China’s Participation in Regional Trade Agreements: Benefits and Challenges

Abstract

Through an analysis of regional trade agreements (RTAs) and trade data, this study examines the evolution and distinctive features of China’s participation in the integration process are revealed. This is manifested in China’s engagement in economic integration. The trajectory of China’s involvement in trade agreements reflects a shift from: (1) bilateral to multilateral agreements; (2) preferential trade agreements to comprehensive free trade agreements (FTAs); (3) agreements focused on trade in goods to “FTA+” frameworks; and (4) regional to trans-regional mega-agreements. The benefits for China include: expansion of exports and enhancement of their technological sophistication; strengthening of China’s position as a leading investor and regional power in the Asia-Pacific. However, the following challenges persist: trade barriers and the need for institutional adaptation to the requirements of the agreements.