Study On Trade Cooperation Of China-ASEAN Free Trade Area

With the development of global economic integration, regional economic cooperation has become the trend to be followed by the most countries in the world. As the world’s major economies, China and ASEAN gained a lot of attention, in order to enhance cooperation in all aspects of the economy, the establishment of China-ASEAN free trade area is also a general trend. On January1,2010, China-ASEAN Free Trade Area has been completely constructed; the rapid growth of bilateral trade between China and ASEAN confirmed that it is a right choice of signing of free trade agreements.Because of the close trade relations between China and ASEAN in recent years, many scholars at home and abroad analyze the impacts, bilateral cooperation in all areas of the production and the outlook of the future from various aspects since the China-ASEAN free trade area was built. However, there are still many problems worth our research in China and ASEAN countries from the business point of view now. How trade competitive and complementary work for China and ASEAN, whether the trade creation effect and transfer effect exists at the same time? First, the effects of free trade zone since established and the results will be analyzed in this paper through the common trade theory:customs union theory and intra-industry trade theory and so on. Through coordinate chart to display the changes of the trade and the result before and after the free trade zone was set up. Combining with the present situation of cooperation and making use of China and ASEAN trade complement index, this paper will show us how industries complete for both China and ASEAN, and provide substantial support for the future cooperation. In the empirical part, we research for the effect of the creation and transfer of bilateral trade cooperation after the free trade zone was set up through gravity model, and demonstrate the effectiveness of the current our country’s trade policy. Finally, According to the result of the china-ASEAN free trade area trade cooperation, we analyze the current problems in free trade area, and provide suggestions and policies for the future of China-ASEAN cooperation from the perspective macroscopic and microscopic sides.