On The Strategic Adjustment Of Multinationals' Investment And China's Countermeasures

Under the promotion of the accelerating economic globalization,therelationship of economy and trade between countries becomes more andmore affinitive. In order to comply with the regulations and fulfill thecommitments of WTO,Chinese government changes the FDI policies andmeanwhile widens many open areas for foreign investments after China'sentry into WTO. China now becomes the most attractive and biggestmarket in the global world. The statistical figure shows that nearly 400Transnational Corporations(TNCs)out of world's top 500 invested inChina recently. The TNCs has adjusted the investment strategy on thebase of the need of its global strategy and investment experience andlesson in China. Therefore,under the background of China's entry into the WTO,itis theoretical and practical significance to discuss the adjustment of theinvestment strategy of the TNCs. This article sets about the adjustment ofthe investment strategy of the TNCs, and introduces the new traits ofTNCs investment which bring new opportunities and challenges to China,especially in utilizing the foreign investment. The method of theoretical analysis, history statistic and pragmaticanalysis are used in the article. It covers both the dialectic relationshipabout analyzing the investment of Transnational Corporation's historyand investigation to adjust the investment strategy of TNCs in China. Andit also considers revising the countermeasure of using the foreigninvestment of China. Four chapters comprise this thesis, and contents of each chapter areas follows: Chapter one analyzes the history of foreign investment,incentive offoreign investment,accessing mode of foreign investment of TNCsinvestment in China. In section one, it summarizes the history of foreigninvestment of TNCs in China. Under the promotion of the acceleratingeconomic globalization, the TNCs in the world play an important role inglobal economic and political development. In section two, this paperintroduces the incentive of TNCs investment in China which including: 1.the most attractive and biggest market; 2. the fast economic progress; 3.the expansion of realistic purchasing ability; 4. the improvement of aperfect investment environment, etc. In section three, accessing modeabout the TNCs investment in China also were discussed. These areowned enterprises , Sino – foreign cooperatives and investment bytechnology ,etc. Chapter two mainly discusses the background, content and reason ofthe adjustment of the investment strategy of the TNCs. In the first sectionof this paper, it analyzes the background of the adjustment of theinvestment strategy of the TNCs, and states out that the background wasthe economic globalization and China's entry into the WTO. In thesecond section, this paper adopts the case studies to investigate the newtrend of the regulating investment strategy of TNCs in China whichincluding: 1. to start a new round investment in China; 2. to channelChina into its global valuable–chain, and regards China as importantmanufacture base; 3. investment mode takes on diversified trend, etc. Inthe third section, the reasons of the adjustment of the investment strategyof the TNCs in China also are summarized from theoretical and practicalanalysis. Chapter three analyzes the influences of the adjustment of theinvestment strategy of the TNCs on China's economy which are bothadvantageous and disadvantageous, and the next chapter will deepen thestudy of the issue. Chapter four puts forward the countermeasure of the adjustment ofthe investment strategy of the TNCs in China. The paper points out thatwe should open up a path for China's economic development byperfecting macroscopic management, and regulating the relative policy,and making the best of the situation to increase the competing capacity ofthe enterprises and ultimately achieving the policies of equilibrium,which is going to be brought about. Moreover, under the new situation,Facing with the adjustment of the investment strategy of the TNCs, thelocal enterprises should make best use of the advantages and a...