Research On The Impact Of Trans - Pacific Partnership Agreement (TPP) On China 's Foreign Trade

Trans-Pacific Partnership Agreement(TPP) is the latest trend of in the Asia-Pacific region’s trade and investment integration, its progress has been highly concerned about the world.TPP will eventually be built for the integration of the Asia-Pacific region, it also reflects the considerations of American multi-level strategic: On the one hand, TPP can promote domestic economic development, solve the problems of trade growth and employment problem; on the other hand, it is in favor of the United States’ willingness to establish new rules of international trade. In the leadership of United States, countries have joined in the new generation of multilateral trade agreements, TPP, as a regional multilateral mechanism, indicates the new pattern of Asia-Pacific Economic Cooperation. China is one of the most important countries in the Asia-Pacific region, the impact of TPP on China is particularly noteworthy. As TPP is a high standard of multilateral trade agreement, lots of high-level standards will be taken into consideration. The TPP pursues extensive liberalization in goods and services, and comprehensive coverage including trade, services, investment, trade rules, government procurement, and other areas. the TPP proceeds on the terms being set by the US, on one hand, it will be very difficult for China to join, on the other hand, China has not been invited to join, China is still excluded from the TPP negotiations, so there is the danger of being isolated in the Asia-Pacific. According to the latest information, this article will clarify some main clauses of TPP.According to the theory of regional economic integration, TPP will affect China’s foreign trade to some extent. To the non-member countries of TPP, trade diversion effect will happen to them, the trade between member countries and non-member countries will surely reduce, which will cause a decline in the economy and welfare of the non-member countries. Since joined in the WTO, China’s mega trade has made considerable progress, the flow of trade has been expanded, the merchandise export’s structure has been increasingly optimized, the export market has been more stable, the trade in services has also been developed. However, a few of problems have been turned out, the structure of the merchandise export is not that reasonable, service trade should be improved and so on. This paper analyzes the current situation of China’s trade and explains the status quo of trade between China and TPP main member counties from the perspective of trade. With the constant development and expansion of TPP, China’s trade will affect to some extent.TPP is one of the most powerful region economic organizations in Asia-Pacific, and its progress impact the trade between China and the other countries, especially with the join of Japan. First, in the view of the Customs Union Theory, this paper analyzes the static and dynamic effects that TPP will bring, and the static effect has been simulated by the method of graphic and structural model for. Second, in quantitative analysis, the gravity model which is widely used in international economics is used to analyse China’s join in TPP in the year of 2016, as the gradual decline in the rate of tariff, the change of bilateral trade flows of China, then we could conclud that once joined in the TPP, China’s forgein trade will TPP be promoted. Therefore, China should make relevant work in advance, to face the challenge of TPP actively, such as improve the foreign trade system, optimize the structure of foreign trade, strengthen trade links between China and the TPP member countries, accelerate the construction of China FTA strategy, continue to promote our country’s FTA zone to promote the inner reform and so on.