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After the completion of the Free Trade Zone, China and Brunei, the Philippines, Indonesia, Malaysia, Thailand, and Singapore will have more than 90% of the products, that is, about 7,000 kinds of goods will be zero-tariff, and China’s average against ASEAN. Tariffs will be reduced from the current 9.8% to 0.1%, and the average tariffs of the above-mentioned ASEAN member countries on China will fall from 12.8% to 0.6%. The four new ASEAN members in Vietnam, Laos, Cambodia and Myanmar will have a five-year “buffer period†and achieve zero-tariff targets for 90% of Chinese products in 2015.
Future growth potential, the world's number one
Some experts pointed out that from the perspective of economic scale, CAFTA can only be ranked in the EU (starting on January 1, 1993, with a GDP of 10 trillion US dollars) and the North American Free Trade Zone (established on January 1, 1994, GDP). After the size of 11.4 trillion US dollars, it ranks third, but in terms of population size and future growth potential, this new free trade zone is well-deservedly ranked first in the world.
In the process of continuous advancement of the free trade zone, there will surely be more trade facilitation, and investment from both sides will continue to increase. The flow of production factors and resource elements will continue to accelerate due to competition and promote economic development.
The average annual growth rate of trade is 20%
As the first free trade zone in Asia, CAFTA will surely bring China-ASEAN economic and trade cooperation to a new level. Since the signing of the "Comprehensive Economic Cooperation Framework Agreement" between China and ASEAN in November 2002, the economic and trade relations between the two sides have developed rapidly. The trade volume has increased from about 60 billion U.S. dollars in the year to 231.12 billion U.S. dollars in 2008, with an average annual growth rate of 24.2%.
The scale of mutual investment between China and ASEAN has also expanded. ASEAN’s actual investment in China increased from nearly 3 billion U.S. dollars in 2003 to 5.46 billion U.S. dollars in 2008. China’s direct investment in ASEAN surged from 230 million U.S. dollars to 2.18 billion U.S. dollars. More and more Chinese companies will use ASEAN as The main investment destination.
With the further reduction of tariffs, the complementary advantages of China and ASEAN and the optimization of trade structure will be further revealed, which will inevitably play a huge role in promoting the overall economic and social development of the Free Trade Zone. China can transfer some labor-intensive industries at the end of the industrial chain to some less developed ASEAN countries at a lower cost, and at the same time meet the needs of these countries, realize their own industrial upgrading and industrial structure in the international region. Adjustment.
Conducive to the export of China's advantageous products
Gao Hucheng, deputy minister of the Ministry of Commerce of China, said that after the completion of the China-ASEAN Free Trade Area, the degree of regional economic integration will reach an unprecedented level, and enterprises will usher in rare development opportunities, and ordinary consumers will benefit from it.
Huo Jianguo, president of the China Academy of Commerce's Trade Research Institute, also said that the establishment of the free trade zone is conducive to the export of some advantageous products from China, but China will also increase imports of raw materials and vegetable oil from ASEAN. Both companies will play their respective advantages and enhance product competitiveness. .
Help against trade protectionism
The CAFTA not only benefits China and ASEAN, but also brings a strong demonstration effect and attracts many follow-up actions. It is very likely to bring a new wave of free trade in East Asia, Asia and even the world. This has hindered the economic and financial crisis since the current round. The rising trade protectionism continues to promote the global free trade process and will surely become a historic new starting point for the process of East Asian integration and even Asian integration.
In the long run and overall, with the free flow of goods, services and investment, cross-border, cross-cultural, cross-species, cross-religious understanding, tolerance and attraction will be further broadened and enhanced, and the driving force of integration will be more Strong, and the degree of economic integration between the two will enter a new era like never before.
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After 10 years of wind and rain, the China-ASEAN Free Trade Area (CAFTA) has been fully launched yesterday, marking the joint formation of China and the 10 ASEAN countries, with a population of 1.9 billion, nearly 6 trillion US dollars of GDP, and a trade volume of 4.5 trillion US dollars. The vast area began to enter the era of "zero tariffs." Under the situation that the Doha round of negotiations is deadlocked and the economic crisis has caused trade protectionism to re-emerge, the completion of this giant free trade zone will further deepen the regionalization of the Asian economy and thus accelerate the integration of the global economy. The establishment of the Free Trade Zone will be held simultaneously on the "China-ASEAN Free Trade Area Forum" held in Nanning, Guangxi on the 7th of this month.