The Feasibility Study Of Constructing China-South Africa Free Trade Area

The free trade area is the most representative one among the various modes of regional economic integration.With its lower threshold,flexible multi-dimensional cooperation,and strong political signals,many countries(regions)promote international economic cooperation.And use it.China has already signed 16 free trade agreements,involving 24 countries and regions.Signing more free trade agreements is an important part of China' s promotion of an all-round opening-up strategy.South Africa is the most representative country in southern Africa,and it is the leader of the Southern African Customs Union,which has a long history of ownership.The feasibility of researching and constructing the China-South Africa free trade zone will not only provide new ideas for China' s cooperation with Africa.At the same time,it can also respond to the national strategic concept of "One Belt and One Road"construction,which has important practical significance.Based on the theory of international free trade and the theory of regional economic integration,this article first briefly reviews the history of the development of China's South Africa's economic and trade relations,and then proceeds to the current stage of China' s trade flows and commodity structure in South Africa and South Africa' s policy of attracting foreign investment.Analyzed and identified some obstacles that affected the development of trade between the two countries.Then the paper analyzes the feasibility of establishing a free trade zone in South Africa from the three aspects of economic openness,comparative advantage,and trade complementarity,and finally uses the GTAP model to empirically analyze the economic benefits that the South African Free Trade Zone may bring to China.influences.The analysis finds that China and South Africa have their own factor endowments and comparative advantages.They have their own division of labor and characteristics in international trade.China has competitiveness in labor-intensive products and mechanical and electrical products,while South Africa is in natural resources such as minerals and timber.The export has a comparative advantage,and the trade complementarity between the two countries is relatively high.The GTAP model simulation of both countries after the completion of the FTA has a strong positive effect on both sides.Therefore,the establishment of China's South Africa Free Trade Area is conducive to deepening cooperation between the two countries,jointly coping with international risks,and promoting bilateral economic and trade development.