The Distribution Of Value Chain Of China’s OFDI In ASEAN

This paperuse thedata and informationof ForeignInvested enterprises(Institutions) Lists released by the China Ministry of Commerce, in order to constitute the Value Chain as a perspective, analyzing the distribution of Chinese companies OFDI in ASEAN, and theirhost location factors through empirical research methods. The empirical results show that the Chinese enterprises had OFDI in ASEAN have tended to enter the host countries that already have the trading business with them. Furthermore,the inspection also found that there are differences between the factors Chinese companies concerned about when they had OFDI in different level of income of host countries. It is obvious when Chinese companies have invested in the high level of income countries, their decision of OFDI is technology-seeking. While in low level of income countries. While in the low-income countries Chinese companiesshowed a strong sense of political risk averse. This article also drawn the conclusionby the examining of thatprevious studies had not been involved in: The business institutes set up by Chinese enterprise in ASEAN would substitute the non-business institutes.Based on the analysis of empirical results, this paper also analysis the difference in distribution and competitive advantages of Value Chain in ASEAN between Toyota Auto and Brilliance Auto. Through analysis, it shows that the major reason of failure of Brilliance Auto in ASEAN is that they had lost the cost advantage in their products because they did not distribute their value chain based on the abundant resource of host countries in ASEAN.