The Regional Economic Integration of China

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The Regional Economic Integration Of China
Student No.:201113472
Module Name: Regional International Business
Module Code:56350
Module leader: Dr. Qing Lu

Background
Since China implement the policy of reform and opening up in the late 1970s, Chinese has achieved explosive economic growth more than 10 percent per year frequently. In 2009 China became the second-largest economy in the world, just behind the United States. But at the same time, China suffered from the global financial crisis in 2009. Although China's economic develop have is facing the challenge of the economic globalization, but China seems to more tend to develop the regional economic integration.

The regional economic integration blocs which China joined
The regional economic integration bloc means according to a geographic area that established by two or more countries agree to reduce barriers to trade and investment. In present day, China has built 10 free trade area within 29 countries all over the world, included the Association of Southeast Asian Nations,the Asia Pacific Economic Cooperation, Chile, Pakistan, New zealand, Singapore.

APEC: Asia Pacific Economic Cooperation, the first meeting of this group in 5-7th.11.1989.Australia, American, Canada, Japan, Korea, Newzealand, and the 6 countries of ASEAN in the Australia and announced APEC was set up. The APEC named in 1993. China joined in the 1991. "We are united in drive to build a dynamic and harmonious Asia-Pacific community by championing free and open trade and investment, promoting and accelerating regional economic integration, encouraging economic and technical cooperation, enhancing human security, and environment. Our initiatives turn policy goals into concrete results and agreements into tangible benefits."( Griffin, R ) It is the final purpose of APEC.

CAFTA: China-ASEAN Free Trade Agreement, this agreement is the first agreement that China make with other countries, and the largest free trade agreement area which involved 1.85 billion populations, and 14 million squares. This trade area activated on 1st Jan 2010.It's purpose is to promote economic development of these countries.

Other free trade agreements: There are some more agreements that China signed is China-Pakistan FTA, China-Chile FTA, China-New zealand FTA, China-Singapore FTA, China-Peru FTA, China-Costa Rica FTA. These free trade agreements was signed separately in November 2006,18th November 2004,7th April 2008,23rd October 2008, 28th April 2009, November 2008 respectively.

Political Factors
Join into the regional economic integration benefit China to build a well international environment. The close economic co-operate not only can improve a regional area's countries' economic developing and social progress, but also can build a good political atmosphere. Join intoAccess of the regional economic integration help China to remove or relief the dispute and conflict between the countries, additionpromoting the trust with others. Since implement the policy of reform and opening up, China insist to focus on developing economic, actively put up the peaceful international environment. With the deep of reform and further opening up, China need to use the international resources to better exploit the advantages. China pursues an independent foreign policy, and actively participates in regional economic cooperation, promote the development friendly relationship with neighboring countries, creating a favorable international environment, can greatly improve China's international competitiveness and international status.

For example,China chose Chile to sign a bilateral free trade agreement,which the first and foremost reason is the political mutual trust between the two countries. Chile is the first South American country to establish diplomatic relations with China, the first to support China to restore the legitimate seat of the United Nations. The first to signed a bilateral agreement for China's...
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