Research Laos And China On The Economics And Trade Relation Under The China-Asean Free Trade Area

Due to the continued integration of the global economy, the economic importance of building block become increasingly prominent, much of the countries started building a Free Trade Zone to expand the regional economy, while others are in their way of a bilateral agreement to build the regional economic body. This model can not only eliminate trade protection between the countries, but also help to optimize capital and labor costs and to achieve optimal allocation of resources, thereby bringing together the economic block in many countries.In 90s of the last century China, Japan, Korea and other representatives of Asean countries started to actively promote a new form of development to promote the further development of Asean economies. After entering in the new millennium on 4th November 2002 many Asean countries and China signed the "China-Asean framework agreement on comprehensive economic cooperation." In early 2003 China and the Asean countries started negotiations for Free Trade Area. In 2010 it is decided to build the CAFTA and to complete the China -Asean Free Trade Area. After two years of development, CAFTA launched "Trade Agreement of Goods" which was the official implementation of the tariff reduction work into in-depth development stage, and also marked the China-Asean Free Trade Area Construction achieved some success.This article has relevance and importance first, from the theoretical level currently China and Laos are two socialist countries. Cooperation between the relevant countries is relatively small, especially on the establishment within the framework of the system even less. Then this article is the study of two countries in the framework of cooperation under the system-based, so it is possible to provide a reference to the theoretical research in this area. Secondly, from a practical sense perspective, since the core of the research paper is based on the following iramework to explore economic and trade cooperation between China and Laos. The two countries greatly attached by building the first Free Trade Zone and both countries giving a lot of importance according to their own point of view. And as the socialist country Laos has a better relationships with China through cooperative efforts. It will contribute the formation of cooperation under the framework of the sample. In recent years Laos in support of the advanced socialist system of the world, the economic growth rate has been in the forefront. Normalization of trade between both countries increasingly close since the 1989.In this paper, literature research methods, methods of historical research, empirical methods and other methods in the context of Asean Free Trade Area of the old economic and trade relationships presented. Paper architecture is divided into seven parts, the first part of the introduction tells the main background of this research, relevant literature review and study the contents and positioning; then, involving the economic and trade relations between the two countries related to the old theory research related to the concept of economic integration, integration and globalization and economic integration under the influence of economic block; based on the analysis of China and Asean economic relations and many national quality inspection processes, and the current status analyzed the two economies, as well as the history and evolution of the framework are described. Especially its main contents and characteristics, and the Early Harvest Program system are described; subsequent history of economic development in Laos and China. The two countries were analyzed, described the general situation in Laos and the priority of the country, and from different historical periods analyzed the economic relations of the two countries. At the end of the chapter describes the development of Laos and China economy. According to the old relationship of the foregoing analysis, focusing on the trade in these two countries, such as the balance of trade, import and export status, problems and major structures. The first deals with a main structure and the complementary nature of the old trade products. Then these two countries of their status in the system to start on. Next is China and Laos analysis of investment, because in comparison to Laos, China’s economic level is high, and relatively high proportion of investment in China. China and Laos are a number of other economic organizations elaborate case of cooperation, and some of the problems were analyzed. Finally, the main indicators of economic data continues to promote old growth empirical analysis. On the basis of the framework under the system, the kind of economic cooperation strategy should be carried out in Laos, as well as set forth in this mode can offer to Laos economic development opportunities and challenges, and elaborate problems. Laos in the environment arising thereby propose appropriate coping strategies. Lastly this study analyzed the old economic and trade framework under the background of deepening the further development of the existing policies needs to be reformed.