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1、China’sStrategyforFreeTradeAgreements:PoliticalBattleintheNameofTrade(Workingdraft.AllCommentsarewelcome)∗HenryGaoComparedwithEuropeandAmerica,EastAsiaisalatecomerinthenewgold-rushofFreeTradeAgreements(FTAs).Inthisprocess,Chinahasplayedasignificantrole.Thisisnotonlyduet
2、othegrowingeconomiccloutofChina,butalsobecauseChinahastakenaconsciousstrategytopushforeconomicintegrationintheregion.Thus,forthebenefitsofthecountriesintheregion,itisveryimportanttounderstandChina’sFTAstrategy.ThisarticlestartswiththeevolvingpictureofChina’sFTAweb,thend
3、iscussesthekeycomponentsofChina’sFTAstrategy,andconcludesbynotingtheimplicationsofChina’sFTAstrategyontheregionandbeyond.I.OverviewofChina’sFTAsWhileChinaadoptedtheexport-orienteddevelopmentmodelwhenitstartedtheeconomicreforminlate70s,itdidnotcontemplatethepossibilityof
4、enteringintoFTAsuntilmuchlaterforthefollowingreasons:ThefirstreasonisthegeneralhostileattitudetowardsFTAs.Throughoutthe70sand80s,therewaslittleinterestintheFTAs.Itwasonlyintheearly90sthatcountriesaroundtheworldstartedtoengageinFTAsseriously.Indeed,ofthemostimportantFTAs
5、existingintheworldtoday,suchastheEU,NAFTA,MERCOSURandASEAN,mostonlytooktheircurrentforminthe90s.Inparticular,AsiancountrieslagsbehindtheirEuropeanandAmericancounterpartswhenitscomestoFTAs.Thus,evenifChinawereinterestedinFTAsthen,itwouldhavedifficultyfindingnegotiatingpa
6、rtners.ThesecondreasonisthedifferenttradestructureofChina.WhenChinafirststartedtheeconomic∗AssociateProfessor,SchoolofLaw,SingaporeManagementUniversity.Email:gaohenry@gmail.com.1reform,mostofitsexportswenttodevelopedcountriessuchastheUS,ECandJapan.AsChina’sexportvolumew
7、aslow,thesecountriesprovidedsufficientlybigmarketsandtherewasnoneedtolookforexportmarketselsewhere.Forvariousreasons,however,itisquitedifficultforChinatonegotiateFTAswiththesecountries.Astotheothercountries,itdidnotmakesenseforChinatotrytonegotiateFTAswiththemeitherduet
8、othelowtradevolumewiththem.Thethirdreasonistheresourceconstraint.Since1986,thetoppriorityforChinawasresumingit
