| Now, under the promotion of the accelerating economic globalization, the relationship of economy and trade between countries becomes more and more affmitive and Transnational Corporation (TNC) investment grows continuously rapidly in the world. However, just likes a double-edged sword, the economic globalization widens the gap between the rich and the poor (rich-poor polarization). Actually, TNCs are enacting such a role and exerting widespread and far-reaching impact on the world economy, which attract so many scholars and entrepreneurs in the world to research and explore. In order to comply with the regulations and fulfill the commitments of WTO, Chinese government adjusts the FDI policies and meanwhile widens many open areas for foreign investments after China's entry to WTO. China now becomes the most attractive wand biggest market in the global world. It generates more business opportunities and attracts so many investments of famous Transnational Corporation. Therefore, under the background of China's entry to the WTO, it has some theoretical and practical significance to discuss the adjusting of the investment strategy of the TNC in order to attract foreign investment and ultimately achieve the policies of equilibrium, which is going to be brought about.This article consists of both theoretical analysis and statistical history including evolution on the main theories. It covers both of the dialectic relationship about analyzing the investment of Transnational Corporation's history and investigation to regulate the investment strategy of TNC in China. And it also considers revising the strategy of FDI policy to achieve the policies of equilibrium of China. The whole article is divided into three parts:Part I (chapter 1,2)In this section, the paper analyzes the history of foreign investment, incentive of foreign investment ,ways of foreign investment etc. of TNC investment in China by the international investment theories. In Chapter One, it summarizes the development of TNC in the World. All of TNCs in the world play an important role in global economical and political development due to the economic globalization. It includes the restructuring of industrial and district, the investment strategy etc. And the key point of international investment changes from the development countries to developing countries, the merger and acquisition is the one of their diversification of investment modes. At present, nearly 400 multinational corporations out of world's top 500 invested in China. In Chapter Two, this paper induces the incentive and methods of TNC investment in China. And then analyzes the fast economic progress and the expansion of realistic purchasing ability and the improvement of a favorable investment environment etc in recent years in China which come up with the globalization strategy of TNC. The launches of the new round of changes about the foreign direct investment in China also were discussed. These are owned enterprises, Sino-foreign cooperatives and investmentby technology etc.Part II (chapter 3, 4, 5)This section mainly introduces changes of the foreign investment climate of the market in China and the opportunities and challenges of TNC investment to China after the entry into WTO. Afterwards adopts the case studies to evaluate the effect of investment and investigates the regulations and the traits of the investment strategy of TNC by the Theory of Transnational Corporation. In Chapter Three, this paper introduces the opportunities and challenges of TNC investment to China. The foreign investment environment changes with the Chinese government's revision of the FDI policy of China. These changes include: modifying the basic law of FDI that short of the WTO rules; allowing merger and acquisition of staff-owned enterprises and holding company by foreign investors; further expanding open areas for foreign investment step by step; encouraging foreign investment into high-tech industries; granting a series of preferential policies for foreign investment in western china... |
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