The Comparative Study On The Trade Effects Of China's And Japan's OFDI To ASEAN

China has become the second largest investor in the world,entering the ranks of capital exporting countries.China's economic and trade ties with ASEAN are even more critical due to the warm response of "the Belt and Road Initiative" from all countries.Meanwhile,the cooperation between ASEAN and China has reached a new level because of the upgrading of the China-ASEAN Free Trade Area.This paper mainly studies the influence of investment on trade.Scholars have shown that there are three main kinds of relationship between investment and trade,namely complementarity,substitution and uncertainty.China and Japan,with cultural similarities and competitive relationship,are two large countries in the terms of the OFDI scale to ASEAN.So this paper compares China with Japan to give meaningful suggestions to Chinese enterprises.Based on comparative analysis of the present situation combined with empirical analysis,this paper explores the trade effects of China's and Japan's OFDI in ASEAN.According to the comparative analysis,China's investment scale in ASEAN is less than Japan's while the gap is narrowing,and China's trade scale with ASEAN is larger than Japan's with growing speed,also there are many differences in industry and country choices.The paper empirically analyzes the ten ASEAN countries to find out national differences from two aspects,namely trade flow effect and structure effect.Finally the conclusion is,on the whole,trade effects of Chinese and Japanese direct investment to ASEAN are positive,and there are big differences between China and Japan in the respect of national differences and structure differences in trade effects of investment.For China,investing in Cambodia,the Philippines,Vietnam and Indonesia can brings in stronger trade effects,and there are stronger trade effects in the product groups of Crude materials,inedible,except fuels,Manufactured goods,Machinery and transport equipment,Miscellaneous manufactured articles.According to comparative analysis of current situation and empirical analysis,this paper takes national conditions and the international environment into account and puts forward policy suggestions from the aspects of government and the enterprise,so as to promote the healthy development of China's OFDI to ASEAN and strengthen the strategic cooperation between China and ASEAN.