Chinese Multinational Development And Management

I. The Purpose and The Theoretical and Practical Signifi- cance of The Dissertation 1. The Purpose of The Dissertation With the coming of the new century, the world economy is at its turning point, as the market, mechanism, industrial structure, trade and investment pattern are all in great change. Along with the booming of multinational cor- porations and the globalization of the world economy, an integrative and free economy, highly developed in information, market and Internet, turns out to be an irreversible trend. Under the effective operation of multinational corporations and the ongoing integrating of the economy all over the world, capital, technology and management methods of the developed nations, and the cheap nature and labor resources from the developing ones cooperate with each other to the greatest extent. Pushed by the current of multinational production, deregulation, free-flowing capital and the globalization of the world markets, multinational corporations have become the main force and an effective weatherglass in the economic globalization the 1 990s. Since in- ternational investment seems to be taking the place of international trade as the economic connection between nations, the main body of the economic activities in the world is changing from nations to multinational corporations step by step. And the latter will soon become the decisive factor in formingthe economic structure of each and all the nations.Guided by Deng Speech during his trip to South China, many multinational corporations have increased their direct investments to China greatly, aiming at the huge market of the country. This is a great impact and challenge to Chinese enterprises. The competition between the international and domestic corporations is then enkindled. Together with the rivalship within the Chin- ese and international enterprises themselves intrinsically, the Chinese market and the competition in it both become more and more internationally featur- ed. Some Chinese enterprises, having not adapted themselves to the market economy yet, have already been involved into the competition. They have to face the impacts and challenges from the world-known corporations ar- ound them. In such a severe competition, the only way out for Chinese en- terprises is to go with the current of times, which means to foster their own international corporations, utilize the resources all over the world to the best, and improve their competitive power in the world. This is a crucial point es- pecially when China enters WTO this year. In 1997, Chairman Jiang pointed out in the Report for the 15th Conference of the Communist Party, that y making use of the capital and market? the large and medium-sized enterprises of China hould become large produc- tion groups, which relate themselves to deferent geographical areas, indus- tries, possession systems and nations. n 27 September, 1999, he also indicated at the Evening Feast of the Opening of the 99 Forum of Fortune in Shanghai. that ur aim is to realize the modernization in China basically inthe mid of next century, make China a wealthy, democratic and civilizedcountry, and achieve a great renaissance for Chinese nationality". Thus, llChinese enterprises must leam the advanced methods from their foreigncounterparts, strengthen themselves in the impact of economic globalization,and improve their competitive power. ll From the point of this dissertation,China should foster a batch of world-class corporations, for example, theChinese Boeing, the Chinese GM, the Chines...