| Larger Transnational Companies of the world entered into China as soon as China carried out reform and opening policy, then changed their strategies with the developing of Chinese economic. They changed their investment and operation strategies in many ways especially after China entered into WTO and Chinese government policy market environment and investment guide changed. So, How did on earth TNC transfer their strategies? What factors influenced this process? What effect did their strategies' change produce to Chinese economic? What can our companies' development investment and transnational operation study from those transnational companies? How does China improve its environment to attract more foreign direct investment? These are what I want to research in my paper.From the process in which traditional foreign direct theory developed into the theory of competitive advantage we can see that the driving factors for TNC to invest was transfering from comparative advantage to competitive advantage. This is the conclusion drawn by Michael Porter in his book ''The Competitive Advantage of Nations", he made the conclusion by doing empirical research on TNC of ten developed countries. While the drivig factors for TNC to invest to China was transfering from comparative advantage to competitive advantage is the very general hypothesis in this paper.This paper is aiming at Chinese market, making research on the change of investment strategies of TNC in China, analyzing the reason for the change, validating the hypothesis.The change of investment strategies of TNC has a far-reaching influence on Chinese economic, this means that the all-around strategic competence age is coming. Advice were made in this paper: In the new century, our government should transfer from depending on comparative advantage to attract FDI to develop industry cluster to utilize FDI, while our companies should turn its strategy from paying attention to operation efficiency to develop competitive advantage.
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