Research On The Relationship Between The Free Trade Zone Strategy And China's Economic Development

Since the Financial Crisis broke, the international trade has grown slowly which was affected by the continued downturn in the world economic development. The environment of the international economic development intensifies the economic multipolarity. In the situation trading system represented by WTO stagnates, the countries begin to expand the opening- up, in the same time regional economic development turned to the construction of free trade area. Since then, regional economic development has been grown up rapidly. The development of world FTA strategy affects the pattern of the economic world, at the time the developed countries fall into the financial crisis; the developing economic entities are changing the global economic pattern as guiders through the development of the FTA strategy. In this background, the economy of C hina is getting through the in-adaptability stage that is because economic developing model is transforming. The major goal of the economic development is to achieve the sustained development and upgrade the economic structure by expanding ?reform and open?; besides, in China's New Normal, it is the key to attain the sustainable development goal. C hina is in the exploration and learning phase in the free trade zone construction. China is in the primary stage in the constructing way of FTA and FTZ. C hina's FTA global strategy pace with the domestic FTZ strategy, so the developing strategy is to provide a powerful guarantee for the successful transformation of C hina's economic development model while working to participate in the new round of global economic reconfiguration. FTA strategy is to develop our country in the New Normal, to expand reforming and opening, to carry out the comprehensive economic reform, to accumulate the experience for new economic developing model. Under the new normal situation of China's economy, foreign trade is the main driver of China's economic growth, how to implement the FTA strategy to promote foreign trade growth will be the basic question. Therefore the paper analyzes FTA strategy based on foreign trade angle.The analysis of the paper starts from the international trading, links the FTA strategy and China's economic development together, based on trade flow, trade effect and economic development. First, the writer uses China- ASEAN(2000-2012) data for sample, using the gravity model to analyze the data, we can draw a conclusion that although the distance factors have an impact on trade free trade zone, but in the free trade zone, reasonable factors such as the implementation o f free trade agreements have a good impact on the economic development for partner country or region. Second, the writer uses China – Chile(1994-2013) year data as sample, the BalaSSa model to analyze the data, we can draw a conclusion: China has a slight trade diversion effect in the trade area, but take political and resource factors into account,China get the benefits in the trade Area. Last but not the least, the writer uses China- ASEAN(1994-2013) year data as sample, a regression model to analyze t he data, we can draw a conclusion : C hina-ASEAN foreign trade plays a significant role in promoting China's economic growth. Based on the above analysis and three empirical analysis, the writer gives policy recommendations according to the current development status.