A Study Of The Tendency Of Increasing Wholly Foreign-owned Enterprises In China

In recent years more and more foreign investors come to China to make a direct investment while there appears a tendency of increasing wholly foreign-owned enterprises in China, which means the number of wholly foreign-owned enterprises becomes larger than before. By analyzing specifically it from three different points of view we conclude that there are many reasons for it. By demonstrational analyses we conclude that it has positive effects such as boosting the development of economy, making progress in technology and optimizing the structure of the exports and imports in China. Meanwhile, by specifically analyses of the negative effects, we conclude that it will lead to the industry monopoly, reducing the ability of research and development and the lost of our brand in China. Based on the analyses mentioned in the article, some advice will be given to the Chinese government and enterprises.