In the past ten years, the trade between China and South Korea has developed significantly, and there have also been corresponding progress in environmental protection, tourism, etc., which makes the economic and trade development prospects between the two countries bright. Since the financial crisis in 2008, the growth rate of the global economy has relatively slowed down, while the trade cooperation between China and South Korea has been further expanded. the trade cooperation has positive and progressive significance for the economic development of both countries. However, the current spread of protectionism between China and South Korea in trade has led to the gradual intensification of market competition, coupled with historical factors and other reasons, which have greatly affected the healthy development of trade between the two countries. Therefore, this paper mainly studies the economic effects between China and South Korea from the perspective of global value chain.

At present, China has nearly 42million Small and Medium-sized Enterprises, accounting for 99% of the total number of enterprises in China, contributing 60% of GDP to the country. The proportion of trade volume of Small and Medium-sized Enterprises in international import and export trade reaches 65%. They contribute more than 51% of the tax revenue to the country and provide more than 80% of the jobs. Small and Medium-sized Enterprises have become an important force to expand employment, promote innovation, prosper economy and adjust economic structure. However, since the reform and opening up, China’s Small and Medium-sized Enterprises in the process of market economy development gradually from domestic to overseas. Through a large number of domestic Small and Medium-sized Enterprises continue to open up overseas markets to participate in international trade, which promotes the rapid growth of China’s economy, however Small and Medium-sized Enterprises are also facing a series of problems in the process of developing overseas markets. Relevant governmental subdivision needs to pay attention to this and provide help for the healthy development of Small and Medium-sized Enterprises.