China-ASEAN self-trade zone's double-edged sword

Source: Internet
Author: User
Keywords China ASEAN China free trade Area
Tags added developing developing countries development double-edged sword economic enterprises enterprises can
The acceleration of the process of China-ASEAN FTA and East Asian economic integration means that Chinese enterprises are involved in international competition actively or passively, and the Chinese enterprises that have not fully prepared their thinking are bound to bring pressure and challenge Wen/Liu Tao January 1, 2010, China-ASEAN Free Trade Area fully launched, It marks a zero-tariff era for a huge market that covers 1.8 billion people, nearly 6 trillion trillion in gross domestic product, and 4.5 trillion dollars in trade.  It is the world's third largest free trade area, the most populous free trade area and the largest free trade area composed of developing countries. The start of China-ASEAN FTA can promote economic and trade exchanges between China and Southeast Asian countries, improve the welfare level of the bilateral residents, and create a rare opportunity for the development of Chinese enterprises. First of all, the elimination of tariff barriers, will bring obvious "trade creation" effect, for Chinese enterprises to go out to create a more convenient platform for development. China has risen from ASEAN's sixth largest trading partner to its third-largest trading partner since the first results of the FTA, the "Early Harvest Plan" and "Trade agreement for goods", and bilateral trade volume rose from $78.2 billion in 2003 to $231.1 billion in 2008 and an annual growth of 24.2% per cent, according to the Ministry of Commerce ASEAN countries have higher production costs for consumer goods and machinery, insufficient capacity for Chinese enterprises to provide a broad market space for export, while China's imports from ASEAN crude oil, refined oil, plastic raw materials, natural rubber, iron ore and coal and other energy-oriented commodities, but also to alleviate the shortage of productive raw materials and energy gap in China's plight. In addition, since the completion of the trade zone, China and ASEAN will also promote agricultural technical cooperation and agricultural trade development. From this year onwards, China and the Brunei, the Philippines, Indonesia, Malaysia, Thailand, Singapore and other 6 old ASEAN member countries, will have more than 90% of the products implemented zero tariffs, China's average tariff on ASEAN will be reduced from the current 9.8% to 0.1%, the above ASEAN member countries on China's average tariff will be from To 0.6%, while 4 new ASEAN members, including Vietnam, Laos, Cambodia and Burma, will achieve zero tariff targets for 90% of Chinese products in 2015. Obviously, this will greatly expand the scope of bilateral trade and economic exchanges, and secondly, China-ASEAN FTA will further promote the whole East Asia trade and financial integration process. After the proposal of China-ASEAN FTA, Japan, South Korea, India and other countries have also launched free trade negotiations with ASEAN countries.  As the "axis-spokes" effect emerges, a more expansive East Asian free trade circle or an East Asian Economic community is expected; Finally, the expansion of China-ASEAN FTA and bilateral trade will also accelerate the internationalization of the renminbi. On the other hand, the acceleration of the process of China-ASEAN FTA and East Asian economic integration means that Chinese enterprises are involved in international competition actively or passively, and it is bound to bring pressure and challenge to some Chinese enterprises that have not fully prepared their ideas: how to deal with Japan, KoreaChina, India and other countries the problem of fierce competition in products. After the tariff is cancelled, on the surface, China's mechanical and electrical products, complete sets of equipment, such as a series of High-tech products into the ASEAN countries become easier; but at the same time, Japan, South Korea and other countries are also entering the ASEAN market, "Made in China" in the ASEAN market will still accept the brutal quality competition, Chinese enterprises can Depends entirely on the quality of the product and the credibility of the enterprise, and secondly, how to explore China's advantages in service trade compared with the advantages in the trade of goods.  Service trade, especially high value-added and High-tech modern service trade is still the weakness of China's foreign trade. At present, the traditional service industry in China is still in the stage of low value-added development, the ability of expanding international market and coping with foreign competition is weak, mainly depends on the traditional service industry of tourism and transportation, the High-tech, high value-added financial, insurance, consulting, computer information services and other projects are obviously lack of international competitiveness. On the scale of enterprises, China's service trade enterprises generally small, technical level is not high, relatively backward management.  For example, China's passenger service enterprises have less international routes, business started late, freight transport enterprises in the transport costs, pricing capacity and service levels and other well-known international freight enterprises have a large gap; tourism enterprises in the maintenance of product quality and publicity and promotion are far behind the Thai and Malaysia and other ASEAN counterparts. In the face of opportunities and challenges, Chinese enterprises can only accelerate the adjustment of industrial structure, improve the technical content, get rid of the traditional dependence on exchange rate, export tax rebate and other government support of the "Wait, rely on," thought; at the same time, enterprises should also learn and adapt to new trade rules, such as the active application of the Certificate of origin In order to obtain the maximum preferential treatment for tariff reduction.
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