Studies On Establishing FTA Of China Japan And Korea

Nowadays, the world has already entered into a time that the economic globalization and the regionalization developing together. The NAFTA(North America Free Trade Area) will develop further towards a Pan-America FTA in the near future. The European Union including 25 members has already approved the EU constitution, and this made the EU integration developed to a higher degree. As a later comer, Asian regional economic cooperation is making a greater progress in recent years. Facing the big challenge and pressures from the worldwide regionalism, East Asian nations are also going for regional economic cooperation. So far, China has signed a FTA agreement with the ASEAN referring to"10+1"; other two"10+1", the Japan plus ASEAN, and the Korea plus ASEAN, are in positive initiation. Meanwhile, a"10+3"(China, Japan and Korea plus ASEAN) cooperation scheme is also taking a shape. However, whether or not the East Asian area can form a regional group like EU and NAFTA, the key is the cooperation of China, Japan and Korea. The total GDP of China, Japan and Korea takes 19.8% of the world total and the trade volume takes 11.8% of the world. It's no doubt that establishing the FTA of China, Japan and Korea is the historical mission of Asian countries and is the key step to promote the East Asian FTA.When studying the necessity and possibilities of the cooperation of the three East Asian nations, they have indeed become the important trade partners due to their closer geography positions and strong economic supplementary nature. Currently, China is the biggest trade partner of Japan. Korea is the fourth trade partner, the fourth export market and the third import source of China. China is the biggest trade partner, the biggest export market and the first surplus source of Korea. The three are not only geographically close to each other but also have many cultural similarities that increase the possibility of cooperation of the three. Japan owns sophisticated technique and a great deal of capitals, Korea owns the advanced production expertise and experience, and China has a huge market. If the proposed FTA be built up, not only the three shall benefit, but also the whole East Asia.Certainly, establishing the FTA is not an easy task, because of tough situations being faced by China, Japan and Korea. First of all, the so called"Industrial Separations"is worried about by Japanese, and the agricultural subsidy worried about by both Japan and Korea. Secondly, the Sino-Japan and Japan-Korea disputes over historical and territorial issues are also obstructing the regional cooperation process. China should adopt active policies dealing with the relations of Sino-Japanese and Sino-Korea respectively. Seeing from the paths of building up the FTA amongst China, Japan and Korea, the author thinks that China should make hard efforts on the Sino-Korea FTA, while developing actively the economic and trade relationships with other nations of East Asia. That could not only show China's determination to promote the FTA but also put Japan under pressure. The step-by-step strategies shall finally establish the FTA of these three countries.