China Free Trade Research Articles

Public enforcement and corporate maturity mismatch

AbstractThe root of corporate maturity mismatch in developing economies may dwell in the fact that weak contract enforcement capacities suppress financial intermediates' willingness to supply long‐term credit. This study examines the impact of improvements in the legal enforcement environment on corporate maturity mismatch, focusing on the unique setting of China's free trade zones. Using data from non‐financial listed companies between 2010 and 2021, the study investigates how the establishment of FTZs, which signifies an improvement in contract enforcement efficiency, influences firms' financing decisions and maturity mismatch. We find that improvements in the contract enforcement environment significantly discipline the behavior of raising short‐term debt for long‐term investments. The effect is more pronounced for small‐to‐medium‐sized enterprises and non‐state‐owned enterprises, suggesting that such improvements alleviate ownership and size discrimination faced by firms. Mechanism test reveals that access to long‐term loans is the core mechanism. Besides, improvements in public enforcement reduce business risk and enhance firm performance. Strengthening the legal enforcement environment serves as a critical determinant to mitigate corporate maturity mismatch and foster sustained economic development.

Tourism Dance in Cultural Tourism in Hainan Province

With the implementation of China's free trade port policy for Hainan province, cultural tourism will usher in new development opportunities. As an important part of cultural tourism, tourism dance is also facing many opportunities and challenges in this context. The impact of the free trade port policy of Hainan province on tourism dance and the current development of tourism dance in Hainan province be taken as one of the research focuses. Cultural tourism resources and local dance tourism resources in Hainan be briefly organised, and the integration of cultural tourism resources and tourism dance be studied from the aspect of performance creation. Tourism dance be explored in terms of policy support, cultural exchanges and co-operation, market expansion and other opportunities. And it is studied how to cope with the problems of increased competition in the industry, homogenisation of performance works, talent training and quality requirements faced in the process. This paper will fully consider the domestic and international markets to cope with the changes in tourists' aesthetic demand and policy environment, and then to study the creation and development of tourism dance ontology in Hainan province.

The Impact of the New Policy Changes on the Tourism Industry of COVID-19: Evidence from the Chinese Market

The background of the study is about whether the COVID-19 pandemic will have an impact on the industry or not. Secondly, the motivation of the research is to give some suggestions and policies to the tourism industry in response to the COVID-19 epidemic. The influence on the tourism industry can be better analyzed through the example of China's free trade Organization. The two data in this paper are the rise and fall range of stocks before the epidemic and the rise and fall range after the policy liberalization. The data used in the second data is relatively new, because it is about 2023 after the new policy is lifted. Therefore, this study has important practical significance for the development of the industry, especially for the development of tourism. The COVID-19 pandemic is having an impact on the travel industry. It also gives some suggestions for the tourism industry, such as launching more online activities or changing company policies.

Evaluation of the Effectiveness of FTA Construction between China and Countries Along the Belt and Road

The FTA is one of the main strategies for the construction of the free trade area and the bridge of our trade union with other economies. China's strategy of expanding the free trade circle focuses on China and radiates to neighboring countries. Therefore, in recent years, China has been stepping up the integration of the "Belt and Road" Initiative and FTA construction, taking the countries along the "Belt and Road" as nodes, and developing China's free trade zones around the countries along the Belt and Road. In the past two decades, China has achieved remarkable results in the construction of FTAs. The number of FTAs has been increasing, especially the number of FTAs with countries along the Belt and Road Initiative. While actively increasing the number of FTAs signed, China also pays attention to improving the quality of FTAs and pursues to sign FTAs with high quality and high standards. However, on the whole, our FTA also has the problem of the big gap between the rule and standard and the latest economic and trade rules of the country. Therefore, we need to actively expand the space of economic and trade cooperation, widen the space of FTA conclusion, draw closer to the high standard economic and trade rules of international crimes, and explore potential trading partners at the same time.

Research on the Influence of FTZ Policy on Regional Economy

China's free trade zone has achieved relatively mature development, showing a trend of extending from the east to the West. Current studies generally believe that the early establishment of the free trade zone will have a positive impact on the near area, so what about the establishment of the third inland free trade zone? In order to study its economic impact, this paper uses DID method to select the annual panel data of Chinese provinces, cities and autonomous regions from 2006 to 2018, from economic growth, foreign trade and freight volume, etc. This paper evaluates the economic effects of three free trade zones in the middle and upper reaches of the Yangtze River, namely, Sichuan, Chongqing and Hubei. According to the functional orientation of the three FTZ, the mechanism of the three FTZ is analyzed qualitatively. In terms of quantitative research, this paper uses the double difference method to analyze the differences in economy, trade and freight volume after the establishment of the free trade zone by analyzing the coefficients of policy variables and their significance. A robustness test was carried out on the impact of the post-policy implementation on the regional economy and foreign trade, and it was concluded that the three provinces had a positive impact on the regional economy and trade. Finally, relevant development suggestions are put forward.

Has China's Free Trade Zone policy expedited port production and development?

