Research On Economic And Trade Effects Of Establishing CAFTA To China

Economy globalization and regional economy integration have been the main tendency of the world economy. Many countries have joined the bilateral or multilateral international economic cooperation. East Asia is one of the regions in the world which has much activity. However, comparing to NAFTA and EU, the integration process of it is slow. There are "10+1" cooperation and "10+3"cooperation that are based on ASEAN. ASEAN was established in 1967.And it is the biggest regional organization in east AISA whose aim is to cooperate in politics and economy. Now, China as the biggest developing country, has been a member of WTO. After more than 20 years development, it has been a country with abundant economy strength. Now it is very important for China to join the integration organization.The geographic predominance of China and ASEAN countries, allows trade and economic cooperation to have special comparative advantages. The good relationship between the two sides, particularly after the 90's has a unique industrial structure and agricultural commodities with a strong complementary economy and a great potential in trade and economic cooperation, in November 2002 China and ASEAN signed an agreement, in which the two sides agreed to establish a China-ASEAN Free Trade Area (CAFTA) in 10 years time. The establishing of China-ASEAN Free Trade Area is not only to adapt to the trend of trade globalization, but also to meet the challenges of globalization, an do maintain the interest of the two sides as a whole. The cooperation between China and ASEAN is expected to create the most gigantic economy market, having the world's highest population. The founding of the China-ASEAN Free Trade Area would definitely promote the economic growth of the both sides, and would also make a tremendous contribution to human progress. So the establishment of China-ASEAN free trade agreement is very important to China, and it will make notable impact on China.Based on the analysis of theories, the paper tries to make researches into the economic and trade effects of establishing CAFTA to China, then the paper provides some countermeasures.This paper has 7 parts as follows: In chapter 1, the paper introduces the backgrounds of this research, the research approaches and methods and a review of related studies abroad and home are introduced. In chapter 2, some theories are discussed, including the theory of international division, international interdependence customs union and free trade area. In chapter 3, the paper analyses the realistic basis of the establishment of CAFTA, chapter 4 and chapter 5 study the impact of establishment of CAFTA on Chinese trade and direct investment. On the basis of chapter 4,Chapter 6 studies the effects that CAFTA will make on agricultural products trade. Finally, the paper provides some countermeasures from trade and investment.