Comparisons Between China And Japan On The Factors Affecting FDI To Asean Under The Perspective Of SWOT Analysis

Foreign direct investment is one of the important forms of economic ties betweencountries activities. Association of Southeast Asian Nations (ASEAN) as the onlyregional integration organization in Asia, with its abundant resources, broad market, andunique role in the political, security and other issues in the Asia-Pacific region, hasattracted more and more direct investment from the surrounding Asian neighbors. Atpresent, China’s economic development is going to a new pattern and entering a newphase. Chinese enterprises began to mass "going out", ASEAN is one of importantdestinations. Japanese outward foreign direct investment(OFDI) flows and stocks in theregion has kept the first place for many years, facing to the realistic situation, the issueson what are our advantages and the external opportunities and challenges in OFDI toASEAN and how to deal with these aspects of the influence factors remain to be furtherstudied.This paper reviews China and Japan’s direct investment to ASEAN, and describeson the characteristics of the investment scale, investment location, industrial structureand the investment enterprises. Then began to analyze and compared the advantages anddisadvantages as well as opportunities and challenges in the SWOT framework. Finallyput forward the practice of strategy on Chinese direct investment to ASEAN based on theanalysis of influence of internal and external factors.Through the comparisons, this paper puts forward the strategy that China should useits advantages in seizing the favorable opportunities, strengthen close ties in economicand trade relations with ASEAN and speed up the common building of the updatedversion of CAFTA. In addition, reform the management system of foreign investment tocorrect shortcomings and cope with the challenge of external risks.