The Causes And Countermeasures On The Monopolization Trend Of FDI

Since the year of 1997,the exclusive investment of MNCs in China has been building up and this trend will be more and more popular. According to the theory that the enviroment decides the strategy, the strategy decides the action, the major part of this paper is to illustrate the reason of this trend from some points like the push of global strategy,the changes of investment enviroment,the need of control right ,the consideration of cost and interests.This trend have been undoubtly influent Chinese economy, it brings much negative influence not only on the safety of our country but also the enterprises. The trend of monopoly in some of our industries has been more and more obvious, some MNCs even have controlled the production and sales. And the dependence degree of trade has been rising because of the increase of foreign capital. The increase of MNCs'inner transaction brings more difficulties to the supervision. At the same time ,this trend leads to the state asset draining and weakens the effect of spillover. In view of the above,this thesis indicates specific measures to eliminate the negative effects from two aspents: firstly, the enterprises needs to consider fully the superiority and inferiority in choosing joint capital. They must learn to use WTO's rules to pretect themselves. And the strategic alliance may be a good way to strengthen the competition of our corporations. Secondly the government should build some more laws and rules in order to supply a better law enviroment. And it should adjust the current policies of FDI and strengthen the supervision of MNCs. At last, this thesis list some cases to prove the above statement.