Increased foreign direct investment (FDI) in and out of China is driving development and improving stability in the Asia-Pacific region.

Research from ANU has shown that FDI has had a largely positive economic effect on the region by creating more opportunities for production networking between China and other Asian economies. 80% of China’s outward FDI has been invested in Asia-Pacific economies, which has led to expanded and diversified markets.

The study predicts that continued growth in China will create additional markets for resource production, and that this trend will continue to yield significant benefits in the next twenty years.