Trade Struct And Economic Of China Under The Free Trade Area

At present, the global economic integration has become a trend in world development, and regional economic integration as the transition and complementary form of international multilateral trading system, its development momentum is also rise rapidly, especially the development of free trade area has become the dominant form of regional economic integration. After China became a WTO member, therefore, also began to actively participate in the negotiations and signed of regional trade agreement, and participation have begun to change from the multilateral mechanism to the "two-wheel driven" of multilateral and bilateral. In the Communist Party of China’s Seventeenth National Congress, there are also clear that the idea of implementing the strategy of free trade area, which also shows that the party and government has formally increased the development of free trade area of the regional economic cooperation to the national strategic level, which will further promote the construction and development of China’s free trade area.This article is based on CAFTA to study China’s trade structure and economic effect of the FTA, it reveals the development direction of China’s trade and industrial structure and the FTA’s benefits and losses, which makes benefits for China’s participation and use of FTA and creats the new growth point for further economic development in China. This study will provide the decision basis to further participate in regional economic integration in China, and guide the implementation of the strategy of China’ FTA and choose economy that is conducive to the development of industry in China, it has important practical significance and application value for the development of China’s FTA. This article is based on CAFTA in the study of trade structure, it analyzes the changes in the structure of China’s trade under the FTA respectively from the inter-industry, intra-industry and intra-product of the three trade perspective; and in the study of the economic effects, this paper research on dynamic economic effects of China’s various departments mainly by using VAR and VEC model after China has established FTA, and CAFTA as a case is analyzed.The results show that China’s trade structure to achieve a greater change, mainly from inter-industry trade oriented to intra-industry trade, from resource and labor-intensive industries shift to capital and technology-intensive industries, and the long term FTA will not make the low end of China’s trade structure. In trade sector, FTA will increase the total exports, while increase total imports in the short term and in the long term decline. Industrial added value and employment levels in the industrial sector will decline in the short term, but it will increase after adjustment in the long run, and the decline in the average wages associated with FTA is small. In investment sector, FTA does not adversely affect the level of foreign direct investment. In short, FTA is better than harm to the economic development of China in general.