A Research On The Motives For The Signature Of Japan-India Comprehensive Economic Partnership Agreement And Its Impact On China

The current multilateral trade negotiations, with slow progress, has little effect, and in this context, more and more countries and regions turn to taking part in regional trade agreement, trying to realize intra-regional trade liberalization and investment liberalization so as to promote trade, investment and economic growth. Through this way, they can overcome the negative effects of economic globalization by relying on the strength of the group. On the other hand, this can help maximize the shared benefits of economic globalization. The regional trade agreement plays an increasingly important role.The Comprehensive Economic Partnership Agreement between Japan and India (JICEPA) entered into force on August1,2011. Japan, the only developed country in Asia, signed a free trade agreement with India, the region’s second largest developing country, will not only promote Asian economic integration, but also has a significant impact on the whole world. The JICEPA is kind of a reference for China to sign FTA with other powers. In addition, China as the largest developing country in Asia will definitely be influenced by it, and it means a lot to analyze the possible effect on China caused by the JICEPA and put forward countermeasures. By doing this, our ability to response to external shocks will be enhanced.The article analyzes the basis and motives for signing JICEPA by combining qualitative and quantitative methods. With the help of indictor (export similarity index and RCA index), the thesis analyzes the state of competition of Chinese product on Japanese and Indian market. Finally the essay comprehensively analyzes the impact of JICEPA on China, and puts forward the pertinent suggestions.After analyzing, the article draws the following conclusions:first, the motives for JICEPA include both economic and political factors. Second, Chinese exports listed in JICEPA as exception will not be affected, and those with exempted and low tax rate will suffer a little. Third, all goods exported to Japan will not endure a large scale of decline; however in Indian market, Chinese coffee and tea, cereals and preparations, oilseeds, fats&oils, sugars and confectionery, leather and transport equipment will suffer a huge loss while others not. Fourth, JICEPA has little effect on transferring Japanese investment in China to India. Fifth, JICEPA will weaken the impact of China over East Asia integration.This thesis has two innovations, the first one is using political economics to analyze the motives of Japan and India sign the pact and its influence over China. The second one is that while making recommendations, starting from the perspective of China, Japan and India respectively.Since the GTAP database is unavailable, it is impossible to establish the GTAP model to analyze the possible impact on Chinese macro-economy. Besides, due to the limited professional knowledge, the analysis of the this issue is not profound enough, and exists room for improvement.