The paper applies the trade gravity model to analyse the trade potentialities of China-Japan-Korea FTA, and the research shows that income levels and distance have a significant impact on export tradet, in the meanwhile, there is a huge space for cooperation and potential benefits in China-Japan-Korea FTA; Besides, this paper considers three factors may hinder the establishment of China-Japan-Korea FTA ,including China, Japan and Korea’s focus on sensitive industry, historical and realistic issues and constraints of USA, ASEAN. On the basis of the analysis mentioned above, strategic choice for establishing China-Japan-Korea FTA is proposed.