Impact of FTA on Business Activities——A Survey on Firms in the People’s Republic of China

　　Abstract: Since China’s entry into the WTO in 2001, establishing FTA links with other countries has been regarded as an important international strategy by Beijing. Conventional wisdom suggests that FTAs improve the mutual economic environments of signatory countries, as well as facilitate trade and investment liberalization. Considering that China has already signed on to many FTA pacts, the following questions are: what are the utilization rate and impact level of FTAs on business activities? Based on survey data collected from 232 firms in China, this analysis unveiled a relatively low rate of FTA utilization amongst those polled. In whichever case, the primary reason cited remains the “lack of information on FTAs.” This paper hence forwards a policy suggestion that interested public and private enterprises should consider investing in FTA services programs and institutions, and offer market-based FTA consultation services to firms. 

　　Authors: Zhang Yunling, Director and Professor, Academic Division of International Studies, Chinese Academy of Social Sciences; 

　　Shen Minghui, Associate Research Professor, Institute of AsiaPacific Studies, Chinese Academy of Social Sciences; 

　　Liu Dewei, PhD Candidate, Graduate School, Chinese Academy of Social Sciences