On The Prerequisites And Prospects Of Establishing China-japan-korea Free Trade Agreement

The communications and cooperation between world economies are getting stronger every second, local economy issues can greatly affect the world as a whole and it could also cause a worldwide recession. The financial crisis started in the U.S. In 2007, led by "subprime" and adjustable rate mortgages crisis, harmed some countries and region unbelievably, however, some associations of region economies draw a great attention by showing their vital competitive advantages. Due to the success, many associations in all kinds of models are growing rapidly.In specific about East Asia, China, Japan, and South Korea all acquired massive capitals, similar culture background, and close to each other geographically. What's more, governments and folk Corporation from these three countries eagerly want the FTA to be set up.This article talks about the practicability of FTA and its possible strategies, by using the economic research method.According to ladder development theory, the difference between the three countries'industrial structure provide a good space for economic communication, industrial promotion, and capital flow. Through a comparative analysis about the economic data, we can conclude that, China, Japan, and South Korea have their advantages in economic base, industrial structure, capital flow, and culture recognition to build FTA.They should learn the successful experience from NAFTA to maximize their profit, leave their difference, and try to cooperate as well as possible so to finish their joint research to step into the negotiation process earlier. The specific strategies could be as follows:depending on folk corporations to further their partial corporation more broadly; integration of industry could start with better ones and leave some time for poorly industry to protect themselves; setting mutual benefit as a goal, gradually building up their corporations on multiple regions and level, strengthening financial corporation and building up currency swap system, and trying to avoid financial crisis in lower cost, leaving the historical difference and improving the mutual trust to speed up the negotiation process.