Research To The Impact Of China-Australia Free Trade Area On China’s Industrial Restructuring And Upgrading

On June 17,2015,China and Australia signed the "The China-Australia Free Trade Agreement(ChAFTA)".On December 20,2015,ChAFTA came into effect.The ChAFTA would bring practical convenience and reduce the trade barriers.Over the years,China’s economic development has been going along the "extensive" way,resulting in a lot of waste of resources and environmental damage.In recent years,this extensive mode of economic development has brought insufficient momentum to our economic growth.The industrial upgrading has become the main objectives of our economic development.This paper focuses on the impact of China-Australia Free Trade Area on China’s industrial restructuring and upgrading.It discusses the current situation of import and export between China and Australia,and examines the trade scale,structure,competitiveness and complementarity between China and Australia.And it studies the impact of the establishment of the China-Australian Free Trade Area on China’s industrial restructuring and upgrading from both theoretical and empirical perspectives.The main theory of this paper is regional economic integration theory and industrial structure evolution theory,to study the trade potential by using the gravity model and to analyze the relationship between the trade and the industrial structure of China-Australia by using the Granger causality model.And conclusions are as follows.Firstly,ChAFTA has an impact on boosting trade volume between China and Australia.Secondly,China’s import volume and structure from Australia have an impact on the level of economic development and industrial structure in China.The main innovations of this paper are as follows.Firstly,about the conception,this paper links the FTA with the industrial transforming and upgrading.There are few existing literatures that study this topic.Secondly,about the research methods,this paper uses and develops the existing model of the industrial structure and the technical level of export trade assessment.