CHINA'S GEOSTRATEGIC POSITION - FDI FLOWS AND STOCK ANALYSIS.

2010 brings news regarding China's economic strategy. It has strengthened its trade relations with emerging economies, making significant investments, plus significant imports and exports, proving again that it is the first commercial power in the world. China, considered being "the manufacturer of the world", along with Brazil and Russia, major exporters of raw materials, and India, the country which offers the cheapest technology services, has made the world organization, named as BRIC. In 2009, China has consolidated its position as the main trading partner with Brazil, a position that enabled it in 2010 to become the largest investor in the Brazilian territory. In the last years, China has made a lot of investments not only in Asian territory, but also in Europe. China has focused its investments in strategic regions, developing its trade relations. One of the most important Chinese strategies is the monetary one, through which China is trying to grow internationally Yuan's importance, reducing the dependence on the dollar by driving autonomous trade flows. It is expected that Yuan will become the main currency in Asia, main goal that will be achieved by the constitution of large reserves of Yuan on the Asian territory. Knowledge of Chinese economic policy and relations with emerging economies is essential, since 2010 shows the economic power of this nation, the largest trading power in the world, which has led the economists to study China's economic situation. We used for this study, data extracted from UNCTAD and ASEAN's reports from 2010, plus various U.S. studies on China's geostrategic position. We tried to analyze Chinese FDI flows and stock in correlation with its economic growth rate, analysis based on an econometric model. This study is based on UNCTAD ASEAN's reports and on an econometrical model which gives us the possibility to create different analysis concerning FDI flow in this country. So we defined a simple regression model, in which the dependent variable is represented by Nominal and real GDP, total and per capita, variable explicated by FDI flows, using as method the Least Squared, including 29 observations. Through this paper, we tried to illustrate the relation between the FDI flows and the economic growth rate in the past years in China, member of BRIC cooperation. China's geostrategic position is an important one, especially compared with the other BRIC countries, making energy investments in the Middle East, strategy that was adopted also by India and Russia; so Russia and China created ESPO project, Eastern Siberia - Pacific - Ocean, through which China is making huge investments in energy and Russia is trying to stand out for European markets. Through this paper, we tried to evidence China's financial and trade relations with USA, European Union and emerging economies, in the context of a severe economical crisis, named by Nouriel Roubini in his book, White Swan. [ABSTRACT FROM AUTHOR]