Analysis Of China's FTA Strategy And Economic Growth Effect

In the 1990s,regional economic integration developed rapidly.As the multilateral trade talks represented by Doha negotiations deadlocked,more and more countries chose flexible FTA instead and established FTA network for more favorable and solid trade environment.China also adapted to the international trend and focused on the development of FTA after joining the WTO.The development of China's FTA was later than Japan and South Korea but grew fast.So far China has signed and implemented 14 free trade agreements and FTA members state across different continents.In the process of analyzing the development of China's FTA,this paper divides it into the research period of cooperative mechanism,the early period of construction of free trade area and the period of comprehensive construction and summarizes the characteristics of each period.During the research period of cooperation mechanism,China's main purpose is to strengthen political and economic mutual trust with other countries and to accumulate the experience of negotiation through active participation in regional economic and trade meetings.At the beginning of the construction of the FTA,China mainly targeted developing countries,improved the level of trade liberalization by phases and built a number of FTA with landmark significance.In the comprehensive construction stage,China has enough experience and a high market opening level.Therefore,free trade agreements are mostly "package agreements" and signed personalized based on trade between the two countries,showing a more perfect FTA strategy.At the same time,through the analysis of the construction process of China's free trade area,we can understand the connotation of China's FTA strategy.Although the FTA strategy was proposed lately,it has always been represented through the construction process of China's FTA.In this paper,the economic effects of China's FTA strategy are analyzed empirically by means of the gravitational model and the relevant data from 2002 to 2015.The empirical results show that the impact of China's FTA construction on bilateral trade is positive under the premise of the co-existence of trade creation effect and trade diversion effect.China's FTA has economic growth effect which affirmed the positive role of China's FTA strategy.However,the economic growth effect of China's FTA is still limited although it is lightly higher than that of Japan.Also,through the empirical analysis of the economic effects,it is found that the economic growth effect of single FTA is not obvious,which means that there is still room for further improvement.Finally,this paper puts forward some suggestions on how to promote China's strategy of FTA by combining the characteristics of China's free trade area construction,the empirical results of economic growth effect and the comparison with Japan and South Korea.China should continue the existing strategy of FTA and speed up appropriately,promote the further promotion of FTA negotiations and improve market opening level with the FTA members,learn from Japan and South Korea.On the one hand,China should improve the relevant mechanism and strengthen the training of talent to build quality team.On the other hand,China should make the local government and enterprises participate in FTA and get more more real benefits.