Analysis On China's Economic Security And Countermeasures

The great development of information and internet technology has expedited the regionality and globalization of the world economy. As a mainstay in the progress, multi-national enterprises, which are pushing the global economy ahead, are continually boosting their controls in the world economic stage while they keep enjoying the unshakeable monopoly in both the Leading Industry and the Pillar industry. Regarded as one of the most significant and active factors and the engine of the world economy, multi-national enterprises are worthy of being recognized as the pivotal part in the global economy chain. World economy integration has offered China, the biggest developing country, a hard-won opportunity to develop her economy, promote national power and narrow the gap with those developed countries. Both the Open and Reform Policy and Encourage Foreign Investment Policy have facilitated the faster development of multi-national enterprises in the region. With advanced Techniques, leading ideas, plentiful capital and scientific management, these multi-national enterprises have grown into the most important economic tie connecting the Chinese Economy with the world and become the indispensable force in the progress of China's economic development. More than 20 years' Reform and Open Policy has attracted the world wide attention to China brilliant success in economy. And meanwhile, multi-national enterprises have done great efforts all through. However, we should also be convinced of some side-effects of these multi-national enterprises' investment in China. Most of the enterprises are not focusing their attention on the short-term interest, but the long-term one which means occupying more percentage of the Chinese market and performing their global strategy. "Made in China, sale in China" is their main purpose of entering the Chinese market. Through the monopolistic advantages in the economic resources like funds and technology, multi-national enterprises will be able to eat up bigger shares of some key industries in China, or even completely monopolize them. Although this may improve our economy, to draw our country's attention to the safety of economy, it will also weaken both our capacity to control the national economy and ourcountry's influence in the world political and economic stage.Under these circumstances, my dissertation briefly analyzed multi-national enterprises' the status, function and developing trend on the subjects of international business, foreign direct investment, technology's innovation, transference and diffusion in the world economy stage. I especially focus my efforts on the multi-national enterprises' adjustment in their global strategies, operating principles, management modes, and the rise of the multi-national strategic unions. I also summarized the role multi-national enterprises are playing in the current word economy and their latest managing means and modes. The emphasis of my dissertation lies in the analyses of the influences multi-national enterprises have made to our country's safety of economy, and advancing my pertinent countermeasures and suggestions. The main influences are listed in the following fields and aspects: the national and fundamental industries with relations to the national economy and the people's livelihood like the Automobile Industry, Tele-Communication Industry, Petrochemical Industry, and Banking will inevitably be struck; through technology, market, and stock shares, Multi-national enterprises will enhance their control on our industries. Therefore, we can't achieve our goals of "Exchange technology with market shares"; besides, large amount of foreign capitals will not only influence the stability of our financial and economic systems, but also the realization of our country's developing goals of industry and the upgrade of industrialization; through hostile competitions and price inner transferences, multi-national enterprises willcause tremendous loss to our national economic interests...... According to theseside-effects, our country has taken measures in forms of many corresponding policies. My dissertation is providing my countermeasures and suggestions mainly on the fields of system criterion, policy adjustment and strategic guidance: we should expedite the legislation of "Anti-Monopoly Law", gradually cancel the preferential treatments to the multi-national enterprises, and enforce the works on anti-dumping, in order to stop and restrict their hostile competition; to reduce the loss multi-national enterprises' inner price transference made to our revenue, we should guide regulations on them; in the field of technology import and the utilization of foreign investment, we should not only learn how to get but how to give up. We should enhance thepolicy guidance, encourage establishing Research and Development Centers and investment helping our strategy of developing the west region; we should quicken the reform of state-owned enterprises, perform our Talent's Strategy, learn to master the advanced management experiences, focus on the research and development, and boost up our state -owned enterprises' competitive ability; Through The policy slopes, we should encourage cooperation with multi-national enterprises and multi-national combinations, so as to set up and cultivate our own well-known brands and multi-national enterprises; Through perfecting the market structure and the competition mechanism, training the endogenous ability of technology of enterprises, encouraging the locality of multi-national enterprises' management, strengthening the technological competitive power, we can weaken the control of technology from the multi-national enterprises; through the policy of restricting the proportion of stock right, we can protect the control power to the key industry of our country I should acknowledge that the impetus from the multi-national enterprises to our country's economic development is undoubted. I hereby analyze the Impact of these enterprises on the economic security of our country, in order to discuss how to reduce the negative effects through guidance and policy adjustment, how to maximum the straight effects of full play, and finally realize the economic growth with bumper harvests, promoting our status on the political and economic stage of the world.