Analysis Of The Economic Effects Of The Establishment Of Sino-Russian Free Trade Area

Since the 2008 financial crisis, the world once become stagnant or even became recession, many countries have to seek their own way to stimulate economic recovery. Although the accession to the WTO member countries in trade has great convenience and advantage, but in nowadays, WTO provides members the most-favored-nation treatment and gradually reduces tariffs to the level of developing countries, these characteristics make it cannot fully fulfill the demand of world trade. And regional economic integration within the region, with its wide range, low tariff level or even none, flexibility and other advantages, in recent years there is an international tide of regional economic integration. We can say that in today's world economy development needs economic globalization and regional economic integration. As free trade area is the main form of regional economic integration, it had got great development in China recent years. At present, China and many countries including New Zealand, Singapore, the association of south-east Asian nations had signed free trade area, and is establishing the free trade area including China-Costa Rica, China-Australia, China-Switzerland. By the way, the negotiation between China, Japan and South Korea free trade area have greater progress. However, the economic or political relations between China and Russia in recent years have become more and more close, but the establishment of free trade area between these two countries has been stalemate and mire, not even closer. The governments and scholars of China and Russia have focus on how to establish free trade area and overcome difficulties over the years. In the long run, the establishment of free trade area between China and Russia are win-win policy and mutually beneficial strategic moves. First of all, from the aspect of economic effect and trade space, the volume of trade of China are more than $4000 billion in 2014, compared to bilateral trade between China and Russia is just $88.4 billion in 2014, this is not very much. At the same time we also can see that in the future the possibility of building free trade area between China and Russia is higher and has huge potential. What's more, from strategic perspective, since the crisis broke out, the west which led by the United States, restrictions for Russia which is mainly composed of economic sanctions. We can say it has its certain necessity for establishing free trade area.First this paper used the literature analysis method, analysis the geographical basis, economic basis and policy basis of free trade area between China and Russia; Second this paper using analysis method to analysis the economic effect of Sino-Russia free trade area; Finally this paper used comparison analysis to compare the result of quantitative analysis, and provide practical advice for free trade area between China and Russia. With economic and strategic relationships between Russia and China become more and more closer, China and Russia are coming into the "honeymoon period". Therefore, the analysis of economic effects will help to the building of free trade area between China and Russia and will also make these two countries'economic develop faster and sustainable.