Study On Divestment Phenomenon Of Multinationals In China

Divestment has emerged with the development of foreign direct investment, researches to this problem started from 1970s, as normal economic phenomenon, divestment is in accordance with the change of economic rule. The scale of foreign investment has expanded quickly since China opens to the outside world, with larger and larger scale of foreign direct investment and the integrated trend of world economics, on one hand, more and more multinationals put their fund and capital into China, on the other hand, divestment phenomenon derived from multinationals in China becomes frequent day by day, which arose the attention of theorists in divestment aspect, a part of multinationals in China have the process of investment, divestment and reinvestment.The article begins with different theories of divestment, using many analysis methods such as comparative analysis, Case Analysis and so on, the article analyses divestment phenomenon systematically based on theories and practices of this aspect. There are four parts in this article, the first explains the background and aim, second part expatiates different theories about divestment phenomenon, the third part is the core of the article, and analyses from several aspects, such as reasons, characters, formations and influences, and the fourth is the conclusion of the article.