Trade Situation And Influencing Factors Between China And Asean

China-ASEAN Free Trade Area, EU and NAFTA are the first three largest free trade areas in the world. Moreover, China-ASEAN Free Trade Area is the most populous one. In 1999, Chinese Premier Zhu Rongji proposed to build China-ASEAN Free Trade Area. China-ASEAN FTA was launched officially in 2002, it will gradually reduce and cancel the tariff between China and ASEAN countries. Until 2010, China-ASEAN FTA was formally built, and 93% trading products can be exported with no tariff to China from ASEAN countries.China-ASEAN Free Trade Area was intended to promote the growth of bilateral trade. The improvement of economic power between bilateral trade countries can promote domestic supply capacity and demand. We may ask, did the FTA work in this situation? In recent years, ASEAN countries’FDI in China fluctuated strongly, Brunei’s FDI grew rapidly while Philippines’s declined, Lao’s FDI was very small. So, did the ASEAN countries’FDI in China influence bilateral trade? If it did, what’s the influences? Over the past ten years, China’s foreign trade dependence has increased significantly, whether it impacted bilateral trade or not? China was admitted to join WTO on September 10th 2001, and all the ASEAN countries have also joined WTO. What can influence bilateral trade since both countries are WTO members? And whether the trade distance reflecting trade cost and convenience could influence bilateral trade?Many research methods are used in this article. Absolute analysis method, relative analysis method and ratio analysis method are used to reflect the characteristics of import and export trade between our country and ASEAN countries in different angles. Qualitative analysis method and quantitative analysis method are used to study complementary effect and competition effect of bilateral trade between China and ASEAN countries. The expanded gravity model is used to analysis the impact of each variable to the bilateral trade. At last, we can get below conclusions:Firstly, since China and ASEAN countries started to build their FTA, the bilateral trade has grown rapidly. Especially, the growth rate that China exports to ASEAN countries has always been higher than the average growth rate that China export to the world. What’s more, bilateral trade dependence has been further enhanced. China is the largest trading partner of ASEAN, and ASEAN is the third largest trading partner of China.Secondly, complementary effect and competition effect obviously exist in the trade between China and ASEAN countries. Moreover, complementary effect is more important.Thirdly, the impact of each variable to the bilateral trade are as follows:(1) the economic strength of bilateral countries, China’s foreign trade dependence, ASEAN member’s FDI in China and bilateral countries joined WTO, these variables impact the bilateral trade greatly. (2) the trade distance, common border, port trade, construction and development of China-ASEAN FTA, these variables impact the bilateral trade less.