A Research On China’s FTA In Regional Economic Integration Strategy

With the rapid development of technology and economic globalization, the countries are becoming closely associated. Around the world, the multi-polarization tendency is getting stronger, regional cooperation has been one of the main trend of the world economic development, countries are looking for regional cooperation to realize the national interest growth.Regional cooperation in East Asia started late, but has developed rapidly in recent years. The foreign policy of ASEAN is "Power balance".which has worked brilliantly. Now in Asia there are many cooperation mechanisms with ASEAN at the core, such as CAFTA,"10+3" and "10+6". CJKFTA has been launched since2013. TPP, which the Unit States advocates, has entered the stage of substantive negotiation. RCEP is proposed by ASEAN. Now it has got all members’approval. Asia has formed the phenomenon of numerous regional cooperation organization existing.As the largest developing country in the world, China’s economic development in recent years has attracted the world’s attention. With the growing number of regional cooperation organizations, the connection between Asia countries and China has always been intensive. However, in recent years the Unit States has declared back to Asia, trying to regain the control of Asia through TPP. The territorial conflict with Japan, Vietnam and Philippines has been escalated, the political relation has been fossilized. The changing political situation makes the relationship between China and other Asia countries alienated, which is conspire against China’s development. Therefore, China has risen the free trade cooperation to the national strategy. China plans to promote the FTA strategy in Asia, which will bring the active effect to China’s participation in Asia-Pacific regional economic cooperation.This paper uses the regionalism and FTA theory to analyze the development, characteristics and significance of China’s FTA strategy. And, uses the gravity model to discuss the trade-flow effect under the "10+6" perspective. The FTA strategy will have an active effect on China’s trade-flow. So China should promote FTA strategy actively, have the initiative of making rules, and raise the regional cooperation to a high level. This paper is divided into five parts. First, it introduces the background of the question and the research of the question. Second, introduces the related theory and positive research. Third, analyzes the development and characteristic of China’s FTA strategy, and discuss the strategy significance of FTA in Asia. Next part is under "10+6" perspective. It uses indexes to analyze the trade situation of members, the indexes are the index of trade dependence and index of trade integration. It also uses the gravity model to analyze the effect of FTA. The data ranges from2003to2012, including ASEAN, China, Japan, South Korea, India, Australia and New Zealand. Considering that there exist lack of data of some years in Brunei, Cambodia and Myanmar, so these countries are eliminated. At last, it gets the inclusion about the effect of FTA for China and puts forward some suggestion for current situation.The innovation of this paper is that the paper uses the gravity model to analyze the effect of FTA for China’s trade flow.But since the date of trade flows of countries is updated to2012.From this point of view, the study is insufficient in timeliness. And the gravity model cannot analyze the welfare effects of FTA.