Study On The Construction Of China-India Free Trade Area

Economic globalization and regional economic integration which are irreversibleand coordinated with each other have been two mainstreams among those of the worlddevelopment. When the countries all over the world try to promote trade liberalizationthrough multi-lateral trade system, they not only focus on the inter-regional economiccommunication and cooperation, especially between their neighbouring countries, butalso positively participate in the process of regional economic integration. Moreover,since the multi-lateral agreement negotiation within WTO framework has progressedslowly, concluding bilateral trade agreements and establishing free trade areas havebecome priority options for most countries to develop their economies further. Judgingfrom the processes of the two countries’ economic development, both China and Indiahave benefited from the world economic globalization and regional economicintegration respectively. Therefore, for both China and India, which are the two biggestand the fastest growing countries in Asia, it fits with the two countries’ practical andlong-term interests to construct China-India Free Trade Area.