Recently, the Chinese economy has made progress at such a formidable speed that it has emerged as a force that exerts a great influence on South Korea’s prosperity and the peace on the Korean Peninsula in the 21st Century. As an influential force on the South Korean economy, China has secured the No.1 position, pushing aside the U.S. With the heightened status of the Chinese economy, a new economic order is formed in Northeast Asia, making it necessary to reformulate the traditionally cooperative relations among Korea, the U.S. and Japan. 
Following its entry into WTO in 1999, China has accelerated steps to incorporate itself into the world economy, promote FTA’s with ASEAN countries, and make economic cooperation with Central Asia, apparently as part of the attempt to place itself in the center of the new economic order for Northeast Asia. Internally, China has taken steps to make its industrial structure more efficient with stronger emphasis made on market functions, and reduce factors that run against market functions, such as attempts for protection of provinces, in the process of industrial sophistication. 
It is expected that such changes in the Chinese economy will cause a shift in its internal competition structure, i.e. from the inter-regional competition led by local governments to the market-centered competition, thus accelerating sophistication of the industrial structure centered around local specialty products, and that such a shift to methods focused on qualitative progress will go a long way in enhancing the country’s international competitiveness one notch higher. 
The currently rapid sophistication of the industrial structure of China is expected to have a conspicuous impact on Gyeonggi-do, Korea. That is, markets will be expanded amid the increase in the demand for intermediate goods led by primary/secondary raw materials and the competition will get fiercer amid rapid growth of competing industries. Especially, mutual cooperation and competition between the Korean province and China is expected to get closer and fiercer, as the information telecom technology-based electro-electric business and carmaking businesses which the Korean province has regarded as its growth engines have been designated by the Chinese government as core strategic businesses to be developed in the early 21st Century. 
In such circumstances, Gyeonggi Province needs to prepare countermeasures against the impact from the neighboring country’s attempt for sophistication of its industries based on close analysis of China’s regional and industrial development prospect. Its countermeasures by industry should be broken down into industries superior/inferior/neck and neck in competitiveness. For those superior in competitiveness, it is necessary to set up a strategy of jumping on the bandwagon of market expansion related to the sophistication of Chinese industries. For those inferior or neck and neck in competitiveness, there is a need to adopt a strategy for sophistication of the industrial structure centered around core businesses and for adjusting the speed of phasing out non-competitive businesses, along with the effort to minimize the problem of hollowing out of industries. 
The analysis of the competitive and inter-complementary relations between Gyeonggi Province and major provinces of China shows that the Korean province has the closest relations with Guangdong Province, but the remotest relations with Shandung Province, which is known to have attracted more Korean businesses from Gyeonggi than any other provinces in China. 
Gyeonggi Province needs to set up a strategy for exchanges and cooperation with provinces of China based on overall industrial and geographical factors and in consideration of the status of businesses from it operating in that country.