In Discussion On The Position And Effect Of "Pan-Pearl River Delta" In The Establishment Of ASEAN-China Free Trade Area

Since the introduction of ASEAN-China Free Trade Area (ACFTA) in 2001, it has become a hot topic of all communities, also attracting attention from the academic society. The design time for establishing ACFTA is ten years, can the project be completed on time? As a regional economic cooperation among developing countries, will it reach the expected effect? This paper hopes to answer these questions, as such, the core theme will be on what kind of strategies be taken in order to effectively push forward the establishment of ACFTA. Based upon this idea, the paper adopts a strategy model based on that the "Pan-Pearl River Delta" (herewith "PPRD") takes the key role, with equal efforts from governmental and non-governmental sectors, economic, cultural and political means taking effect, while starting with trade expansion within ACFTA, taking the investment into ACFTA as a breaking point, with establishing multi-nationals as a basic format, and to bring full use of the leading role of Guangdong-Hong Kong-Macao. This paper purports that this model can be a strategic option for effectively reinforcing the establishment of ACFTA.ACFTA is a free trade area built among developing countries, despite this invention meets the development trend of the world, however, it will encounter many problems and challenges. In short, objective condition is less than subjective one, economic condition is less than political one, and comprehensive condition is less than partial one. This paper will analyze both the advantage and disadvantage, making reference to some relatively successful experience on other free trade areas/zones, so as to better discuss the objective, principle and priorities of ACFTA.The basic viewpoint of this paper is that the "Pan-Pearl River Delta" (herewith "PPRD") shall take the key role. Firstly, in the establishment of ACFTA, PPRD enjoys regional advantages which do not owed by other domestic regions, thus playing a role which cannot be replaced by other regions. Secondly, in the establishment of ACFTA, in some fields and areas, PPRD can take a leading step to experiment boldly. Thirdly, PPRD should build up an self-awareness to deeply understand its position and role in the establishment of ACFTA, so as to conscientiously create all favorable conditions to push ahead the establishment of ACFTA. Finally, the economic cooperation and development among PPRD and ASEAN countries will be a huge push for the establishment of ACFTA. The strategic design of "PPRD will take the key role" is an enlightment from regional-economics, especially from the geographical-economics. In addition, this design also enjoys a practical basis on strong economic strength, and on the existing sound relationship in terms of economic and cultural and personnel exchanges and cooperation. This paper also will touch on the meaningful effect of PPRD in its "key-role" position and effect of establishing ACFTA.The establishment of PPRD is also at its initial stage, it has not become a regional economic organization in real terms, it still requires all kinds of efforts to play the"key-role" position and effect. Therefore, the most imminent task is to optimize PPRD, to transform the potential advantages into practical advantages. The goal of optimizing PPRD is to form a closely-linked and integral entity of economic system, a domestic regional economic organization, so as to compliment each other within PPRD, to share resources and to coordinate a sustained development, on such a basis, we can further build up a close cooperative relationship with ASEAN countries. The optimization of PPRD comes from both the internal and external forces. The process will start with infrastructure to improve regional transportation, telecommunication and information network, in order to build a large market to promote regional economic and trade cooperation, and to enhance the economic strength and to bring full use of its leading role. PPRD will base its development goal on closely-linked cooperation format.Another important viewpoint of this paper is that governmental and non-governmental sectors will taking an equal role. PPRD is a concept of regional combination, the leading role and effect of PPRD shall be realized through all players including governmental and non-governmental factors within the region. These two main sectors should find a way to cooperate and at the same time should delineate their different scope and responsibilities to play different roles. This paper also purports "intervention theory at initial condition", and thus deems it as theoretical base for the critical effect played by governments. This paper believes that in order to effectively push forward the establishment of ACFTA, we must take necessary intervention at initial conditions, i.e. to bring use of advantages of Hong Kong's financial and modern service industries, to activate the free capital at PPRD, and to take the projects or industries which PPRD enjoys advantages over ASEAN countries as a media or conveyer, to form multi-nationals with core companies as basic format to invest in ASEAN countries. This paper also studies the different ways of intervention at initial conditions, and also discusses the effect of non-governmental in pushing forward the cooperation among PPRD and ASEAN countries, and the related means and measures for such an effect.Last but not least, to bring use of Guangdong Province-Hong Kong-Macao's leading effect within and outside PPRD constitute an important viewpoint of this paper. This paper opines that being a relatively developed region within PPRD, Guangdong-Hong Kong-Maco should take a leading role on the internal optimization and on strengthening economic and trade cooperation among PPRD and ASEAN countries. The paper defines the leading effect of Guangdong-Hong Kong-Macao, and also deliberates on the means and measures of enhancing cooperation and of the leading effect by Guangdong-Hong Kong-Macao.