Research On The Influence Of CAFTA On The Mechanical And Electronic Products Trade Between China And ASEAN

With the continuous development of economic globalization, the economic and trade relations have become closer among the countries of the world. The mechanical and electrical products which has become the most traded commodity is also the major products in Chinese export trade. The influence of the China's export competitiveness of electromechanical products on China's foreign trade is very large. The trade between China and ASEAN is not only to impact the economy on both sides, but also for Asian and the world economy, will have a considerable impact. Since January 2010, after the establishment of CAFTA, there is a rapid growth in mechanical and electronic products trade between China and ASEAN.This dissertation analyzes the current situation of the mechanical and electronic products trade between China and ASEAN. The analysis shows that the trade of mechanical and electrical products between China and ASEAN is increasing year by year. The theoretical basis of this dissertation is the Customs Union theory. This dissertation studies the trade effects of CAFTA on mechanical and electrical products trade between China and ASEAN, and establishes trade gravity model to test the results of the study. According to the results of empirical test, the establishment of CAFTA produces trade creation effect and trade transfer effect on mechanical and electrical products trade between China and ASEAN. Research on mechanical and electrical products trade between China and ASEAN shows that the trade creation effect is more than the trade diversion effect what produced by the establishment of CAFTA. Research on mechanical and electrical products trade in China and ASEAN countries shows that the establishment of CAFTA produced the trade creation effect on mechanical and electrical products trade between China and Singapore, Malaysia, Thailand more than the trade diversion effect. But, the establishment of CAFTA produced the trade diversion effect on mechanical and electrical products trade between China and other ASEAN countries more than the trade creation effect.There are still some problems in the bilateral trade of electromechanical products, through the study of mechanical and electronic products trade between China and ASEAN. The import tariffs on mechanical and electrical products can't fully achieve zero tariffs in CAFTA; the difference of economic level between ASEAN countries is too great, which influences the trade between China and ASEAN; Chinese electromechanical industry structure is not advanced, need to be upgraded. At the same time, this paper also puts forward the corresponding countermeasures and suggestions, in order to promote mechanical and electronic products trade between China and ASEAN.