China's attractiveness as an investment destination has seen much of the re- gional FDI diverted from ASEAN in favor of China; China now captures about half of FDI in Asia, excluding Japan.28 This is in sharp contrast to the early 1990s, when the ASEAN countries-particularly the ASEAN-5-were attractive hosts, and annual FDI inflows to the five ASEAN economies sur- passed the total amount flowing to China (refer to Figure 4). This trend, however, quickly reversed as China, for most of the 1990s, emerged as the world's second-largest recipient of FDI, following the U.S.29 In view of China's ability to attract massive FDI compared to ASEAN countries, whose FDI inflows have remained fairly stagnant, we can expect China's export momentum to be further sustained, with WTO accession being a further cata- lyst for growth as barriers to foreign investment fall.