China's free trade zone (FTZ) policy satisfies China's objective demand to get geared to the economic globalization trend and forms an essential part of China's opening-up strategy, creating new opportunities for Chinese seaports. Seaport development is subject to its throughput and the import and export trade scale of the city where it's located, but the growth rates of the two are not synchronized. To identify the impacts of FTZ policies on China's free trade seaports, with port throughput and import and export trade scale of the city taken into consideration, this article selects four Chinese seaports, namely Shanghai Port, Tianjin Port, Guangzhou Port, and Fuzhou Port, which are located in the FTZ establishment earlier, and bases the study on the port throughputs and import and export trade volumes of their cities from 2000 to 2020 for empirical testing with the allometric growth model and linear scale factors. The results show that the impacts of FTZ policies exhibit differences from region to region. Specifically, the FTZ promotion policies have lagging impacts on Shanghai Port and Tianjin Port. The Guangdong Free Trade Zone's policies have a short-term continuous promoting impact on Guangzhou Port's production. In contrast, Fujian Free Trade Zone's policies are a strong stimulus to the development of Fuzhou Port. The empirical test about the FTZ policies' impacts on seaport development will provide a theoretical basis for figuring out the critical role of FTZ in promoting the high-quality development of seaports and boost the coordinated development of ports and urban economies.

Evaluating Foreign Direct Investment Attraction and Location Decisions in China's Free Trade Zones

Evaluating Foreign Direct Investment Attraction and Location Decisions in China's Free Trade Zones

On the Operation Mode and Principles of the Government Management System in Modern Free Trade Zone

The free trade zone is one of the economic functional zones with the highest degree of openness, tolerance, and strictest establishment requirements in the world today. In today's era of continuous development and progress, the free trade area is still of great significance to China's economic development, and the free trade area is still one of the ways for China to increase its economic sources. Therefore, accelerating the construction of a new economic structure in the free trade zone is still of great significance to China's current economic development. Based on this article combined with the current development reality, on the basis of a detailed summary of the significance and existing problems of China's free trade zone construction, the public management system of the modern free trade zone is discussed.

The Internal Relationship and Strategic Docking Between China's Free Trade Zone Services and the "Belt and Road Initiative"

<p>In the context of the continuous deepening of the global economy and the adjustment and reconstruction of international economic and trade rules, China has proposed the development model of the "Belt and Road". The current development of China's "Belt and Road" and free trade zone services are all for better economic development. The strategies proposed are all new explorations of China's economic development in the new period of reform and opening up. China’s free trade zone serves as the economic foundation of the “Belt and Road”, and the “Belt and Road” construction is an extension of the economic development of the free trade zone. The scope of the “Belt and Road” is to strengthen economic cooperation and enhance the economic closeness with other regions, to a certain extent, the promotion of the "Belt and Road" can improve China's status and influence in the international status. Both the "Belt and Road" initiative and the establishment of China's free trade zone hope to realize the freedom of economic and trade activities and promote economic development in a good environment. The two strategies of the free trade zone and the “Belt and Road” strategy have continued to integrate, innovate and develop in terms of cultural exchanges, economic cooperation, and institutional learning. In order to make China's free trade zone and the "Belt and Road" have a deeper development, China still needs to go all out to optimize the construction of related systems in the future. Constantly optimizing the love makes it possible to achieve better results in both the free trade zone and the "Belt and Road", because the two promote the sound development of China's economy in order to provide the country's long-term development strategy with an economic financial foundation.</p>

How can China’s Free Trade Zones Meet the International Advanced Standards?

<p>There is little difference between a free trade zone (FTZ) and a free trade port. Relatively speaking, a free trade port enjoys a wider degree of openness and can be exempted from customs supervision in a border area. Although certain achievements have been made during China's free trade zones construction with the development of global economy, there are still some shortcomings compared with other zones abroad. Therefore, China must build and reform FTZs based on its own economic situation, laws, regulations and market demands if China wants to build a more competitive and open free trade zones to have a stronger influence in the new round of international economic competition.</p>

China's Free Trade Ports: Effective Action Against the Threat of De‐globalization

AbstractWith sluggish external demand and increasing trade protectionism by the USA and the European Union, China is facing severe challenges in implementing its deeper, ongoing reforms. To respond actively to such challenges, the Communist Party of China's 19th National Congress proposed to “promote a new pattern of all‐round opening up.” In particular, the establishment of free trade ports is considered an important means to realize deeper integration with the world economy. This paper discusses the background, the motivation, the possible challenges as well as a feasible path for the successful implementation of free trade ports in China. Based on the international experience, the construction of free trade ports in China requires freer trade in goods, high mobility of talent and free capital flow.

Empirical Analysis on Trade Promotion Effect of “Rapid Clearance”

In the era of low tariffs, the rapid clearance is likely to be an important means to break the trade barriers and promote the development of international trade. This paper summarizes the effect of rapid clearance on international trade in four aspects, and then conducts an empirical study through the export data of 113 countries from 2008 to 2010 and a Heckman two-stage selection model. The results show that rapid clearance plays a significant promotion role in trade participation and trade scale, and through robustness check from multiple perspectives, the conclusions are still valid. Through demand preference effect, cost effect and globalization production network effect, rapid clearance curbs the negative effects of increasingly growing non-tariff barriers to trade, making tariff reduction effect based on multilateral negotiations really exert. In addition, this paper also argues that the establishment of FTA can improve the trade volume between countries by enhancing the transparency of customs clearance efficiency and border management. The conclusions are of important significance to the understanding of the establishment of China's free trade zones and the implementation or provisions of rapid clearance measures in bilateral or multilateral trade negotiations, and a breakthrough in the technical barriers to trade.

