An Effective Way for Northeast Asia to Defuse the Adverse Impact of US-China Trade War : Focus on South Korean-China-Japan FTA

As the world's two largest economies, there is no doubt that the trade war between China and the United States will cause a negative impact on the world economy. Concerning the economic gross amount, Northeast Asia Region (Hereinafter referred to as “NEAR”) is one of the top three economic circles in the world, how can NEAR defuse the adverse impact of this trade war on the regional economy? The successful experience of the Europe Union (EU) and the North American Free Trade Agree- ment(NAFTA) shows that Free Trade Area (FTA) might be a good choice to promote regional economic integration and defuse the adverse impact of this trade war. If the FTA among South Korean, China and Japan could be established, it might be of great practical significance to maintaining the prosperity and stability of the regional and even the world economy. In fact, as the largest economies in this region, South Korea, China and Japan have already had frequent commercial intercourse and strong economic complementarity. And Asia, especially NEAR countries was expected to be the most dynamic developments area all over the world in the 21st century. Which reflects as the new economic development direction in South Korea ,the rapid economic growth of China and the economic recovery in Japan. The regional economic integration in NEAR will push all countries in this region to get more stable economic growth, which also contribute a lot to raise the regional status in the international economy. This paper focus on the establishment of South Korea-China-Japan FTA (Hereinafter referred to as “KCJ’s FTA”) among , take the exploratory development method, try to proof that FTA among this three countries is an effect way to promote regional economic integration and defuse the adverse impact of this trade war.