Starting in 2000, China has attracted one-fourth of the world’s foreign direct investments every year to help support its economy’s rapid growth and accelerate the development of its industries. This has created a market of vast potential for the corporations of countries such as Taiwan, Japan, and Korea. Yet it has also created a formidable enemy in China. As China continues to grow, commerce and investment relationships with its neighboring countries remain competitive yet also complementary.

1. Outlook on trade development

In 1997, China’s had 17 exports that accounted for 10% globally; in 2002, the number increased to 35.

2. Development in investments

In recent years, China has ranked first in the world for attracting capital. In the first half of the 90s, China attracted USD $194 billion yearly; after 1996, yearly foreign investments reached over USD$400 billion

Foreign capital invested has been shifting from countries in Southeast Asia to China. Between 1991 and 1996, total accumulated foreign capital in China outnumbered the ASEAN countries (Philippines, Thailand, Singapore, Indonesia, Malaysia and Vietnam) by 1.3 times. After the financial crisis, the multiple increased to 4.3