Research on the Factors of Trade Growth between China and India <br/>—An Empirical Analysis Based on Constant Market Share Model

Based on 2000-2011 trade data, this paper decomposes the trade growth factors between China and India by using Constant Market Share model (CMS). The conclusion shows that scale effect is always a major factor; the scale effect of the exports growth from China to India is manifested in the industrial finished or semi-finished products, and the competitive effect of primary products is even more significant; however, the growth of economies of scale of Indian exports to China mainly concentrates on primary products, and the competitive effect is the main factor that is restricting the growth of primary products exports, while the competitive effects of industrial finished products increase export. Adjusting the trade structure in order to meet the changes of import demand is an important means to enhance the competitiveness of export products and expand the scale of bilateral trade development. In addition, China and India Free Trade Agreement strategy should be put on the agenda, and the economic integration mechanism should be actively built.

The impact of AC-Free Trade Area on the performance of industrial sectors in Indonesia

ASEAN-China free trade has an impact on economic performance among sectors in Indonesia. One of the sectors affected by the free trade is the industrial sector that is the largest contributor to national income sector in Indonesia. This study is intended to explain the impact of the ASEAN-China free trade on the performance of the industrial sector in Indonesia. This is a descriptive qualitative research aimed to qualitatively analyze and describe the impact of the ASEAN-China free trade on the industrial sector in Indonesia. It can be concluded that the performance of the industrial sector has decreased during the implementation of the ASEAN- China free trade. This is indicated by (1) the contribution of industrial sector to GDP which decreases and the contribution to employment has no significant change, (2) the industrial sector grew on average per year lower than the average growth of GDP, (3) the contribution of the industrial sector in Indonesia's total exports tend to decrease too. Industrial exports grew on average per year lower than the growth of total exports, (4) the contribution to total imports of industrial products Indonesian non-oil imports increases. Imports of industrial products experienced average growth per year which is higher than the growth in total non-oil imports, (5) the percentage of realization of investment (both domestic and FDI) in the industrial sector to total investment in Indonesia also tends to decrease, (6) the percentage of bank extended credit to the industrial sector tends to decrease .

Analysis of China’s Import from & Direct Investment in ASEAN—Based on Gravity Models

China and Southeast Asian nations free trade area was formally established on January 1, 2010. By the end of year 2011, China’s foreign exchange reserves exceeded 3200 billion US dollars. Trade gravity model originates from the law of universal gravitation. Domestic researchers have made empirical studies using trade gravity model of trade between China and Southeast Asian nations. There are also studies of foreign direct investment or Chinese tourist arrivals in Vietnam, using gravity model. However, neither tariff and foreign exchange reserves are taken into consideration in studying China and Southeast Asian nations free trade area, nor gravity model is used in analyzing China’s direct investment and tourist arrivals in Southeast Asian nations. Using econometrics software “Eviews 5.0” and based on a panel data from year 2000 up to 2008, this paper constructs a gravity model, the independent variables of which are gross domestic product per capita of CAFTA countries, foreign exchange reserves of CAFTA countries, squares of southeast Asian nations, and distance between China and southeast Asian nations. And quantitative relationship is made between independent variables and China’s direct investment in Southeast Asian nations, import from Southeast Asian nations, as well as arrivals of Chinese visitors in Southeast Asian nations.

China's Free Trade Agreements with ASEAN, Japan and Korea: A Comparative Analysis

AbstractThe role of China in East Asia's recovery from the recent global financial and economic crisis highlights China's position as an engine of growth for this region. From the viewpoint of China, there are many potential gains from entering into free trade agreements (FTAs) with its neighbors, who collectively form a large and fast‐growing market. In this paper, we qualitatively and quantitatively assess the four main permutations of China's FTAs with East Asian major economies: China–ASEAN, China–Japan, China–Korea and ASEAN+3. We compare the effects of these FTAs on China's output and welfare. Our comparative analysis shows that China will gain from all three bilateral FTAs, while gaining the most from the ASEAN+3. Because forming a region‐wide FTA, such as the ASEAN+3, is expected to be gradual and difficult, China should continue to engage in bilateral FTAs as a medium‐term and alternative strategy. However, in the long term, China should pursue a region‐wide FTA.

China, Free Trade Agreements and WTO Law: A Perspective on the Trade in Services

China's free trade agreements in services are developing at a fast pace. This paper examines the major differences between these agreements and the General Agreement on Trade in Services (GATS) and their relationship with the law of the World Trade Organization (WTO). Although they are modeled on the GATS, amongst other things these agreements differ in their scope and coverage, origin rules, transparency and good governance.