The Asean-China Free Trade Agreement Came Into Effect In

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The Heads of State and Government of China and ASEAN (AMS) signed the Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN at the sixth China-ASEAN Summit in November 2002. In November 2004, Chinese Premier Wen Jiabao and AMS leaders witnessed the signing of the Agreement on Trade in Goods of the Sino-ASEAN Free Trade Agreement, which entered into force in July 2005. In January 2007, the two sides signed the Agreement on Trade in Services, which entered into force in July 2007. In August 2009, both sides signed the investment agreement. The establishment of the China-ASEAN Free Trade Area strengthens the close economic and trade relations between the two sides and also contributes to the economic development of Asia and the world as a whole. The amendments to the free trade area framework mainly concerned Vietnam. These changes should help Vietnam to reduce tariffs and set deadlines as guidelines. [14] China first proposed the idea of a free trade area in November 2000. The Heads of State and Government of ASEAN and China therefore decided to examine economic integration measures in the region[1][2] The following year, they advocated in Brunei the creation of an ASEAN-China Free Trade Area. [3] Only China has managed to attract investors to its growing economy, as it has the main determinants of investment.

China`s market potential is already well established and its performance on some indicators of institutional quality and macroeconomic and political stability is better than for other ASEAN members. And despite the legal framework deemed insufficient, high inflation and pervasive bureaucratic bureaucracy and corruption, foreign investors consider the long-term benefits of investing in China more than its brief problems. As of January 1, 2010, the average rate of tariffs on Chinese products sold in ASEAN countries increased from 12.8% to 0.6% until the implementation of the free trade area by other ASEAN members. . . .

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