The Effect Analysis of China-ASEAN Free Trade Area-Based on the Industry Perspective

In this paper, we made the qualitative judgment to the trade effect of China-ASEAN Free Trade Area (CAFTA) of China from the trade situation of total amount, country and structure level. Then, we used trade gravity model to quantitatively study its' different trade effect among industries. On the basis of the SITC second edition three code product classification by Lall in 2000, we divided the products into five categories to do the research. The result shows that the establishment of the free trade area strengthens bilateral trade links, promote trade status, optimize trade structure and establish the industry benign entrainment. Among them, the trade effect to high-tech products is the most significant. At the same time, it enlightens us to seize the period of strategic opportunity of "Maritime Silk Road In 21st Century", optimize industrial structure and enhance international competitiveness.