The Study Of Chinese Direct Investment In ASEAN Situations And Questions

In today’s increasingly integrated global economy, economic activity links between the world becomes more and more closely, providing new opportunities but also makes the increasingly fierce international competition. How to integrate with the large wave of economic globalization and enhance the economic strength and international competitiveness has become a significant problem for every country. Among the numerous of multinational companies overseas market entry mode, foreign direct investment is the most important one. The studies on FDI has always been the frontier of international economics and the focus of attention of the academic and business circles. After years of development, foreign direct investment has gradually become an important means of integration into the global economy, the total amount of foreign direct investment in China is also ranked first in the developing countries.In2002, China and ASEAN countries signed the "China-ASEAN economic cooperation framework agreement", the agreement is the legal basis of China-ASEAN Free Trade Area, and the starting point of the CAFTA construction. The signing of the agreement not only enhanced the economic cooperation between the two sides, but also laid a good foundation of Chinese ASEAN Free Trade Area. In2010China-ASEAN Free Trade Area was formally established. This was a remarkable step between China ASEAN Economic Cooperation. ASEAN is the world’s largest economic alliance of developing countries which have a broad development space.On the other side ASEAN has a wealth of natural resources and abundant labor supply, And adjacent to China. Although its overall level of economic development is not high, but steady growth in recent years, the market prospect. On the other hand, China’s economy is facing declining growth rate, domestic demand is saturated and rising manufacturing costs and other challenges. Under the influence of all these factors, by conducting research on China’s foreign direct investment in ASEAN to understand the ASEAN market, and to develop appropriate investment strategies not only theoretical significance but also has more practical significance.The main contents are as follows:First, starting from the theory, major foreign direct investment theory, as the theoretical basis of this paper. Secondly, ASEAN foreign direct investment environment were introduced and analyzed from all aspects of the political, legal, economic, social and cultural, In order to have a deeper understanding of ASEAN investment environment. Third, the analysis describes the current situation of China to ASEAN to make foreign direct investment and identify at the strengths, weaknesses and deficiencies. Fourthly, combining the advantages disadvantages, opportunities and challenges of China’s foreign direct investment in ASEAN, to make a SWOT analysis. Finally I will make the summary of the characteristics and problems of China-ASEAN foreign direct investment, and gives policy recommendations.