A New Perspective of the China - ASEAN Free Trade Area and the Story of Top Ten Products

Abstract

The politics of modern world is changing every day and all developing countries look for new markets to survive in all situations. China, as the world’s leading producer, also looks for multiple markets to decrease the chances of any major setback of economy in future. In these lines, China has recently signed Free Trade Agreements with different nations. This study explores the impact of one such Free Trade Agreement between China and ASEAN countries. Taking a qualitative and descriptive approach, this paper studies the effects of this agreement on both the sides. Analysis determines that both the sides have great benefits in this kind of agreements. China’s trade with ASEAN countries has taken a positive outlook since 2010 after implementing this agreement. In addition, making more 93 percent items with zero tax has provided a boost to the trade between two sides. This exploration further explains that as a dominating partner in this agreement, China has obtained good deal of advantage after signing this agreement. The study suggests that China can establish a real target market by providing some benefits to other parties. In addition, China needs to continue working on such agreements not only with ASEAN but also with other neighboring countries to develop sustainable markets for future trade.

Keywords: Free Trade Agreement, China, ASEAN, International Trade, International Economics