Study On The Trade Relations Between China And Pakistan Based On China-Pakistan Free Trade Area

As the world economic globalization and regional economic integration process has accelerated, mutual opening of national economies and the degree of integration increased substantially. Because of their low transaction cost, bilateral or regional cooperation has become an important policy option for most countries in the world at present.China and Pakistan have a long history of economic and trade relations, and the establishment of China-Pakistan free trade area provides a system protection for the development of economic and trade cooperation between China and Pakistan. So it is of great significance to study the development of the economic and trade relations between China and Pakistan after the establishment of China-Pakistan free trade area. In this paper, based on a comprehensive systematic analysis of the status quo of economic and trade cooperation, the export market structure, export structure and the economic and trade relations after the establishment of free trade area between China and Pakistan, complementary and competition natures are analyzed. And it made an empirical analysis of the trade and investment effects of China-Pakistan free trade area, to identify the prospects for the development between them, finding out the problems existing in the development of economy, and then to put forward corresponding countermeasures and suggestions.The results show that: First, there has been broad cooperation foundation in trade, contracted labor and investment between China and Pakistan. Second, economic and trade cooperation is of high complementary between China and Pakistan.Third, from a trade perspective, the establishment of a free trade area to promote the bilateral trade is not very obvious. But as time goes on, promotion in trade gradually show. In terms of investment, after the establishment of the free trade area, investment creation and diversion would give rise to local and foreign investment increased, but because of the two different capacities to attract foreign investment, coupled with external factors such as social instability, the distribution of investment between the two countries is not balanced. Finally, drawing on the experience of ASEAN free trade area will be conductive to resolve the problems in economic and trade cooperation between China and Pakistan.