Impact of Sino-Australia free trade Agreement's talks on China's dairy industry

China dairy industry has made a great progress, but with urbanization, people's consumption patterns changing, and income levels increasing, China's dairy production is facing various challenges. China has established free trade agreement (FTA) with New Zealand, and at present, Australia intends to establish a free trade zone with China. However, what is the impact on dairy industry in China by Sino-Australia FTA? This paper will use the GTAP model to simulate a variety of scenarios of free trade between China and Australia, and evaluate the impact on domestic production, dairy trade, production and etc. The findings of the paper will offer the significant decision-making references for policy makers.