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    China Is Developing A Craze For Building Free Trade Zones.

    2015/5/5 21:34:00 60

    ChinaKoreaFTA

    The most basic function of the FTA is to allow foreign goods to be exempted from tariffs and free access, essentially in creating a more open and more international trade market.

    Although the Chinese government has not yet made a clear proposal, some people have realized that the establishment of a number of free trade zones has played an objective role in boosting China's pformation from "world processing plant" to "the world's largest market".

    In February 25th this year, China's Ministry of Commerce announced that the two sides signed the draft agreement on the Sino Korean free trade agreement on that day and confirmed the contents of the agreement.

    As far as China is concerned, the FTA is the most widely traded FTA involving the largest volume of trade and the most comprehensive areas in the world. For South Korea, the number of preferential tariff preferences for FTA between China and South Korea is the largest in all FTA agreements signed with other countries.

    China can pform the "big world market" through the free trade area, and it can also balance its competitors in the international economic competition.

    China, Japan and South Korea have been playing a realistic version of the romance of the Three Kingdoms in Asia. As early as 2003, the three countries reached the idea of constructing a free trade zone, but there were no substantive negotiations due to political factors and so on.

    Since 2010, the United States has implemented the military strategy to return to the Asia Pacific strategy, and has made great efforts to promote the p Pacific Economic and trade agreement (TPP). It has fully intervened in the economic integration in the Asia Pacific region. Japan has taken the lead in responding to and deciding to join the TPP negotiations.

    After the Asian economic balance was broken, China and South Korea first launched the FTA negotiations.

    For this time, South Korea is also facing a dilemma.

    On the one hand, for the sake of maintaining relations between Korea and the United States, Japan is also worried that Japan will grab its global market resources under the influence of TPP. In 2013, South Korea said it would join.

    TPP

    Negotiations.

    On the other hand, China is, after all, Korea's largest trading nation. South Korea hopes to get more cake from China's economic growth and actively sign the FTA with China.

    What kind of stimulus will this highly regarded FTA bring to the bilateral trade of the two countries? What benefits can the two peoples get from it?

    Director, Institute of world economics, international trade and Economic Cooperation Institute, Ministry of Commerce of China

    Liang Yan Feng

    Through the Sino Korean free trade area, we can expand content and openness and raise the level.

    Of course, this is also related to the fact that South Korea is a moderately developed country, and its openness and economic level.

    A high standard.

    China South Korea Free Trade Zone

    The establishment of the two countries will stimulate the economic growth of both countries, and promote domestic production, employment and consumption.

    From the perspective of regional trade, the reduction of tariffs will stimulate the two countries to expand exports. The trade of raw materials and spare parts will be more convenient, and cross-border flows of capital, technology and talents will become more frequent.

    This will help the two sides achieve complementary advantages, form regional industrial forces and better join the global competition.

    Zhao Jianglin, director of the International Economic Relations Research Institute of the Asia Pacific and Global Strategy Institute of the Chinese Academy of Social Sciences, said: Overall, the positive impact is certainly greater than the negative, and the negative is only temporary.

    Chinese and Korean enterprises should adjust themselves in the new system and competitive environment. They should not ignore the self adjustment and adaptability of the enterprises themselves, and should not be too negative.

    An enterprise may be damaged, but from the perspective of the whole industry, enterprises will still adjust.


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