A Study Of China’s Locational Choice Of FDI To Asean Countries

Taking a look at current situation of China’s FDI, the investment to ASEAN countries ranked 3rd in 2013 among the total investment to the world, which raised from 6th in 2011 and was just less than Hong Kong and EU. From that fact, we could see that the investment from China to ASEAN countries is increasing, which means China is attaching increasingly importance to the market of ASEAN countries. The growing investment would make benefit for China-ASEAN "Diamond Decade" project and contributes to build a better economy and trade relationship between China and ASEAN countries, which will also be practical for the promotion of "One Belt, One Road" construction.Currently There are some problems in China’s direct investment to asean countries, for example, The scale of invest is small, Asean countries infrastructure is poor which restrict the development of invest, Cultural differences and political instability affect investment environment.so after we can get conclude that The 10 Asean countries have different in the environment of invest, there is necessary of studying China’s location choice of FDI to Asean countries. Firstly this article analysis from the industrial structure between China and Asean from which know that China and Asean are complementary in the industrial structure.secondly To analyze the current situation of China’s direct investment to asean countries and the investment environment of 10 Asean countries. At last Empirical analysis which location factors have an impact on the investment, the result show that energy, trade, the cost and quality of labour, political instability have positive correlation with China’s location choice of FDI to Asean countries, but technology culture difference have negative correlation, infrastructure, gdp have no correlation with it.