As the stagnancy of Doha Round of WTO in recent years, FTA (Free Trade Agreement) has drawn great attention for its convenience in international trade and has been adopted by more and more countries in regional economic cooperation. China’s FTA construction was started late but has been developed rapidly, especially great progresses being made in Sino-Australia FTA negotiation .
This research analyzes the significance of Sino-Australia FTA negotiation through a study of Sino-Australia’s economic complementarity. Its major point is to assess the potential impacts of the Sino-Australia FTA construction to China and Australia’s economics. After the achievement of Sino-Australia FTA, the important impacts may: ①enlarge and widen China’s foreign trade; ②reduce China’s trade frictions with other economies; ③promote China’s investment liberalization, etc. In this case, China should harmonize the relationship between WTO and FTA, keep on enlarging and widening the two country’s economic complementarity, and pay more attention to the deteriorated international trade conditions.