New Era China FTA And FTZ Development Research

The Free Trade Zone and the Free Trade Area are developing rapidly since21centry. There are about5000FTZs in the world and nearly92%of world trade occurred among FTA parties. Both of the FTZ and FTA can play the role of promoting trade and increase employment. However, their concept is quite different. In China, the role of FTZ and FTA during China’s economic development cannot be neglect. Since1978, the FTZ and FTA play different roles in different periods. In particular, they have other effects for China, such as promoting the opening and reforming. In the new era, the establishment of Shanghai Free Trade Zone and the rise of higher standard Free Trade Area negotiations make a significant contribution to the construction of a new system of the open economy.In this paper, the development of the FTZ and FTA in China would be studied which never be done together before. The connection between FTZ and FTA would be pointed out, meanwhile, by the method of analysis, comparison and measurement, though the domestic and international perspective, the author try to provide the basis for construction of the new system of open economy and the further development of FTZ and FTA in China. Firstly, analyzing on the international representative FTZ and FTA, combing with the development of China’s FTZ and FTA, we found that through these two ways can not only help China to meet a big increase in goods trade, foreign investment, and employment, but help to promote trade system and exchange rate system reform. Secondly, though the main factors of openness:trade, finance, investment and industry, we can find that FTZ and FTA in China can help the ascension of openness though making an effect on those four main factors; which also contribute to build a new system of the open economy. Thirdly, in the long run, the functions of FTZ and FTA become convergence, the FTZ would return to simply ports role as a result. However, during the development of FTZ and FTA, there would be a certain adaptability between FTZ and FTA among different period. All above ask rulers to take the development of FTZ and FTA into consideration together, coming the experience home and abroad and give full play to FTZ way and FTA way.Nowadays, facing the disappearance of the traditional comparative advantage and the transformation and upgrading of industrial structure, China stands at the crossroads of reform and opening up once again. Draw lessons from the experience at home and abroad, speed up the integration of existing FTZ and the building a higher standard FTA. Through these two ways to play a two-way effect of reform and opening up, not only drive the construction of a new system of the open economy in our country collectively, but promote healthy steady economic development in China.