| For over three decades since the reform and opening-up, China not only has been maintaining a high economic growth rate but also has strengthened its comprehensive national power. In the light of the opening-up economic strategy of combining "bringing in" and "going global", China's economy has become more vigorous and internationally competitive. Among the various target locations in which China can choose to invest, ASEAN as a union should not be ignored. China is the largest developing countries in the world and ASEAN composed by the developing countries is the most successful economic alliance. The two economies are the most active areas in current global economic development and are making great impact on the world economy. At present, China has been gradually changing the big manufacturing country to powerful manufacturing country and the industrial structure has been transforming from labor-intensive form to technological and capital-intensive form. Financial services in Singapore and Malaysia; machinery and electronics industry in the Philippines, Indonesia and Thailand; textile industry in Vietnam, Mymmar, Cambodia has expanded rapidly in Asia. In terms of resource endowment and industry structure, complementary relations play a more important part than competitive relations in the development of economy between China and ASEAN. As a result, bilateral trade and investment bring ample and potential development opportunities for China and ASEAN. From the geopolitical terms, China and ASEAN are neighbors, and it is essential for China to keep in good touch with ASEAN in politics and economics in order to maintain China's economy in stable development.In the above context, it is both theoretically and practically meaningful to study China's outward FDI to ASEAN. The theoretical meaning lies in that this study will supplement outward FDI of developing countries, especially China's investment to ASEAN, thus providing reference for scholars who study investment between China and ASEAN. The practical meaning lies in that this study will be helpful for Chinese companies to formulate their investing strategies in ASEAN. This dissertation uses comparative approach, classified approach as well as combines the normative study and empirical study approach based on the extensive data and relevant literature home and abroad to systemically explore China's outward FDI in ASEAN. The study mainly focuses on the following points.Firstly, the dissertation briefly summarizes the historical development phases in regard to ASEAN's attracting FDI and China's outward FDI in ASEAN. To begin with, three major phases that ASEAN has experienced in attracting FDI are classified as: Budding Phase (1960-1980), Initial Development Phase (1980-2002) and Mushrooming Phase (since 2003). However, China's outward FDI to ASEAN started rather late, and was at a spontaneous and sporadic stage before 2002. Although the investment volume has increased rapidly since 2005, it is still at the sprout stage. Investment from Chinese companies in ASEAN mainly concentrates on such industries like textile, home appliances, electronics and mining.Secondly, the dissertation analyzes the investment environment in ASEAN. It lays emphasis on ASEAN's political, legal, economic, sociological as well as natural resources. From the political angle, ten countries in ASEAN have different national condition, but they all advocate democracy; from the legal angle, Vietnam, Thailand, Indonesia, the Philippines, Cambodia and Laos belong to the civil law system, while, Myanmar, Singapore, Malaysia. Brunei Darussalam and belong to the common law system. All countries make great efforts to attract FDI and have carried out relevant policies and regulations; from the economic respect, ASEAN members not only have high-income countries, such as Singapore, Brunei Darussalam, but also have low-income countries such as Vietnam, Cambodia, Myanmar, Laos; from the natural perspective, all countries are rich in natural resources and have distinctive features, oil and gas reserve in Indonesia, Malaysia, Brunei Darussalam, coal reserve in Thailand and Vietnam are large. Cambodia, Laos, Myanmar are rich in hydropower resources. The improved environment is a significant factor for ASEAN to attract FDI. In the dissertation, we use TOPSIS ideal solution approach to analyze ten countries investment environment. The result shows that in ASEAN ten countries, Singapore's investment environment is best, followed by Brunei Darussalam and Malaysia and Cambodia's investment environment is the worst.Thirdly, the dissertation states the motivations of China's outward FDI in ASEAN. It analyzes the determinants of outward FDI from China to ASEAN. The result indicates that market size, natural resources, technology, unemployment rate, political risk, bilateral trade and exchange rate are the main factors to affect China's investment to ASEAN. In fact, trade-barriers-eluding type is another important motivation in the process of China investing to ASEAN. All these determinants prove that market-seeking type, resource-seeking type and technology-seeking type and trade-barriers-eluding type, to some extent, reflect the necessity of China's outward FDI to ASEAN. As regards to ASEAN members in different economic development level, China's motivations are various. For example, as to high-income level of ASEAN countries, China's investment belongs to seek technology; as to the middle-income countries, China's investment belongs to seek market size; as to low-income level, China's aim is to seek market size, natural resources, and evading trade barriers.Fourthly, the dissertation analyzes comparative advantage of China's outward FDI in ASEAN. The feasibility of investment, however, is determined by the comparative advantage of China in certain aspects as compared with ASEAN. According to the study, the dissertation concludes that China has comparative advantage in its economic development, but due to the huge number of population in China, GDP per capita is exposed to the medium level among ASEAN members; in the aspect of opening-up, the number of China's foreign trade is much more than all ASEAN members. The volume of FDI in China or China's outward FDI cannot be reached by ASEAN countries; in the aspect of industrial structure, Singapore has approached to the level of developed countries, and other countries still need to adjust their economic structure. China, Thailand, and Malaysia lie in the similar degree of economic development, while the proportion of the tertiary industry is still low, but the overall economic structure is apparently reasonable; in the aspect of innovation ability, China lags behind Singapore, Malaysia and Thailand and are better than the other ASEAN countries; as to capital, China have absolute advantage compared to ASEAN members. The size of China's foreign reserves and deposit are the largest in world, and RMB's