Analysis Of The Potential Of China's Direct Investment In ASEAN

ASAEN and China are adjacent to mountains and rivers,and trade activities and investment cooperation are close.China has always attached great importance to its cooperation with ASAEN.As early as 2003,China as the first country outside the region participate in the Treaty of Friendship and Cooperation in Southeast Asia and established a strategic partnership with ASAEN.Since then,China's direct investment in ASAEN has grown steadily and the relationship has become closer and closer.At present,the ASEAN region is firmly ranked as the third largest destination for China's international investment choices.However,compared with the rapidly growing trade scale,the investment scale and level of both sides are relatively lagging behind.This research is based on the analysis of specific factors such as the investment environment of the region,the status quo of China's investment in ASEAN,and motivations,and establishes a stochastic frontier gravity model to study the key reasons for promoting China's investment in ASEAN.This study further analyzes China's investment potential in ASEAN by vertically comparing investment efficiency and potential trends,and horizontally comparing country differences,thereby putting forward effective suggestions for promoting ASEAN investment.From two different perspectives,dynamic and static,in terms of dynamics,the efficiency of investment in ASEAN has been continuously and steadily improved in recent years,and the investment potential has a broader development space.On the static side,China still has the phenomenon of relatively small investment scale and low overall investment efficiency in the ASEAN region,and the potential of ASEAN investment is still worthy of further exploration.On the static side,China still has the phenomenon of relatively small investment scale and low overall investment efficiency in the ASEAN region,and the potential of ASEAN investment is still worthy of further exploration.Specifically,China has great country differences in its investment potential.For example,in Singapore,Indonesia,Myanmar,Laos,and Cambodia,the investment potential has been better released and the investment efficiency is higher;the remaining few countries still have vast room for development.In addition,in the stochastic frontier function,the economic size,geographic distance,and labor cost of the host country have a significant positive impact on investment,indicating that China tends to choose counties with larger economic scale,closer geographic distance,and cheaper labor force when investing in ASEAN.In the construction of the non-efficiency function,it can be seen that political factors are a key part of China's direct investment in ASEAN.The political stability of the host country can significantly reduce investment resistance and increase investment efficiency.However,the regulatory quality and laws and regulations of a country have a negative impact on the improvement of investment efficiency.The main reason is that the investment level and stage of investment of Chinese enterprises are still in development,and there are certain defects and deficiencies in themselves,which makes it easy to tend to countries with low supervision quality and inadequate laws and regulations during the investment process.Therefore,in the future,the level of Chinese enterprises' investment in ASEAN should be further improved,and the potential for investment in ASEAN countries should be constantly tapped.