Study On Guangxi Border Trade Under Cafta

Border trade is a unique trade category among contiguous countries, and an important part of trade make-up for a country's outbound trade relationship with other countries. China has a long history in terms of having trade relationship with other countries, beginning with Zhang Qian's westward mission during West Han Dynasty and followed up by the opening-up of the Silk Road and South-west Silk Road. But the border trade had a qualitative transformation only after China's "reform and open" policy was launched, with the publication and implementation of . The Regulation had a very big effect in terms of economic development for the minority border region of China.Among the make-up of China's border trade, the one between Guangxi and Vietnam has always played an important role. After the normalization of China's relationship with Vietnam, the trade volume between Guangxi and Vietnam has increased dramatically, having a big pushing effect on Guangxi's economy and especially on the economic development of the border region of Guangxi.Guangxi lies in the south of China, in a special position of having the advantages of bordering the ocean (the South Sea), the border (with Vietnam) and the river (Zhu River). She is also the intersecting point of Southern China economic circle, South-western China economic circle and the ASEAN economic circle. Guangxi acts as an important corridor in terms of connecting China's South-west and even North-west to the South Sea. She also acts as the linkage between China's western region and Guangdong, Hong Kong and Macao. Under the backdrop of China joining World Trade Organization (WTO) and the construction of China-ASEAN (The Association of South-east Asian Nations) free trade zone, Guangxi-Vietnam border trade will play evena bigger role vis-a-vis the China-Vietnam and even China-ASEAN trade, with Guangxi as the gateway for South-western China to the South East Asia.Guangxi-Vietnam border trade is under a historic development opportunity because of the combination of good geographic location, abundant natural resources, and theconstruction of the China-ASEAN free trade zone. Under the context of China's "go west" policy, Guangxi should grasp this opportunity and actively develop the border trade with Vietnam, leveraging her geographic advantage and her "window" role. Using the Guangxi-Vietnam border trade as the stepping stone, Guangxi should strengthen her relationship with other ASEAN countries. By way of the pulling effect of the border trade development, she can optimize the industry structure and push the development of other related industries.Using the related border trade theories as the foundation of the paper, this paper elaborated on the historical and present situation of the Guangxi-Vietnam border trade and analyzed the reasons and roles it plays behind the big increase of trade volume between Guangxi and Vietnam, The paper also pointed out the problems this trade relationship has. And finally the paper pointed out the development prospect of the Guangxi-Vietnam trade and the development strategies of the Guangxi-Vietnam border trade, after having analyzed the impact the construction of China-ASEAN free trade zone has on the trade development between Guangxi and Vietnam.