Increased levels of trade and liberalization should be used to strengthen cooperation between China and the Association of Southeast Asian Nations (ASEAN), according to a report released Wednesday.

The "Annual Report on Development of Asia-Pacific (2012)" was issued by the Chinese Academy of Social Sciences. It stated that bilateral economic ties should be facilitated as the two sides are adjusting their development strategies.

According to the document, as China is undergoing economic restructuring during the country's 12th Five-Year Plan period (2011-2015), medium and small-sized companies are encouraged to explore overseas markets, which will undoubtedly boost China's investment in the ASEAN countries.

According to the "World Investment Report 2011," released in July last year by the United Nations Trade and Development Organization, the growth of China's overseas investment has far outpaced that of foreign investment in China.

China's direct overseas investment reached 68 billion U.S. dollars in 2010, ranking it fifth in the world and meaning it outstripped Japan for the first time, the report said.