Progress of GMS Economic Integration and its Carrier Role in the Construction of CAFTA

In recent years, regional economic integration gains increasing attention in the world. Both China and other East Asian countries have played an important role in promoting various cooperation mechanisms in this area. In 1992, ADB proposed to initiate GMS economic cooperation program, which brought forward GMS economic development strategic plan. China\u27s Yunnan province is one of the parties participating in GMS cooperation program. The Framework Agreement on China-ASEAN Comprehensive Economic Integration Signed in November 2002 activated the progress of the construction of CAFTA. This paper demonstrates the current status of GMS Economic Cooperation and the China\u27s active participation in promoting the economic integration in East Asian area. It argues that the GMS economic cooperation can help to pave the way for the construction of CAFTA by bridging the economic development gap and creating sound investment and free trade environment. The paper also points out that the cooperation mechanisms of GMS and projects driven programs have the demonstration effects on the further establishing of CAFTA. It concludes that the GMS cooperation is the carrier of the construction of CAFTA, which will also motivate the SMEs to participate in the regional economic integration