Research On The Issues Of Building Free Trade Zone Between China And Russia

Under the major changes in the global trading system, China proposed the “Belt and Road Initiative,” regional economic integration is becoming an increasingly important trend. At present, China has signed fourteen free trade agreements, involved twenty-two countries and region. Sino-Russian bilateral trade in 2015 amounted to 69.03 billion US dollars, down 27.5%. However, China is still Russia’s largest trading partner in its share of total trade rose 11.3% from the same period last year to 12.1%. After joining the WTO, Russia is also being stepped up with other countries in the preparation and negotiation of the FTA. The situation in the border trade and energy trading with the Russian Far East and a region in Northeast China has fallen behind the development trend of regional economic integration. Develop and deepen bilateral economic and trade cooperation between China and Russia has become a very meaningful strategy. Build a free trade zone with the more urgent bilateral consultations, which will strongly push forward the Sino-Russian economic and trade cooperation to upgrade.In this paper, the information is collected from relevant articles and it is used as drafting basis for the use of relevant theoretical basis, using the absolute advantage and comparative advantage theory, theory of elements endowment theory, theory of Customs Union, common market theory and big market and free trade zone effect theory and the related theory as research foundation. First of all, explaining the necessity of building a free trade area between China and Russia from the economic relations, political mutual trust, national security, cultural exchanges and other aspects, and also carry out a feasibility analysis of building a Sino-Russian FTA from the perspective of trade complementarity. Furthermore, analyzing the trade relations and trade cooperation between China and Russia based on the evolution and current status of Sino-Russian economic; and especially to analyze bilateral trade system and order according to the size and structure of the trade, investment amount, and the neighborhood. Again, through trade gravity model of bilateral trade between China and Russia in the influencing factors of quantitative analysis, focuses on the analysis of the economic effects of Sino Russian free trade area, separately carries on the elaboration from the Sino-Russian free trade zone static effect and dynamic effect. Finally, a detailed analysis of other free trade zones, China and Russia put a forward suggestion for FTA.This article studies mainly on specific factors bilateral trade between China and Russia based on the main perspectives of economic effect analysis of the problems of the Sino-Russian free trade zone. And also, thinking about the Sino-Russian free trade zone. China and Russia are building a free trade zone system is a complex process of bilateral economic and trade cooperation is of great significance, especially promoting the transformation and upgrading of the Northeast region in China. Finally, hope that this study can play a positive role in promoting the construction of Sino-Russian free trade zone.