China‘s integration into the world economy would see
China increase its investment in ASEAN as Chinese businesses
grow more savvy and outward- oriented. At the moment,
Chinese investment in the region remains modest in absolute
terms but is reported to be accelerating fast.33 Some Chinese
enterprises like the oil and chemical firm Sinopec are actively
exploring over- seas opportunities and investing in resource-rich
states like Indonesia and Malaysia. There are also other
indigenous Chinese firms like Haier and TCL that have made
forays into Southeast Asia by establishing manufacturing
facilities in Indonesia. Vietnam. and the Philippines. In any case.
as Chinese enterprises emerge more competitive as a result of
domestic restructuring. they could spearhead Chinese overseas
investment in Southeast Asia. rather than diverting foreign
investment from their ASEAN neighbors.
To conclude, trade and investment are by no means zerosum
games. and it is possible for China and ASEAN to mutually
benefit if closer economic relations among them are fostered. lf
China and ASEAN can interlock their economies through deeper
integration in the long term. both would become more
competitive as a region and would attract foreign investment
into their integrated market. This would further promote
economic growth and welfare. and more importantly, augur well
for the peace and stability of the region.