The Study Of "Great China Economy Circle" Economy-Trade Communion Development

In the 21st century, facing the economic multiplex development and the rapidgrowth of the integration of regional economics worldwide, East Asia is speeding upits pace of regional economy cooperation. With the purpose of building an all-aroundwell-to-do society in the first 20 years of this century, China needs to set upintegration of regional economics and taking itself as a core. This strategy means toset up a free trading area of Great China between four places across straits. Theeconomic cooperation of the free trade area faces great opportunities and challenge.Its development will influence the whole economic development of China in thefuture. It will also influence the economic development pattern of East Asia and eventhe whole Asian deeply. So the development issue of "Great China economy circle"(GCEC) becomes a focus of present.Ⅰ.The general analysis of GCEC(Ⅰ)Implication of GCECGCEC means the Chinese Mainland and Hong Kong, Macao and Taiwan forms afree trade area. This concept is first put forward early in 80s of the 20th century firstlyby Professor Zheng Zhuyuan of Indiana University of U.S.A. The purpose of settingGCEC is to realize free trading totally in the four parties across straits.(Ⅱ)Starting point of GCECOn June 29th, 2003, China and Hong Kong signed CEPA, In a certain way it is similarto the presently popular concept of "free trade area " in the world, but it includes morethan free trading area. This Protocol is an important part of the strategy of economicintegration of China. Thus it starts the progress of GCEC.(Ⅲ)CEPA historical background of origin developThe idea of CEPA came up right when Hong Kong was taking the strong attackfrom the Asia Finance Crisis and so its economy fell into recession. In 2001, Chinajoined WTO. Hong Kong is afraid of losing its advantage as the transfer repot, whichbrought up a heated discussion among people from all professionals includingbusinessmen, experts, scalars, etc. CEPA is signed by Chinese mainland and Hong Kong on June 29, 2003. The signof CEPA has been effectively promoted the trade exchange between mainland andHong Kong. And this is a good example for realization of CEPA between Mainlandand Macao as soon as possible. Ⅱ.History of Economy and Trade Development within GCEC The history of trade exchange among four parties across straits is indicated bystatistical analysis. The introduction of the history progress of GCEC includes threeparts——Taiwan and Mainland, Hong Kong and Mainland, Macao and Mainland.There is a long trade history between four parties across straits. With a fullunderstanding of the history, we can see problems and find solutions to theseproblems as soon as possible, thus laying a foundation for the realization of regionaleconomy integration early and speeding up the modernization. Ⅲ. Theoretical analysis of economy and trade development of GCEC GCEC meets the trend of regional economic cooperation and economicglobalization. By realizing investment liberalization and advancing the regionallyeconomic and technological cooperation actively, GCEC can fully take advantage ofregion integration, speed up progress of economic integration, and promotesustainable economy development of all the members. That can keep GCEC a lasting,steady, rapid, healthy development. (Ⅰ)Theoretical analysis of GCEC The goal of GCEC is to realize the liberalization of trade between four partiesacross strait and set up tariff alliance or free trade area. The essence of cooperation offour parties across straits in economy and trade is to form specialization andcooperation naturally under the condition that there exists difference in resources,economic factors, economy foundation, market demand structure and geographicalposition in order to Predominance complementarities. (Ⅱ)Integration of four parties across straits under the background ofeconomic globalizationGlobalization is the main theme of world economic development. Under thespecial relation between "One Country and Four Areas ", in order to face thechallenge of the economic globalization actively and speed up economic developmentof China, we have to integrated reasonably economy and trade between four partiesacross straits, promote the liberalization of trade between every member. And finallywe can realize "Great China free trade area"and regional economy development asintegration. On the basis of common general favor tariff effect, economically cooperative andcomplementary economic effect of industry chain, trade facilitation service effect, andregional economy integration effect. The thesis states systematically the economicbenefits of setting up Great China free trade area between four parties across straits. Ⅳ. Business opportunities brought by CEPA This chapter introduces the important meaning of CEPA and the businessopportunities brought by CEPA. The gradual implementation of CEPA will helpbloom foreign trade and economic development between Chinese Mainland and HongKong, Macao area and also attract more multinationals to make strategic investmentin Hong Kong and Macro. First of all, CEPA closes the cooperative trade betweenGuangdong and Macao, advancing the cooperation between Guangdong and Macao toa new stage –the Establishment of "Zhuhai and Macao trans-border industry area ".Secondly, CEPA also benefits consumers --Shenzhen has set up zero tariff markets topromote close cooperation between Guangdong and Macao and strengthen thecooperation of distribution between Guangdong and Hong Kong. Finally, CEPAexpanded further the cooperative field of Guangdong and Macao. Ⅴ. The analysis of the economy and trade trend of GCEC (Ⅰ)Future plan of the economy and trade of GCEC This chapter analyzes the obstacles of economic integration in termsof .economical and political factor. (Ⅱ)Prospect analysis of economic and trade development of GCEC If four parties across straights can cooperate closely, they can drive the economiccooperation and development among them, benefit each other in economic...