international reputation is gradually promoting.Fifthly, the dissertation analyzes the economic effects of China's outward FDI in ASEAN. The economic effects of China's outward FDI to ASEAN mainly lie in the influences on China-ASEAN regional economic integration, China's adjustment of industry structure, progress of technology and development of international trade. Through using various of empirical methods, the conclusions are as follows:with regard to China-ASEAN regional economic integration, it is obvious to promote China's investment to ASEAN, at the same time, China investing to ASEAN may deepen the process of their economic integration; with regard to the adjustment of industry structure, China's outward FDI to ASEAN's financial and manufacturing industries have been playing an important role in optimizing the allocation of resources and upgrading the industries; with regard to the technology progress, domestic R&D investment is the main driving force of technological progress in China, technology gap between China-ASEAN may reflect the relation of China's outward FDI to ASEAN and domestic total factor productivity, meanwhile, existing of technology gap hinder technological spillover from ASEAN to China; with regard to the development of international trade, the relation of China's outward FDI to ASEAN and their bilateral trade is mutually reinforced each other.Finally, based on the above multi-aspect analyses, the dissertation proposes strategies on China's outward FDI to ASEAN from the perspective of industry selection, location selection as well as equity proportion. From the perspective of industry selection, China should give priority to agriculture, mining, manufacturing and information technology. Frcm the perspective of location selection, market-seeking companies may consider investing in Laos's Vientiane, Cambodia's Phnom Penh and Sihanouk, Myanmar's Caching State and Shan State, Vietnam's Hanoi, Malaysia's Malacca, Thailand's Bangkok and Luo Yong Palace and Indonesia's Jakarta. Resource-seeking companies may consider investing in Malaysia's Sabah district for oil palm and rubber, in Sarawak district for oil; in Thailand's Chiang Mai for oil and tin; in Indonesia's Bengkulu province, Riau province, the island of Java, Papua for oil. Technology-seeking companies may give priority to invest in Singapore, Malaysia's Selangor and Thailand's Bangkok, which are not only the most developed areas in ASEAN countries, but concentrate on lots of multinational companies. From the perspective of equity proportion, market-seeking companies that invest in ASEAN had mainly better adopt Greenfield investment and joint venture; resource-seeking companies that invest in ASEAN had better adopt sole proprietorship or majority equity; technology-seeking companies should mainly adopt sole proprietorship.The dissertation tries to seek innovations n the following aspects. Firstly, it uses empirical methods to prove hypothesis that were put forward for studying the determinants of China's outward FDI to ASEAN. The results display that the main reasons driving China's outward FDI to ASEAN are market-seeking investment, resource-seeking investment, technology-seeking investment and trade-barrier-eluding investment. Then, it analyzes the above four types of investment as the main factors for China's outward FDI to ASEAN in practice, and finds that Chinese companies may satisfy their needs to enlarge international market, advance technology, have access to resources and elude trade barriers by investing in ASEAN. Secondly, it compares China and ASEAN's advantages and disadvantages in respect of their economic development, technology and management experience, and capital, and innovatively puts forward the comparative advantage of China's outward FDI in ASEAN. Thirdly, it systematically analyzes economic effects of China's outward FDI to ASEAN based on combing lots of empirical analysis and practical analysis. First of all, By using the dummy variables and the same variables in motivations for analyzing China-ASEAN regional economic integration, the results indicate that China-ASENA regional economic integration may accelerate the steps of China's outward FDI to ASEAN, in the meanwhile, China's outward FDI to ASEAN may promote China-ASEAN regional economic integration development. Then, China's outward FDI to ASEAN's financial and manufacturing industries have been playing an important part in optimizing the allocation of resources and upgrading the industries by using gray correlation method to analyze the eight industries that China invests to ASEAN. Third, it realizes that technology spill from China's outward FDI to ASEAN is apparent more than China's FDI from ASEAN by using DEA method to calculate total factor productivity and two economies technology gap and to analyze the relation between China's outward FDI to ASEAN and China's technology progress. Finally, it uses GMM model to study the relation of China's outward FDI to ASEAN and the conclusion believes that China's outward FDI to ASEAN promote their bilateral trade growth which mean China's outward FDI to ASEAN belonging to trade creation type.The weakness of the dissertation is as follows:firstly, the lack of data. At present, Inadequacies of this article the following aspects:First, a serious lack of relevant data. At present, officials announce the earliest data on China's outward FDI to ASEAN dating back to 1995, and China's earliest record on it in 2003; data in 1995-2003 are from ASEAN Statistical Yearbook. Considering different officials using different statistical method, the data will appear some deviations. The level of economic development among ASEAN members is different, ASEAN-6 have large numbers of relevant data because of their high levels of economic development, while ASEAN-4 are lack of data on account of their in economic development in mushrooming Phase and it leads to some empirical methods not be used. Secondly, the relevant variables are difficult to quantify, which lead to biases in choosing sub-agent variables. For example, in studying the determinants of China's outward FDI to ASEAN, trade-barrier-eluding variable is difficult to quantify and considering the actual investment from China to ASEAN, it selects the number of ASEAN's anti-dumping as its proxy variable which does not take into account technical barriers. Thirdly, some studies are inadequate. First of all, the dissertation makes an effort to analyze China's outward FDI to ASEAN from the aspect of economy regardless of their political and cultural factors. Then, in the process of studying Chinese investment in ASEAN, it cannot make an international comparison with some countries, especially; it pays less attention to the relation between Japan and ASEAN or Korea and ASEAN. It also concerns less on the impact of East Asian economic integration on China investing to ASEAN.
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