Asean Integration On The Influence Of China's Foreign Trade

ASEAN Free Trade Area has been officially launched since 1993, its members are expanding constantly and the domain it covers is extending gradually too. ASEAN not only affects political and economic cooperation in the entire East Asian region, but also has a very important impact on the whole world. China, as a neighbor of ASEAN, has the same similar export structure, so there is fierce competition between China and ASEAN. But at the same time, the trade mutual compensation between the import of China and the export of ASEAN is continuously enhance in the mutual trade which is constantly developing of both sides. So what's the kind of influence of ASEAN integration on China's foreign trade is exactly the problem which needs to be solved. This paper aims at analyzing the relationship of existing cooperation and competition between China and ASEAN in order to provide one expansion path which aims at acquiring the potential benefits and improving the international competitiveness for their economic and trade cooperation.This paper firstly start from the spillover effect of ASEAN integration process, according to analyze the spillover effects and the influence of it on ASEAN integration, we choose commodity trade in ASEAN integration process as a starting point to analyze the impact on China's foreign trade. Then accordance with the role of the technical factors in the formation of competitive advantage, take the technical components of the products as the classification basis to reclassify all chapter 99, categories 22 trade goods of ASEAN, and base on this point, we analyze the present situation of ASEAN trade. Then select the VAR model in econometrics as empirical model, various types of import and export quantity of ASEAN which is reclassified as independent variables, China's foreign trade quantity as dependent variables, select 15 years of trade goods data as the samples and with the counteraction analysis and pulse corresponding function to analyze the influence of ASEAN integration on China's foreign trade. We worked out that the export of resource-intensive products and the import of primary products, high-tech products of ASEAN play a significantly hinder to China's foreign trade in short-term, medium-term, and long-term; primary products, high-tech products in the export and resource-intensive products, medium-tech products in the import is beneficial to China's foreign trade; Both import and export of low-tech products impede China's foreign trade. Based on this point, this paper puts forward that China needs to understand the competitive relationship with ASEAN correctly, adapt to the impact of ASEAN integration. While respond to competition, disinter a deeper level cooperation between them. Cooperation strategy based on comparative advantage and joint development, actively expand complementary advantages both with industries. Trade strategy needs not only to find new export markets, and also needs to expand the sources of imports, and promote trade liberalization in the field of bilateral and multilateral trade.