By January 1，2010，China-ASEAN free trade area has been formed，which is the third largest free trade area in the world after the EU and NAFTA，and is the largest free trade area among developing countries． China-ASEAN free trade agreement has the trade volume between China and ASEAN increased significantly，promoting the economical integration in East Asia． At first glance，CAFTA seems to be an agreement between China and ASEAN as an independent entity． Since ASEAN has no international legal personality as well as the treaty-making power，it is the fact that CAFTA is a collection of bilateral agreements between China and individual EAN members． The legal nature of ACFTA will be reflected in the ACFTA dispute settlement mechanism and will have profound implications on the implementation of CAFTA obligations． International Law School，Southwest University of Political Science and Law，Chongqing 401120，China