Negative Effects Caused By The Trend Towards Single Proprietorship Of Foreign Enterprises In China

This paper uses abundant facts and figures to analyze the current situation of foreigndirect investment (FDI) in China and comes to the conclusion that joint ventures arefinalizing by wholly owned companies in China. Then this paper makes it clear whythis phenomenon has happened from five perspectives. The major part of this paperuses classical theories to illustrate the negative effects to Chinese economy caused bythis trend from some points of views like threatening industrial safety, damagingdomestic brands, technology controlling, internal trade & price transfer and the loss ofstate-owned assets. The paper comes to the conclusion that the trend of singleproprietorship of foreign enterprises in China has been damaging China's economicinterests, putting real and potential threatens on China's economic safety and needspaying close attention. Finally, this paper gives special suggestions for Chinesegovernment and enterprises to take necessary and effective measures to underminethese bad effects,The last but not least, since the trend of single proprietorship of foreign enterprises isa newly emerged phenomenon in China, further development and observation areneeded to have a profound understanding towards the effects caused by the trendtowards single proprietorship in China.