With the rapid expansion of economic globalization and the blooming growth of regional FTA, different countries enhance the international trade by signing FTA. Under the structure of FTA, how to use FTZ effectively as a trading tool becomes a great issue to every country and economic unit. As of now, major countries or economic units in the world mostly have FTZs or similar trade zones, and more, these have become the leading international trade hubs and trade centers. They are also the comprehensive economic zone where commerce trade, manufacturing and R&D combined together. Therefore, FTZ becomes more and more important in the Global Trade today. The objective of this essay is to study the ASEAN-China Free Trade Area, which was established by China and ASEAN. Under this frame, it would analyze the development of FTZ, with Hong Kong, Singapore, and Kaohsiung Harbor as examples, and to explain how Taiwan can prevent from being marginalized under the ASEAN -China Free Trade Area frame. The study for the development of FTZ under ASEAN -China Free Trade Area frame came out with the following conclusion: 1.To face the challenge of ASEAN -China Free Trade Area, Hong Kong is advantageous with its simplified administration processes, operations flexibility, familiarity with China market, as well as its intermediary function of trade. 2.The establishment of ASEAN -China Free Trade Area gave Singapore’s FTZ both preferences from FTA and FTZ. As per macro- economic benefit point of view, the advantage is greater than the drawback. 3.Taiwan can use Kaohsiung FTZ effectively to compensate the discontent raised by the inability of signing FTA with its major business associates, and can prevent from being marginalized under the ASEAN -China Free Trade Area frame.