An Empirical Research Of China FTA Strategy

In the context of economic globalization,integration of regional economic hasbecome trend of the world economy at present.But on the one hand,because of the slowprogress of multilateral trade negotiations under the WTO famework agreement.On theother hand,with the negative impact of the U.S.subprime mortgage crisis expanded to allover the world,many countries economy’s scale shriked.In order to revitalize thedomestic market,some countries have adopted trade protection one by one.Tradeprotectionism began to raise its head.Facing the complicated and changeableinternational environment,many countries have to accelerate the peocess of regionaleconomy integration.China has signed CEPA with Hong Kong and Macao as early as in2003.China started the process of building the ASEAN Free Trade Area in2002.Sincethen the Free Trade Area construction moved forward steadily.On the seventeenth PartyCongress in2007,government officially proposed strategic direction of the Free TradeArea,it played an important role in dealing with the adverse impact of the global financialcrisis.China-ASEAN1Free1Trade1Area1was1established1in12010,China-Chile,China-Pakistan,China-New Zealand FTA have come to force for several years,so it is worthstudying the impact of Free Trade Area.Under this background the paper expounds the theoretical and realistic meaning ofstrategy of the Free Trade Area.With the popular of the Free Trade Area,if China doesn’tfollow with the trend of regional economic cooperation,it will inevitably fall into theunfavorable international environment.China as the largest developing country,Chinamust accelerate the development of the Free Trade Area strategy.As the aspect ofeconomy,it is not only good for the scale of China’s trade expand,but also help topromote Chinese enterprises to improve production technology,as to ensure the long-termdevelopment of foreign trade.As the aspect of political,the strategy is able to consolidatethe political status of China as an emerging power in further.The first part of the article describes the domestic and foreign scholars for the FreeTrade Area of the study.Whether domestic or foreign scholars,the study on China FTAstrategy is less.The second part is based on customs union theory,it expoundes the theoryof the Free Trade Area.The third part gives the reason for China FTA strategy,development process,development status,development characteristics and thereality effect of FTA.It introduces China FTA strategy in vertical all-around.The fourthpart takes China FTA strategy as the mian object of study,establishing the Balassa modelto make empirical research.It analyzed the trade effect of China FTA strategy combiningwith the existing study.Finally,it presents conclusion and makes relevantrecommendations for the development of China FTA strategy in further.