MNCs Reconstruct Barriers To Entry And The Effects On China Market

The thesis mainly analyzed foreign direct investment enterprises how to break through and reconstruct the barriers to entry of China and the effects on China market. By right of various competitive edges, MNCs successfully break through the economic barriers to entry of China. After China acceded to WTO, non-economic barriers to entry such as government restrictions are greatly reduced, which is in favor of MNCs entering China market. In order to maintain and expend their market positions, MNCs dominating in some industries, fully manipulate their competitive edges and exercise strategies such as product proliferation, advertisement and so on to reconstruct and enhance barriers in China market. As a result, market structure is substantively affected. On the one hand, market concentration is enhanced and duality market structure is formed. On the other hand, as the market control over China market by MNCs is strengthened and barriers to entry are enhanced, MNCs adopt many monopolistic behaviors in competition. Then the trend of monopolization is intensified. In conclusion, competition policy should be established as soon as possible and foreign policy should be adjusted correspondingly. In order to protect our country's industry competitiveness, it is necessary and urgent to regulate MNCs' competitive behaviors in China market to promote competition prevent from monopoly and protect our industry security.