The Impact Of Competition And Complementarity Between China Japan And South Korea’s Manufacturing On The FTA Construction

Since the second half of the last century, the global economic regionalintegration springs up quickly, and spreads to the world, which likes a great singlespark starting a prairie fire. From developed European and American westerncountries to the backward Asian, African and Latin American countries,they allestablished free trade area in varying degrees and different levels. Focus on East Asia,everything has changed already. Japan is no longer the leading pack past champion.South Korea, as one of the "Asian tigers", has now entered the ranks of developedcountries. China has maintained high growth, since the reform and opening up, whichcontinues to extend the magic.It has become the second largest body in the worldeconomy and the largest national trade country in goods. As of the end of December2011, the total trade volume in China, Japan and South Korea accounted for morethan30%of the world. Thus, once CJKFTA came true, it will have far-reachingeffects on world economy, and even the world economy pattern will change therefore.However, despite the amounts of investment and trade among China Japan and SouthKorea, becoming more dependent on each other, continue to rise. The construction ofCJK FTA went forwards unsuccessfully. With the stagnation of Japan anddevelopment of China and South Korea, once complementary industries turned morecompetitive. Under the same export-oriented guidelines policy, the three countriesfight for limited resources, which lead to increasing inevitable conflicts and frictions.Coupled with delays in the historical and territorial disputes unresolved, along withthe United States and other foreign forces butted in, all above factors lead to CJKFTA a bright future, but the road twists and turns. Therefore, how to find abreakthrough and relevant points on CJKFTA, and control over economic and traderelations comprehensively between East Asian countries, helps to strengthencooperation with each other, in order to create a win-win situation.This paper first describes the theory of free trade, followed by lists of thecurrent developments in China Japan and South Korea free trade area, the opportunityto face the challenges and expectations of the effect and impact of CJKFTA. Then usethe relevant competition and complementarity theory to analyze finishing manufacturing databases, in a combination of quantitative and qualitative method, inorder to find a breakthrough in the construction of CJKFTA ultimately. Finally, thispaper analyzes and studies carefully difficulties and challenges currently based inCJK FTA. At the same time, it devotes how to strengthen cooperation and removeimpediments gradually, In the end, propose solutions and policy recommendations topromote sustainable development on CJKFTA.