Nov. 27 – China has instructed businesses to brace for the upcoming Free Trade Area with Southeast Asian Nations (ASEAN) when it takes effect in January 1, 2010.

The FTA will implement zero-tariffs on 90 percent of products traded between China and the ASEAN moreover improving Chinese access to the Asian market. “Chinese enterprises should make full preparations for competitions brought by zero-tariff products imports from the ASEAN,” Xu Ningning, executive secretary general of China-ASEAN Business Council (CABC) was quoted by Xinhua during a symposium for entrepreneurs in machinery, auto mobile and steel sectors.

Xu advised Chinese businesses to do their own market research and heed each country’s policies for the improvement of bilateral trade. The FTA is the third biggest free trade area globally after North American Free Trade Area and the European Free Trade Area.

“After entering the ASEAN market, companies should abide by local industry regulations and establish sound reputations for quality and service instead of blindly pursuing profit by any possible means,” Xu said. The FTA will open a market covering 1.9 billion people with an estimated  gross domestic product of US$6 trillion.