China's Direct Investment In The Mekong Five In The Global Production Network

Today's pattern of international division of labor is no longer just the pattern of inter-industry division of labor as so common before,but instead by more and more intra-product division of labor.East Asia is one of the most active regions in the global economy,and regional cooperation flourishes in here.Under the current trend of globalization and regionalization,China is actively investing in Cambodia,Laos,Myanmar,Thailand and Vietnam in the global production network.This paper first demonstrates the international division of labor under the background of globalization,as well as the new features of the East Asian regional production network.Next,studying the status of China and the Mekong River countries in the global production network through analyzing the global trade status and industrial development of these countries.Then,analyzing China 's investment to the five Mekong countries,including the scale change,industry choice and influencing factors by theoretical and empirical analyze.Finally,putting forward the existing problems in the direct investment of the Five Mekong countries in combination with the theory and the present situation,and the relevant policy suggestions.The conclusions of this paper are as follows:First,China plays a "world factory" role in the global production network.China's foreign trade structure is dominated by the import and export of manufactured goods,and China's manufactured goods have strong international competitiveness in world trade.Specifically,China's foreign trade products competitiveness are mainly concentrated in clothing,textiles and other low-tech products.Second,on the whole,the Mekong River's foreign trade structure is mainly finished products,but countries vary.The Mekong countries are still in the north-south division of labor in the primary product-finished product.It is marginalized in the global production network dominated by the division of the value chain of manufactured goods.It's participation in the international division of labor is still in the traditional inter-industry division of labor.Thirdly,with the transformation of labor-intensive industries in China's manufacturing industry from comparative advantage to comparative disadvantage,the transfer of labor-intensive industries to the Mekong region countries with lower labor costs has become a need for further development.Moreover,China's manufacturing industry's multi-level production technologies formed by the existing low-tech and high-tech industries are in line with the Mekong's multi-level needs in national economic development.Fourthly,through the theoretical and empirical analysis,it can be concluded that the distribution of the direct investment in the five countries of the Mekong River is too concentrated,which is susceptible to the adverse effects of the laws and regulations of the host country,the conflict of political culture and the lack of awareness of the environment.