The Trade Effects Of China's Outward FDI To ASEAN

In the background of economic globalization, international direct investment and international trade continue to grow in scale and shows a complex relationship of complementary, substitution and integration. As the nation with the world's largest trading amount, China has a rapid increase in FDI and plays a great role in international capital flows. Therefore, the research on cause, effect and trade relation of China's FDI has gradually become an academic focus. With the development of China-ASEAN free trade area (FTA), the study of Chinese investment in ASEAN and industry appears to be a more highly meaningful choice.In this article, China's direct investment and trade in industry with ASEAN are the research objects. Firstly, the paper reviewed the research on China's FDI, and then theoretically analyzed foreign direct investment in the national cause, the effects of the home country and benchmarks of industry selection. Secondly, the paper makes analysis of changes, current status and structural characteristics with the China-ASEAN import-export trade and investment, and then identifies the relationship between them in the industry. Thirdly, it makes empirical analysis of the relationship between investment and six large industry trade from 2001 to2008 between China and the main nine countries of ASEAN (Singapore, Malaysia, Thailand, the Philippines, Indonesia, Vietnam, Myanmar, Laos and Cambodia, excluding Brunei) by establishing panel data model, which finds that the six industries import and export effect of the direct investment is promotive. Finally, direction and strategy of industry selection of China's direct investment to ASEAN would be further discussed based on the benchmark of the industry selection.