China - Asean Free Trade Area Of ​​the Impact Analysis, Based On Mutual Investment

With the trend of economic globalization, the pace of area economic integration is accelerated. European Union (EU) and North American Free Trade Area (NAFTA), eventhough have different integration level, both make progress in the development of economy. In 2002, China has sighed documents with Association of Southeast Asian Nationas(ASEAN) to eatablish the China—Asean Free Trade Area (CAFTA) in the year of 2010.Summary of articles with reference to mutual investment in CAFTA, including early researching articles about area economic integration based on European economic integration and mltinational companies.In 1980s and 1990s,more and more researches are on EU and ASEAN's practical cases.Articles about developing countries' FDI, and recently domestic and foreign interatures of investmentment effect of East Asia's area integration.Since 1990s, mutual investment between China and ASEAN developed quickly. China has became one of the most importmant capital—outflow destination. Meanwhile, China also invest a large number of capital to some ASEAN's members. Although mutual investment between them began so late and still haven't exert the whole potentional power, following the foundation of ASEAN and implement of clause of investment, mutual investment between China and ASEAN will get more progress, and bilateral economic relationship will be more consanguineous.ASEAN countries are near to China in location and have kindred cultural background. China and ASEAN countries have different advantages in the resources, technology and industrial structure, so each partner have a great quantity of cooperative opportunities.Development of econimy differ is unlike in different counteries and industry stucture present different characteristics. Investment from ASEAN to China mostly centralize to formal five counteries whose economy and industry structure are caparatively reasonable.Investment fom China to ASEAN countries.According to different countries' structure and economic seedtimes to produce different types of investment, them will be benefit for China's industry upgrade.It has a very important stratege meaning for reinforce mutual investment relation to establish CAFTA,which is extremly favor of China's recent "Go Out" procedure.We can also use cheap and ASEAN's abundant resources to reduce pressure from domestic lack of resouce.It is also in favor of totallyopenning of domestic financial market. During the procedure of foundation of CAFTA,we should see that there are still many ojective obstacles in mutural investment between China and ASEAN, meanwhile,and this area economic integration hasn't expounded the concrete investment system of CAFTA,which still to be improved.So this paper aslo provide some benificial suggestions such as increasing domestic market—openning degree.Weakening non—tariff obstacles between with other countries of CAFTA.Promoting upgrading industry organizaition of mutual investment with CAFTA's members.