ASEAN-China FTA Development Trend And Effects On China's Economy

ASEAN-China economic linkages are moving into a new direction. In November 2001, ASEAN and China agreed to establish ASEAN-China free trade agreement in 10 years. It is not only a strategy of the economic connection, it also has a deep implication to China. For both sides, there should be trade gains. With China's economic growth, it seems that China would require more imports and ASEAN could provide a source for natural-resource. Both ASEAN and China's hope to prosper will be intricately linked to their outward orientation. And the role of developed countries to open up more opportunities provides a firmer foundation for growth and stability. A new FTA has also opened up a debate of a possible formation of an " Asian Economic Community".Establishing the China-ASEAN FTA will become a successful mode which to develop the cooperation between the developing nations. It will not only strengthen good neighborly and friendly cooperation between China and ASEAN, but also have a vital role for which to realize the superiority supplementarily to both sides, union striving to improve, open up new developing opportunities, resist the risk together which the economic globalization will bring, and strengthen Asia nations status in the international economic and trade. Although in future five years the FTA in advancement still will have many variable questions, because establishing China-ASEA FTA in accord with bilateral benefit, so long as both sides seek common ground while maintaining difference, as well as take the essential counter measure, the China-ASEAN inevitably presents the aspect of double wins.The economic rise of China is having wide-ranging repercussions in ASEAN and the rest of the world. ASEAN perceives both threat and opportunity from China's economic success: the threat arises from the size and rapid growth of China's economy and the competition for export markets and foreign direct investment; the opportunity arises from possible increases in both exports to China's rapidly growing market and Chinese investment in ASEAN enterprises. ASEAN has embarked on deeper and faster integration toward an ASEAN Economic Community to meet these challenges and is simultaneously engaged in several ASEAN-1 initiatives to further improve its economic efficiency and market access.This paper has five parts to explain my point about ASEAN-China FTA. For the first part, it tells us the general concept of ASEAN-China FTA agreement, the background and motivations of the ASEAN-China economic cooperation, as well as how it works.For the second part, we will have a through understanding about the framework and context of the ASEAN-China FTA. Also, there will be some characteristics of China multilateralism.The third part tells us the upcoming opportunities and challenges towards ASEAN-China FTA. As to the opportunities, such as, China's economic rise and competitiveness, increased bilateral trade, global and regional trade interaction. On the contrary, there are some challenges such as competition for FDI, protection in ASEAN, the economic difference between ASEAN and China. This is the main part this paper wants to discuss.The next part will tell us the future of ASEAN-China FTA, and it analyses it from different aspects. It will enlarge its partnership and improve its economic connection with the rest of the world, and it also has the growth of export and income. The last part is some proposals for cooperation in enterprise capacity-building and analyses of ASEAN-China reality and prospect.