In the average of all signed PTAs, China`s FDI is 4.8 out of 7, indicating that its approach to trade agreements is not as superficial as some researchers suggest. However, these values vary considerably from one partner group to another: the average FDI for Hong Kong, Macao and Taiwan is only 2.3; 3.9 for developing countries and 5.3 for industrialized countries. The most frequently used clauses in China`s trade agreements concern the total elimination of tariffs and standards, while issues such as government procurement, competition and intellectual property protection are usually omitted. The People`s Republic of China has concluded bilateral trade agreements with the following blocs, countries and their two special administrative regions:[13] In addition, we have compiled data on export flows, considering the problem from the point of view of exporting economies, the annual share of energy exports to China and China in the total energy exports of economies (EXpFlUn, ExpFlVal, ExpShUn and ExpShVal). Finally, we assess the dynamics of trade intensity indices (ITIs) for certain flows of energy products. These results indicate that the balance of power in bilateral energy trade is skewed towards China. It can increase energy imports and redirect energy exports from its partners without committing to a PTA – by simply applying unilateral tariff reductions for a given product group. This makes it difficult to view PTAs as an instrument of China`s energy security strategy. In contrast, energy exporters targeting the Chinese market would benefit from an ASPT that will give China leverage in the negotiation process. However, the proposed strategy of focusing on reducing import duties for target groups rather than negotiating a comprehensive and comprehensive agreement is generally in line with China`s approach to developing preferential trade relations. Open regionalism and trade cooperation between the world`s two main developing countries, the People`s Republic of China (PRC) and India, can foster external development and intraregional trade based on comparative advantages and available factor endowments. Given the recent wave of global subregional and bilateral trade cooperation and the recent suspension of the Doha negotiations by the World Trade Organization, opportunity costs could increase if they do not lead to greater trade integration between the PRC and India.
Riley, B. and Miller, T. (2015), “2016 Index of Economic Freedom: yet more evidence of free trade`s benefits,” The Heritage Foundation, available at: www.heritage.org/international-economies/report/2016-index-economic-freedom-yet-more-evidence-free-trades-benefits (accessed November 21, 2016). List of negotiated agreements. Agreements that, until now, are only discussed without the formal action of the parties concerned, are not mentioned. China`s tariff concessions also rely heavily on the negotiating counterparty. As a general rule, China commits to increasing the percentage of products by zero inches with partners who make similar commitments. As a result, China`s trade agreements with developing countries generally have higher rates of duty than those with industrialized countries (see Table I). . . .