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The Rise of China and Foreign Direct Investment from Southeast Asia

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  • Krislert Samphantharak

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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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    Keywords

    China; ASEAN; FDI; Overseas Chinese businesses;

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