Perspective Of Chinese Multinational Corporations In China Divestment Study

China has become a main country of introducing FDI since it followed opening up policy 30 years ago. With the increasing of FDI, more and more multinational corporations (MNCs hereafter) in China have entered into the operation and maturity period and their early time contracts expire in recent years, the MNCs' divestment in china becomes frequent day by day. Fully understanding the negative impact and causes of divestment is a reliable theoretical basis, which is useful for developing the correct foreign policies to improve the investment environment. Therefore, the policies can minimize the negative influence caused by divestment, and also can show important reference on China's further introduction of FDI. This paper begins with different theories of divestment, then it analyses the phenomenon, including the divestment of data analysis, the divestment of industry characteristics, divestment of country characteristics, MNCs' divestment and reinvestment in China, and influence of MNCs' divestment in China. The paper also discusses the causes of MNCs' divestment in China, including theories factors, causes from China, causes from MNCs and other causes, and using the Cournot model to explain the factors of divestment. The paper also uses game theory to support that we should take the MNCs' divestment in China rationally by turning the preferential policies to a better investment environment. Finally, the paper gives countermeasures to deal with MNCs' divestment in China by prevention before the event, controlling in the event and remediation after the event.