China - Asean Free Trade Area

A Study of the Issues about Founding CAFTAThe 10 countries in ASEAN are near neighbors of China. In order to maintain and develop the affiliation of friendly cooperation with ASEAN; to form a stable surroundings; to open up the markets in peripheral nations, China has been committing itself to strengthen the affiliation with ASEAN. In 2001,China and ASEAN came to a common intention-founding China-ASEAN Free Trade Area (CAFTA )withinl0 years which is a great strategic decision fairing tide of times for both sides.There are many factors causing the common intention of founding CAFTA. Firstly, it is the demand for rapidly developing the oneness of global region-economy. Moreover, it is a sensible decision for ASEAN who has considered the situation. The sign of global economic recession make ASEAN whose economy relies on some developed nations like Americajapan over a long period realize that it should be avoided to depend on Western powers blindly. With Chinese economic growing up, the nations in ASEAN expect to establish close economic relationship with China through organization from which they can share the opportunities brought by the development of Chinese economy. Finally, China duly adjusted its economic policy on international region-cooperation to respond to the tidal wave of region-economy. To strive for a proper region-economic stage in fierce international competition, China initiated CAFTA, which is approved by every nation in ASEAN promptly.The foundation of CAFTA is of benefit to promote the status of China and each nation in ASEAN,and of great benefit to impel the region cooperation in Eastern Asia, to cope with the new trade protectionism brought by oneness of America.Europe area regionalecnominc corperation.There are many restrained factors in the process of founding CAFTA. Firstly, the situation of Asia-Pacific cooperation is so intricate that it is inevitable to have varied difficulties in dealing with or coordinating the complicated relationships with other cooperative mechanism. Secondly, theCAFTA is one that a nation cooperates with a region-economy organization, so that the CAFTA becomes prosperous or not is directly affected by the situation of this economic organization. It should be pointed out that ASEAN is of congenital frangibility. Finally, there are competitions between China and ASEAN in trade and absorbing foreign investments; There are varied contradictions in the leading power and dominion over the sea south to China. The intricate international political and economic situation also increases the contradictions. Therefore, these restrained factors shouldn't be ignored.Based on the analysis for these disadvantageous factors, this thesis tries best to have a breakthrough by putting forward a series of countermeasures. For author's limited knowledge, these shallow opinions still wait for being deepened and sublimated.