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The strategy about Sichuan Participating in the China-ASEAN Free Trade Area Under the Zero-Tariff Situation

Author: DuJieBao
Tutor: ChenLiLi
School: Southwestern University of Finance and Economics
Course: International Trade
Keywords: Zero-Tariff China-ASEAN Free Trade Area Strategic Thinking Initiatives
CLC: F752.7
Type: Master's thesis
Year: 2011
Downloads: 136
Quote: 0
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China-ASEAN Free Trade Area (referred to as CAFTA) was officially launched on January1,2010, which is marked that the world’s largest free trade zone has basically been established, and this trade area has been formed by developing countries, including a total of1.9billion people, gross domestic product of almost6trillion and trade volume of4.5trillion U.S. dollars, and there are more than90%of the products to achieve a zero tariff. In2001, Sichuan provincial government has seized the opportunities of accessing to the WTO, and further has made a proposal of building "Open Sichuan" strategy. Currently, most of the goods in Sichuan must be through Shanghai, Guangdong and Guangxi Port to export to South Asia, the Middle East, Africa and Europe, freight is also more expensive and it largely reduces the competitiveness of the Sichuan products in the overseas market. Southeast Asia is become as the international market far from Sichuan, and Sichuan province is strengthening the development of trade and economic cooperation with ASEAN countries, which will not only overcome the geographical disadvantages of Sichuan, but also expand the international influence of Sichuan.Most of China and ASEAN countries (except Singapore) are developing countries,so the China-ASEAN Free Trade Area is the regional economic integration and cooperation organization among developing countries (South-South type). And many provinces in China are actively using this opportunity to fully realize their own development, and to seize the open market to south. The southwest provinces especially (such as Guangxi, and Yunnan) should make the use of geographical advantages to carry out comprehensive cooperation with ASEAN countries. And Sichuan should not only be a good "the Open to South" back-up base, but also actively develop the cooperation with ASEAN countries.Based on the background of this development and the urgent need to open the request of Sichuan, how Sichuan will use the strategic opportunities for expanding the cooperation among the Sichuan Province and ASEAN has become a key problem for Sichuan. To solve this problem, the article has made a deep study about Sichuan participating in China-ASEAN free trade area to provide the basis and strategic advice.The article is divided into six chapters:The first chapter is the introduction, and the article describes the background and research topics of significance, the research methods, the focus and difficulty and innovation, and a brief description of the article is organized.The second chapter is a research review on the China-ASEAN Free Trade Area and Sichuan in the construction of CAFTA to sort out the literature review as the theoretical basis for doing this study, this chapter is divided into two sections: the first one is the study review about the China-ASEAN Free Trade Area and it is divided into industry, trade, investment and bilateral relations in the research study; the second section is reviewing the literature about Sichuan participating in CAFTAThe third chapter is about the analysis of the situation of China-ASEAN Free Trade Area. This chapter is divided into three sections:the first section outlines the development process of China-ASEAN Free Trade Area; it is analyzed that the current cooperation of China-ASEAN from three aspects of the trade, investment cooperation and industrial cooperation in the second one; the third section makes the analysis of tariff reduction on products, about7,000species of the normal product of a track,accounting for more than90%, has achieved zero tariffs in China and the old ASEAN members.The basis of cooperation and condition about Sichuan participating in China-ASEAN Free Trade Area is outlined in the fourth chapter, which is divided into four sections:it is outlined that the economic development of Sichuan in section Ⅰ; it is analyzed that Sichuan has the special geographical advantage in Section Ⅱ; it is described that there are long-term cooperation in goods, services and international economic cooperation in Section Ⅲ; it is studied that in Sichuan and the ASEAN countries a number of industrial cooperation have been undertaken, and in different industries a strong the advantage of complimentarily has been made in the last section. It is focused in the fifth chapter on comparison of the industrial and trade structure between Sichuan and the ASEAN countries, which is divided into three sections:the first one is about the comparative analysis of industrial structure among ASEAN countries and Sichuan; the trade structures of Sichuan and ASEAN countries are analyzed in section II; the competitive industries in Sichuan and the ASEAN are analyzed by measuring comparative trade specialization index (TSC).Based on the foregoing analysis of Sichuan,the final chapter is about strategic positioning, strategic guidelines and the specific strategic initiatives, which is divided into three sections:the first section is on the strategic positioning of Sichuan in China-ASEAN Free Trade Area; it is about the strategic guidelines for Sichuan in CAFTA; Sichuan should make the specific strategic initiatives in China-ASEAN Free Trade Area in the last section, such as planning, good organization, personnel, services and capital protection.The innovation of this paper is first, from the strategic level, to systematically plan how to grasp the new situation under Sichuan in China-ASEAN Free Trade Area, first to clarify its strategic position; meanwhile, the deep analysis of industry competition and compliment in Sichuan and the ASEAN countries provides theoretical support. of establishing the macro strategies and specific initiatives for industrial cooperation.The difficulty of this paper is for Sichuan how to effectively seize the opportunity to the China-ASEAN Free Trade Area to proactively plan and the road network in the industry, actively to integrate into the CAFTA, which need to have a far-sighted strategic vision. Therefore, how to grasp the strategic planning becomes a difficulty of study. However, to overcome this difficulty, there is less than satisfactory, due to limited data itself, it can not be studied deeply that the trade with each other only through Sichuan’s foreign trade volume with ASEAN countries reflects their respective strengths and advantages of export industries on the level of HS classification of goods in Sichuan and the ASEAN countries. But overall, the article is made with the guidance and practical significance of the strategic recommendations for Sichuan to better participate in the construction of CAFTA, to provide some theoretical support.

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CLC: > Economic > Trade and Economic > States foreign trade > China's foreign trade > Trade relations with other countries
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