A Study Of Chinese Electromechanical Products Trade Effect Based On The Framework Of CAFTA

In the surging tide of the global economy, economic globalization and regional economic integration become the mainstream of economic change. In this trend, each country according to their economic development needs have set up an economic union in the region. ?ChinaASEAN Free Trade Area ?officially started in January 1, 2010.The trade between China and ASEAN become more and more convenient and frequently. The economic and trade cooperation between China and ASEAN has entered a new stage of development. Electromechanical products in the trade between China and ASEAN have always been a high proportion and the key Industry. Since the China- ASEAN Free Trade Area was established, the changes in trading environment would be certainly have an effect on the trade of electromechanical products.The article analysis the present situation of trade between China and ASEAN and their electromechanical products trade in use of UN Cometrade statistical data with the method of theoretical and empirical. It also analysis the current situation and characteristics of electromechanical products trade between China and ASEAN, and compares the development of electromechanical products between China and six main trading partners in ASEAN. In this paper, it gives a theoretical analysis of the development of CAFTA has an effect on the trade of electromechanical products by using the RCA index and G-L index. At the same time, the article gives an empirical analysis of the development of CAFTA has an effect on the trade of electromechanical products in use of China- ASEAN(Six major trading partners) & China-Ten major trading partners' electromechanical products trade data from 2003 to 2013.The conclusion of the article is listed as followed:(1).The increasing of trading country's GDP has a positive role in promoting the development of electromechanical products trade.(2).The distance between the two countries has a negative effect on the development of electromechanical products trade.(3).The establishment of CAFTA truly brings trade creation and diversion effects to electromechanical products trade. And the CAFTA in the set-up time play a greater role in electromechanical products trade than after its establishment.(4).The import promotion brought by the CAFTA is greater than the export promotion. Finally, according to the research results, this paper gives macro, industry and micro policies for China electromechanical industry.