The Framework Agreement for the ASEAN-China Free Trade Area was initiated in 2002. It is the first ASEAN Plus pattern free trade agreement in East Asia. To understand the cultural and historical bonds between China and Southeast Asian States, and contemporary Chinese regional political economy in building the ACFTA, this paper reviews the tributary trade and ancient Chinese diplomacy between China and the neighboring States. The primary purpose of this research is to show how the ACFTA is in the interests of all parties in the course of China’s fast economic and political growth. The following article highlights the ACFTA provisions by examining trading agreements in goods, services and investment in the context of the corresponding WTO provisions. In the end, it suggests the possible resolutions for achieving a win–win and interdependent ASEAN–China Free Trade Area.

I. Introduction
II. Building the ACFTA
    A. Similarity between the Tributary Rules and Essential Featuresof the ACFTA
    B. Building a Good Neighborhood and Nurturing Mutual Trust
III. The Trade in Goods Agreement
    A. Comprehensive FTAs with a Broad Range of Product Coverage
    B. Legal Arrangement beyond the WTO Provisions
    C. Recognition of China’s Market Economy Status
IV. The Trade in Services Agreement
V. The Trade in Investment Agreement
    A. Is China Squeezing the ASEAN FDI Inflows?
    B. Liberal, Facilitative, Transparent and Competitive Investment Regime
    C. Dispute Resolution and Settlement
VI. Hedging But Engaging Rising China
    A. Suspicion of China’s Generosity
    B. Transformation of a Zero-sum Game into a Win-Win Cooperation
VII. Conclusion
References

• Jingjia Ke