25 May 2017 | 08:18 am GMT +7
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    • ASEAN-China Free Trade Area

           

      China is the world’s most populous country and is home to the world’s largest consumer market at 1.3 billion.  It is the world’s second largest economy in terms of GDP, behind the United States of America.   It is known for its manufactured exports. 

      In 2002, China and ASEAN Countries signed the Framework Agreement on Comprehensive Economic Cooperation which formed the legal basis for the creation of the ASEAN-China Free Trade Area (ACFTA).    Under ACFTA are three agreements aiming for free flow of goods, services, and investments. 

      • ASEAN-China Trade in Goods Agreement.  Provides for tariff reduction and elimination for tariff lines categorised as either ‘normal track’ or ‘sensitive track’.
      • Agreement on Trade in Services.  Aims to liberalise and substantially eliminate discriminatory measures with respect to trade in services among the parties in various service sectors.
      • Investment Agreement.  Seeking to promote and facilitate investment flows within the China and the region, this agreement provides elements that would ensure fair and equitable treatment for investors, non-discriminatory treatment on nationalisation or expropriation, and compensation for losses. 

       

      Quick Look on ACFTA
      Market and GDP
      Largest free trade area in the world with a combined market of 1.94 billion and GDP of about US$ 9.5 trillion (in 2011).
      Trade Value
      China is the region’s largest trading partner. Trade between ASEAN and China reached US$280 billion in 2011, representing 11.7% of ASEAN’s total trade.
      Exports to China
      Electrical equipment, computer/ machinery, lubricants/fuels/oil, organic chemicals, fats and oils, and rubber, mostly intermediate goods to products that China exports. 
      Foreign Direct Investment
      China is among ASEAN’s top 10 sources of FDI.  From 2009 to 2011, FDI from China reached US$ 10.67 billion. 

       

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