China has become one of the top economies in the world and has established itself as a global leader in trade. Since opening up to the world in the 1970s, China has formed numerous trade agreements with other countries. In this article, we will take a closer look at some of the major trade agreements that China has formed in recent years and their significance.
1. China-ASEAN Free Trade Area (CAFTA)
China-ASEAN Free Trade Area (CAFTA) is a free trade agreement between China and the Association of Southeast Asian Nations (ASEAN). The agreement was signed in 2002 and has been fully implemented since 2010. CAFTA is the third-largest free trade area in the world and covers a population of over 2 billion people. The agreement has led to increased trade between China and ASEAN, which has surpassed $500 billion in recent years.
2. China-Australia Free Trade Agreement (ChAFTA)
The China-Australia Free Trade Agreement (ChAFTA) is a bilateral free trade agreement between China and Australia. The agreement was signed in 2015 and has led to increased trade between the two countries. Under ChAFTA, over 85% of Australian goods exported to China enter duty-free. China is Australia`s largest trading partner, and ChAFTA has further strengthened the economic relationship between the two countries.
3. China-Korea Free Trade Agreement (CKFTA)
The China-Korea Free Trade Agreement (CKFTA) is a bilateral free trade agreement between China and South Korea. The agreement was signed in 2015 and has been implemented since 2016. CKFTA has led to increased trade between the two countries, with South Korea being China`s fourth-largest trading partner. The agreement has also eased the trade restrictions and tariffs between the two countries.
4. Regional Comprehensive Economic Partnership (RCEP)
The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement between the ten ASEAN countries and five other countries, including China. The agreement was signed in 2020 and covers a population of around 2.2 billion people. It is the largest free trade agreement in the world and has the potential to boost economic growth in the region. RCEP has lowered tariffs and eased regulations on trade between the member countries.
In conclusion, China has formed many trade agreements with other countries, which has helped it become a global leader in trade. These agreements have led to increased trade and closer economic relationships between the countries. As China continues to grow and develop, we can expect to see more trade agreements being formed in the future.