Research On Warning And Corresponding Strategies For Divestment Risk Of Multinational Corporations In China

Worldwide expansion and investment of multinational enterprises have promoted international integration and rapid development of world economics. When scale of foreign direct investment is growing, more and more multinational enterprises divest form host countries. Since reform and opening up of our country, as China attached importance to utilizing overseas investment and adjusted policy of overseas investment, amount of multinational enterprises that invest in China has been increasing, but at the same time it is always accompanied by divestment of them, and result in negative impact to China in aspects of employment, economic development, industrial development and international payments balance. Domestic and international research mainly fuscous on the aspect of international direct investment, foreign scholars began to study divestment of multinational corporations in 1970s and have achieved fruitful success. Scholars of our country started to research on divestment of multinational corporations late, but still have achieved gratifying research accomplishment in factors inducing multinational corporations divest from China, negative impact on society and economics of our country, warning, as well as in strategies.This paper summarizes main theoretical research achievement on direct investment and divestment of multinational corporations in and out of China, reviewed systematically history and actuality of divestment of multinational corporations in China, and summarizes negative affects it brings to China. On the basis of theoretical research, this paper selects multinational corporations that firstly or newly invest in China as research samples and examine whether they have acts of divestment by 2008. This article classifies the factors influencing divestment of multinational corporations in China using method of factor analysis. On the basis of the analyzing result, this article selects 3 factors as independent variable, carries out logistic regression on 2 classification variable using SPSS 15.0, and gets warning model on divestment of multinational corporations in China. In the end, this article brings forward corresponding strategies for Chinese government on divestment of multinational corporations in China before, during and after the divestment affair.