The Trade Effects Of China - Asean Free Trade Area Is Fully Completed

China - ASEAN Free Trade Area commenced on full scale in January1,2010, covering China, six old ASEAN member countries (Singapore, Brunei, Malaysia, Thailand, Indonesia and the Philippines) and four new ASEAN members countries (Vietnam, Myanmar, Cambodia and Laos), a total of 11 countries. The establishment of China - ASEAN Free Trade Area exerted positive economic effects to China, like bringing trade creation effect, improving international trading environment, promoting western development and enhancing China's ability to attract foreign investment and so on. But China also suffered deficit with ASEAN, some industries being adversely affected and other negative effects it brought in the meantime. For ASEAN as a whole, although the establishment of China - ASEAN Free Trade Area had an impact on some poor countries, but it also brought many positive influences to ASEAN, like having great trade creation effect, promoting regional economic development, strengthening the capacity of ASEAN to attract foreign investment, helping ASEAN countries to maintain stability and so on. In terms of the old members of ASEAN, the establishment of China - ASEAN Free Trade Area expanded their trade and trade surplus, deepened economic cooperation with China and provided a new area of investment for them. For new members of ASEAN, the establishment of China - ASEAN Free Trade Area brought more direct investment from China, increased their trade volume and trade deficit with China at the same time. Therefore, in order to promote the China - ASEAN Free Trade Area, China needs to strengthen communication and cooperation with ASEAN, speed up industrial restructuring, make appropriate bilateral trade rules and eliminate trade barriers gradually.