The Influence Of Bilateral Political Relations On China’s Direct Investment In Asean Countries

Since the 21 st century,the world economy and the political situation have become increasingly complex and changeable,and political relations have also had a greater impact on economic activities among countries.Comprehensive and in-depth analysis and understanding of the relationship between international political relations,institutional systems,and economic activities in the new situation will help the mother country to better implement the “go global” strategy and fully coordinate the reform of the “supply side”.This paper takes the bilateral political relations as the entry point and the international trade theory as the basic framework to study China’s direct investment in ASEAN countries.First,put forward model assumptions;secondly,based on the assumptions,establish a panel correction model and conduct empirical analysis,that is,explore how the political relationship between 2003 and 2015 affected China ’ s direct investment activities in ASEAN countries.The results show that the stability and improvement of political relations between China and ASEAN countries can effectively promote China ’ s direct investment in ASEAN;bilateral diplomatic activities help to offset to a certain degree the direct investment caused by factors such as economic disadvantage and institutional deficiencies.The adverse effects.At the end of the article,the study concluded that China should strengthen diplomatic activities with ASEAN countries,deepen bilateral political relations,and promote the steady growth of foreign direct investment.