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This paper examines political-economic purposes of China’s FTA policy and analyze the determinants for China to select its FTA partner countries. There are two broad categories - (1) diplomacy and security and (2) economic interest. From the first point of view, China appears to have located herself in the center of the Eurasian FTA in the long-term blueprint to parallel EU, FTAA. It appears that China want to acquire a grand-regional hegemony over the whole of Asia, through strengthening its leadership and to offset the US influences in the region to form a Sino-centric regionalism. In terms of economic interest, main concerns include: securing energy and raw material sources overseas; evading trade dispute; inducing recognition of China’s MES(Market Economy Status); enhancing industrial competitiveness; facing pressure from the US on trade sanctions against China; and promoting the West China and Northeast China development, etc. China seems to prioritize FTA partner countries among the countries in the vicinity, developing countries or third world countries and non Western ones. More specifically, China tends to prioritize countries that can be used as roundabout routes for its export to the western markets, countries that will help China to secure sources for energy and raw materials, and also those that can give an edge to the enhancement of industrial competitiveness and promotion of the West and Northeast China development. As to Sino-Korea FTA, China’ purposes appear to be centered on non-economic factors, rather than economic interest. Especially, China appears to pay heed to a leadership in intra-regional FTA initiatives, being afraid of losing initiative to the US or Japan


This paper examines political-economic purposes of China’s FTA policy and analyze the determinants for China to select its FTA partner countries. There are two broad categories - (1) diplomacy and security and (2) economic interest. From the first point of view, China appears to have located herself in the center of the Eurasian FTA in the long-term blueprint to parallel EU, FTAA. It appears that China want to acquire a grand-regional hegemony over the whole of Asia, through strengthening its leadership and to offset the US influences in the region to form a Sino-centric regionalism. In terms of economic interest, main concerns include: securing energy and raw material sources overseas; evading trade dispute; inducing recognition of China’s MES(Market Economy Status); enhancing industrial competitiveness; facing pressure from the US on trade sanctions against China; and promoting the West China and Northeast China development, etc. China seems to prioritize FTA partner countries among the countries in the vicinity, developing countries or third world countries and non Western ones. More specifically, China tends to prioritize countries that can be used as roundabout routes for its export to the western markets, countries that will help China to secure sources for energy and raw materials, and also those that can give an edge to the enhancement of industrial competitiveness and promotion of the West and Northeast China development. As to Sino-Korea FTA, China’ purposes appear to be centered on non-economic factors, rather than economic interest. Especially, China appears to pay heed to a leadership in intra-regional FTA initiatives, being afraid of losing initiative to the US or Japan