CAFTA: China-ASEAN Free Trade Area, Implications on Trade and Development

Abstract

Until 2013, Association of southeast Asian nations (ASEAN) is China’s third largest trading partner globally and the largest trading partner among all developing countries as well as Asian countries, while China is ASEAN’s first trading partner. Since 1990s China and ASEAN become progressively closer in bilateral trade. With the exception of 2009, due to world economic crisis, bilateral trade amount has been increasing frequently, remarkably, after 2010, when the China-ASEAN Free Trade Area (CAFTA) established. This paper analyzed the effect of current regional scenario and trade relations between China-ASEAN and proposed the countermeasures for improving further development.

Keywords: China, Association of Southeast Asian Nations (ASEAN), China-ASEAN Free Trade Area (CAFTA)