Studying On The Trade Effect Of Fdi From China To Asean Counties

Economic globalization and regional economic integration are the two main trends for the economic growth since the 20th century. Especially after entering 90 age, the process of economic globalization and the regional economic integration run quickly. With the rapid development of economic globalization and regional economic integration, there is a new surge of international direct investment which also develops quickly, international investment has become one of the main driving forces for the world economic growth, many countries are developing foreign investment and undertaking transnational operation in order to gain an good position in the future economic patterns.Nowadays, Chinese foreign trade has been influenced by the global economic crisis. Chinese foreign trade is suffering a lot, includes contraction in external demand, large-scale anti-dumping directly against China from the developed countries, the pressure of RMB appreciation and the overproduction. In this difficult situation, enlarging the direct investment can shift the excess capacity; it also can maintain and expand foreign trade scale.Under the background of continuous development about the economic globalization and regional economic integration, China also marches more quickly to get into the global economic system. In 1998, the Chinese government has raised "go global" strategy, since then China cooperates with other economic entities positively. China and Association of Southeast Asian Nations are the two important economic entities in the Asia. There is great scope and enormous potential for business cooperation between China and ASEAN. ASEAN countries have become the important direct investment destination for Chinese companies. On January 1st,2010, the CAFTA (China-ASEAN Free Trade Area) has established which brings new chances for China and ASEAN to further develop economic and trade relations.The existing problems of the mutual direct investment and bilateral trade between the China and ASEAN attract more and more Chinese scholars. This paper chooses the trade effect of the direct investment China to ASEAN as the research object. At first, this paper outlines Chinese scholars'researches on the direct investment's trade effect and analyzes the relevant theories between the foreign direct investment and the global trade effect. Then a careful analysis was made about the present situation and existing problems of the direct investment and trade China to ASEAN. From the point of motivation and types of the investment, this paper analyzes the trade effect which caused by Chinese direct investment to ASEAN. At the last part of this paper, some policy suggestions were given in order to promote the trade effect China to ASEAN.