Foreign Direct Investment In The Association Of Southeast Asian Nations From China

From 1960's foreign direct investment have made a great progressin the global scope. The clearest signs of institutionalized reform and opening arethe changes that have been made in Chinese foreign trade policy. In 1979 Chinacenter government encouraged state enterprises to invest in the fremdness. Afterthe sixteenth congress of China communist party, China center governmentencouraged all kind enterprise to invest in the fremdness. From then on foreigndirect investment made a great progress in China. By far China' GDP rank thesixth in the world. Up to May 30, 2006 China's foreign exchange reserve reach to853.6 billion dollars. China's foreign exchange reserve is a goods and materials'foundation. Primer minister Zhu signed "business corporation frame agreementbetween china and southeast Asia country union" in October 4th, 2002. theydecided to build China-Association of Southeast Asian Nations freedom traderegion. It will be a great opportunity to China. Foreign direct investment in theAssociation of Southeast Asian Nations from China have has great potential. TheAssociation of Southeast Asian Nations should be an important investmentobject for China.The paper introduced the theory of foreign direct investment, then reviewed thestatus quo of foreign direct investment in the Association of Southeast Asian. Thepaper analyses the strength and weakness of foreign direct investment in theAssociation of Southeast Asian Nations from China. In the investment modelanalysis, The author pointed out that foreign direct investment for materialresource form China should adopt national investment strategy. Investmentmain body should be national big enterprises. Small enterprises' investmentmodel may be machining trade investment, purchasing oversea assets or beingmanufacturer. Investment field should include agriculture, industrialinfrastructure, manufacture, high technique industry, junketing or Chinesetraditional medicine, and so on.