On Trade Effect Of East Asia Economic Integration

Regional integration has become one of the major trend in world economic development, with the further development of economic globalization since the 80s and 90s last century. So far, there are hundreds of FTA which has been established. Particularly, the set up and stable growth of European Union and NAFTA has improved that regional integration is the road to business success of co-prosperity and collaborative development. As a result, regional economic integration organizations play more and more important position and role in the global economy.In recent years, East Asian countries has being discussing a development model about regional cooperation and mutually benefit. Especially after Asian Financial Crisis, those countries have been more aware of the necessary of regional mutual assistance. Only in this way, can they jointly hedge the risk, increase their competitiveness and voice in the global economy, facing the world's intense competition. The further development of ASEAN and ASEAN 10+1, the building of China-Japan-South Korea Free Trade Area, reflect the desire of regional cooperation in East Asia, which also advance the process of economic integration in East Asia.This paper tries to literature review and summary the theory of economic integration, and analysis the East Asian economic integration in the view of theoretical basis and practical basis. At the same time, this paper tries to give the proposed model of East Asian economic integration and China's response, to the recommendations of this region's integration, after the studying of trade effects of this area. The paper in favor of this road that is with the lead of ASEAN, through the establishing of three ASEAN 10+1 and China-Japan-South Korea FTA, hence promoting the construction of the ASEAN 10+3, and then to achieve the process of economic integration in Asia. This paper contains that there has broad prospects for development with the integration of East Asia, after the study of trade effect through the static and dynamic point of view. What's more, based on above analysis, this paper tries to give some policy options and countermeasures about China in the process of East Asia economic integration.