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The Rise of China and Foreign Direct Investment from Southeast Asia

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  • Krislert Samphantharak

Abstract

This paper discusses foreign direct investment from Southeast Asia to China. With the exception of some government-linked companies, most investments from Southeast Asia have been dominated by the region’s overseas Chinese businesses. In addition to cheap labour costs, large domestic market and growing economy, China has provided business opportunities to investors from Southeast Asia thanks to their geographic proximity and ethnic connections, at least during the initial investment period. However, the network effects seem to decline soon after. As the Chinese economy becomes more globalised and more competitive, the success of foreign investment in China will increasingly depend on business competency rather than ethnic relations.

Suggested Citation

  • Krislert Samphantharak, 2011. "The Rise of China and Foreign Direct Investment from Southeast Asia," Journal of Current Southeast Asian Affairs, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 30(2), pages 65-75.
    • Handle: RePEc:gig:soaktu:v:30:y:2011:i:2:p:65-75
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    File URL: http://hup.sub.uni-hamburg.de/giga/jsaa/article/view/445/443
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    References listed on IDEAS

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    1. Li, Hongbin & Meng, Lingsheng & Wang, Qian & Zhou, Li-An, 2008. "Political connections, financing and firm performance: Evidence from Chinese private firms," Journal of Development Economics, Elsevier, vol. 87(2), pages 283-299, October.
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    Cited by:

    1. Nguyen, Hong-Kong T. & Vuong, Quan-Hoang & Ho, Tung Manh & Vuong, Thu-Trang, 2018. "The “same bed, different dreams” of Vietnam and China: how (mis)trust could make or break it," OSF Preprints khtn5, Center for Open Science.
    2. Hasniyati Hamzah, 2020. "The ‘reverse bamboo network’: Sociocultural dialectics of China’s FDI in housing (FDIH) in Iskandar Malaysia," Urban Studies, Urban Studies Journal Limited, vol. 57(8), pages 1786-1802, June.

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