The Influence Of China's Direct Investment In ASEAN Countries On Our Industrial Structure

Since the reform and opening up, China have began to accelerate the pace of integration into the world economy. And as early as in the 1990s, our government had put forth the development strategy of "going out". ASEAN countries are next door to China. The two parties have maintained a good political relationship since a long time ago, with a great potential in the economy and trade cooperation. In addition, with the promoting of the China-ASEAN Free Trade Area, ASEAN countries have become a golden investment destination for Chinese companies. Industrial structure adjustment and upgrade has already become one of the most important macro-economic development issues for the whole world, and further more, the foreign direct investment plays a vital role in industrial upgrading. This article is focused on whether ASEAN countries'foreign direct investment has an effect on China's industrial structure upgrading.Firstly, the paper elaborated China's direct investment in ASEAN from the total scale perspective, country-specific perspective and industrial constitution perspective, with both qualitative analysis and quantitative analysis used. Secondly, an econometric analysis model was applied to analyze the relevance and cause-and-effect relationship between China's direct investment in ASEAN and the upgrading of China's industrial structure, and as well to show the extent of influence on the industrial structure adjustment of China. Then it analyzed the impact on industrial structure. On the basis of above analysis, some problems were exposed. Finally, some useful suggestions were made to make sure that we can upgrade China's industrial structure in a more efficient way.