China - ASEAN Production Capacity Cooperation From The Perspective Of Regional Value Chain Reconstruction

In recent years, East Asia rises rapidly and the proportion of East Asia in the whole world increases year by year. Chinese and ASEAN, two of the great economies in this region, cooperate with each other in good order. Up to the end of 2014,the total Investment from ASEAN in China is 91.7 billion dollars and ASEAN has been the third biggest source of foreign investmen to China. Meanwhile the stock of direct investment in ASEAN from China is 47.6 billion dollars.The role of China and ASEAN economiesof the value chain in East Asia is also undergoing changes at the meantime. In this article,I would set forth that the relative position of each economy of East Asia in the regional value chain is related to the development of the domestic industry,with the concept of value added trade.Through the analysis of characteristics and its evolution process of regional and traditional value chain within East Asia, we could find that there is a natural link between the structure of the economy and the relative position of this economy in the regional value chain. With the resistance of data from WTO&OECD and some economy analysis, I get a conclusion that China and ASEAN has totally different comperative advantages and different industries develop at different speed,and the two economies of East Asia could cooperate with less cost.