Abstract:
This research describes the economic relations between China and Indonesia. Especially about the agreement between China and Indonesia in ASEAN to create a special economic zone (Free Trade Zone)between that countries in China-ASEAN free Trade Area (CAFTA). Motivation and interest of China And ASEAN ( include Indonesia) deal to create special economic Free Trade Zone also describes about the policy of China and ASEAN to increase and improve their economy. This paper focus on CAFTA implementation effect to the industry of Cibaduyut’s Leather shoes, caused by China’s imitation leather which is imported to Indonesia’s domertic market. The theories applied in this research are Comparative advantage by David Richardo. The process of import imitiation leathear shoes by China to Indonesia cause the account of degradation of leather shoes industry aspect in cibaduyut as the effect of CAFTA 2010 implementation
