Research On State Governance On Investment Of MNCs In China

Under the socialist market economy regime, the state governance on corporations directly affects the smooth economic development and political stability. After the Second World War, multinational corporations (MNCs) rapidly developed as the driving force for global economic growth. The expansion of MNC businesses across the border not only brings new sources for economic growth, but also challenges the sovereignty and economic security of the country in which the MNCs reside due to the latter's goal of maximizing self- interest. As the key makers and executors of public policy, governments around the world generally place great emphasis on the guidance and control of MNCs'activities. Since the introduction and implementation of the Reform and Opening-up Policy, both the political and economic situations in China have been greatly improved. MNCs have greatly expanded after the experimental early stages, and this has been a double-edged sword to China's development. Throughout the state governance of MNCs in China, there are the positive aspects of accelerating MNCs development by vigorously transforming the government functions; however, there are also apparent issues on inappropriate state governance which prompt deep consideration.Now that China has entered the Post-Transition Period which propels China's economic development even more substantially, the Chinese government should adopt relevant political and economic governance policies tailored to the specific circumstances in China, maximize the interests of both the domestic and foreign parties, and cure the defects in state governance of the MNCs in China. These measures should be based on the governance experiences of the developed and developing countries and consider the interests of both the domestic and foreign parties. On one hand, regarding the political governance, the measures include accelerating the administrative management reform of the relevant government authorities, laying out an emergency precaution scheme on MNEs'political activities, and guarding against the penetration of the Western ideology. On the other hand, regarding the economic governance, the measures include enhancing regulations on multinational monopolies, protecting the national industries and assisting their development, and establish an intellectual property rights protection mechanism. In this way, we encourage MNCs'healthy development in China within the Chinese legal system, and boost the Chinese economic prosperity.