The AFTA-China regional free trade is a new challenge. Indonesia is now entering the era of AFTA-China international competition. Whereas in free trade AFTA-China has joined through ACFTA (Asean China Free Trade Agreement), in the Framework Agreement on comprehensive Economic Cooperation Between the Association of South East Asian and The People's Republic of China (Asean-China). The Indonesian government and China will cooperate in the industrial sector, with the hope that the cooperation between the two countries, for Indonesia, can encourage Chinese investment in Indonesia, especially cooperation in industrial technology including trade. Labuhan Batu is a district located in the province of North Sumatra (Indonesia), where the regional potential is such as agriculture and plantations, facilities and infrastructure are quite superior and have great potential in responding to AFTA-China international competition, especially post-expansion with the hope of existing potential. the area is ready to compete in the international market.