point to the reality that the situation will continue in a foreseeable future. In the area of regional economic cooperation，the bilateral economic relations between China and ROK as well as China and Japan have developed，but the regional economic cooperation in Northeast Asia is bogged down. Considering these circumstances，China and ROK should find a new way of economic cooperation，and a bilateral FTA （Free Trade Arrangement） may be an option.