Study On The Impact Of Foreign Capital On China's Market Structure And Countermeasures

The quantity of foreign capital went into China increased gradually and the foreign capital flowed to industry broadly since China opened. During the industries had opened, the most important five companies had been controlled by foreign capital in every industry, and foreign capital have majority control right on twenty one industries during the chief twenty eight industries. The foreign capital had monopolized some industries, for instance, automobile, film, and carbonic acid etc, although, people had forgot it had brought great shock, but China had became the new adventure paradise. The foreign companies can bring its nations market structure into China as foreign companies have advantages, therefore, it can affect Chinese market industry. The relationship between foreign capital and market structure is a hot top in world, and our nation's literate had different viewpoint on it, and it doesn't come to a system also.During analysis, we take all of the foreign company as a whole, therefore, there are only two type of company in our nation, foreign company and china's company. This article analysis the foreign company entry impact on our company and market structure based on theory and practice. This article analyzes the foreign direct investment enter into our nation and affect on our country market structure from theoretical, and take retail industry as example, analysis foreign retail company affect our market industry after foreign company entered from demonstration. From theoretical, foreign company has capital, technology and management advantage, foreign company enter into our nation can increase the number of companies in our nation, and built technology and diversity of the product barrier in China market. The competition action of many MNCs in our nation's market can bring it's nation's market into our nation, and affect our nation's market structure. Furthermore, the different ways of foreign company come into our nation can affect our market structure. It is a game process when foreign company chose to enter into our nation. When foreign company enters into China with Cross-Border Mergers and Acquisitions, it will occupy our market quickly, and increased the degree of market concentration, squeezed out companies. While, foreign company entry into our nation with Greenfield Investment, it will increase the number of company and reduce the degree of market concentration during initial stages, but foreign company has competition advantage and may occupy our market quickly, so it will increase the degree of market concentration. Form demonstration, this article take retailing as example, foreign retail companies enter into our nation didn't increase the retailing degree of market concentration widely; while in some cities, foreign retail...