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By Luo Yuze, Member of the Research Team on "The Development Trend of China's Opening-up Strategy with Its Economy Becomes Remarkably Enhanced”

Research Report No.78, 2016 (Total 4961)2016-6-6

Abstract: At present and in the days to come, regional economic cooperation will witness the following features. First, there will be more large-scale free trade zones (FTZs) with large economic entities in the main. Second, an increasing number of inter-regional FTZs will appear and the “Spaghetti bowl phenomenon” will become more tangible. Third, under the impact of “model effect” and “bandwagon effect”, the construction of regional economic cooperation mechanism will experience an enhanced trend of liberalization and facilitation. And fourth, the cooperation will relax restrictions on market access and allow foreign economy to enter local markets. To promote the regional economic cooperation, China should focus on three major objectives such as economic benefits, national security and a bigger say in international affairs. It is necessary for China to take the Belt and Road Initiative as the primary task shored up by international cooperation on industrial capacity, bring into play the advantages including an adequate number of supporting industries, sufficient foreign exchange reserves and outstanding infrastructure construction ability, strengthen the construction of soft power, and utilize financial instruments to integrate the cooperation between different countries and in various fields so as to complement and assist each other. Only in this way can China increase its comprehensive competitiveness and play a leading role in regional economic cooperation.

Key words: regional economic cooperation, leading role, strategy