Trans-Pacific Partership Agreement(TPP) On The Impact Of China’s Export Trade

After the financial crisis, America’s economy fell into recession. At the same time, the outbreak of the European debt crisis brought dimmed prospects to the EU economy. While on the opposite side, the economy boomed in the Asia-Pacific region. In order to promote the recovery of the economy, America announced to join the trans-pacific strategic economic partnership agreement(TPP) established by the Chile, Singapore, New Zealand and Brunei in a big way in2009and leaded the TPP negotiations. They also promoted other economic entity’s participation actively so as to draw the Asia-pacific and the world’s attention on TPP. So far, the TPP includes12member countries whose influence is also growing day by day. But until now, as an important member of APEC and Asia’s economic superpower, China had never been invited to join in.The establishment of a free trade area will inevitably lead to trade effects, which will cause the trade creation effect for regional countries and will strengthen economic and trade cooperation between countries within the region, so as to raise the level of economic and welfare. That will also cause the trade transfer effect for countries outside the area and reduce trade from countries outside the area to regional countries, which will inevitably lead to a decrease in the level of economy and welfare of the countries outside the area. China is such a huge and typical country of export-oriented economy, the export trade in China will certainly be effected in a certain extent with the development of TPP. In consequence, it’s becoming the focus of the research that what measures should be taken to eliminate the negative influence on export trade in our country caused by TPP.After detailing the origins, processes, and features of the TPP, and analyzing the trade status of China’s export to the major economies of TPP,I found that China’s major export products have been transferred from labor-intensive ones to the capital technology-intensive ones. Meanwhile, I used theoretical analysis on the trade effect caused by the TPP, and found that it will cause the trade creation effect for member countries and the trade transfer effect for non-member countries. Then after analyzing the market competitiveness and growth rate of the products exported from China to the major economies of the TPP,I found that the establishment of the TPP had limited effect on labor-intensive products in China and had none effect on capital technology intensive products in China. According to the research result, I proposed that on one hand China should speed up the economic structure transformation and improving the export commodity structure, on the other hand China should establish a free trade area in order to make up for the loss of market share caused by the TPP.