The Chinese government has also viewed that the FTA would help strengthening political ties with countries, which may be affected by the fast growing Chinese economy.

Officials said, for instance, the planned China-ASEAN free trade area is a major decision made by both the Chinese and ASEAN governments from a long-term and strategic viewpoint.

China and ASEAN agreed to work faster toward a free trade agreement in 2010, thus creating the world's most populous market with nearly 2 billion consumers.

China launched an early-harvest programme with Thailand in October 2003, which eliminated or reduced most of the tariffs on fruits and vegetables.

Being a member of World Trade Organisation, China hopes to promote foreign exchange earning through the diversity of its export markets. Thus, China is in negotiations with various countries which have potential for Chinese businesses.

Southern African Customs Union (ASCU) and China signed an agreement in June to start the FTA talks. The same is taking place with GCC (Gulf Countries Council). The six GCC member states are Kuwait, the United Arab Emirates, the Kingdom of Saudi Arabia, the Kingdom of Bahrain, the Sultan State of Amen and the State of Qatar.

During Chinese President Hu Jintao's visit to Australia in Oct, 2003, the two countries reached a trade and economic co-operation framework to kick off FTA negotiations. Australian Trade Minister Mark Vaile said the study will be completed in the first half of 2005.

New Zealand also signed an agreement with China last April to initiate the FTA feasibility study.

Asean, South Africa and New Zealand have granted China this status. Australia will make the decision pending the study.