Research On The Investment Of Multinational Company In Sichuan Province

The investment of multinational companies in Sichuan has gone through a wavy developing process, and now is experiencing another sustained development. It has a series of characteristics, such as rooting in the United States, E.U., and Japan, focusing on the region of Chengdu Plain, diversification of investment channels, and localization of R&D (Research and Development), with tendencies of expanding and being diverted into manufactures and industrial chains. These characteristics demonstrate that the strategic investment of multinational companies is closely related to the investing environment of Sichuan Province. Mostly motivated by the maximum profits, these companies lay out investment in Sichuan to realize perfecting and upgrading their global purchase chains. Their practical investing behavior has been influenced by their own adjustment of investment strategy in China on the one hand, and by the plentiful district advantages in Sichuan on the other hand, such as its market, resources, policy enviornment, and centralized economy. The case of SMIC's investment in Chengdu reveals the profit motivation and consideration of its competitive advantage, and also concerns of the factors of location, such as transportation& Logistics, policy environment, industrial supporting facilities in Sichuan when choosing the investment district and investment type.Multinational companies not only have many domestic and international advantages at present, but encounter problems of fierce competition, limitation of resources, inferior location and deficient economic structure in Sichuan as well. The influence of fortune drain, industry monopoly, limitation of technology, and environmental pollution, will somewhat negatively impact the multinational investment, as an important carrier of the advanced international productivity, multinational companies, though, have been an indispensable impetus for the sustainable economic development of Sichuan. We should follow the policy of "Channel one's actions according to circumstances; utilize the advantages and avoid the disadvantages" to encourage more multinational companies to invest in Sichuan. Besides, guided by the scientific outlook of development, the investment of multinational companies in Sichuan should be properly directed. At last, the forces of governments, enterprises and society should be gathered to efficiently restrain the negative impact of multinational investment in Sichuan.