Factors Influencing China's Exports To Asean

In 2002, CAFT started trade between China and ASEAN ties and economic cooperation has entered a new period. Affecting the exports of China and ASEAN, and the factors at different times of the role and functioning of the ways to promote the import and export between China and ASEAN, and enhance international competitiveness of both sides, and to deepen inter-regional economic exchanges and cooperation.In reviewing some of the trade theory and trade between literature of China and ASEAN, and briefly describes the situation of trade between China and ASEAN, the paper aims to assess the effect of low price on China's export expansion, and to investigate how this effect is moderated by product differentiation and import tariff. The drivers of China's export expansion and it's sustainability are important discussion topics. This paper contributes the discussion by assessing the effect of low price on China's export expansion, and to investigate how this effect is moderated by product differentiation and import tariff. A product level analysis was conducted by using up to 3000 products over the period of 1996-2008; and Blundell and Bond Dynamic panel GMM estimators were applied. Comparison of similar factors in the trade between, China and developed countries, as well as United States, and the typical countries of ASEAN, Singapore the industry of which is relatively developed, the main findings are summarized as follows:In the trade between the china and ASEAN, export demand is not sensitive to the Chinese exports'price in general, but the export demand is more sensitive to the price in the recent period than the earlier period, when the CAFT has start; product differentiation is positively associated with exports, and it makes export demand less sensitive to the price; a low tariff protection on a product benefits to the export expansion of this product, however, the low protection makes prices more sensitive. FDI promote the trade between china and ASEAN.