The Analysis Of The Reasons For Multinational 'Divestment In China

Since the opening up of China in 1979.TNCs have started their investment in China again. After nearly 30-year development, Especially the entry to WTO China's investment environment has seen obvious changes. On one hand some TNCs have expanded their investment. However, on the other hand divestment also begins to appear in China. So fully understanding the negative impact and causes of divestment is a reliable theoretical basis which is useful for developing the correct foreign policies to improve the investment environment. Therefore the policies can minimize the negative influence caused by divestment and also show important reference on China's further introduction of FDI.The structure of this thesis is as follows:The first part introduces the study background, the international & domestic status quo and the concepts about the multinational companies. The second part introduces the Chinese status quo, characteristics and types of TNCs divestment. The third part introduces the theories and reasons for TNCs divestment. The theory development presents the contents of the main persons in order to provide a foundation for the following study. And this paper analyses the internal and external reasons of corporate divestment. And we believe the divestment is the result of internal and external reasons together. At the last through the comparison of the Peugeot, American whirlpool, Denmark carlsberg beer we illustrate the motivation of the international divestment in China.The fourth part briefly analyzes the impacts on the host country from the aspects of economic growth, the relevant countermeasures for international divestment. Though our country doesn't have a systematic statistics on the divestment in China and we don't have much material for reference. We think that our country should pay more attention to this matter in order to introduce the FDI much better.