| We make a study of the variance of investment environment in China afterentry into WTO and the strategic transformation of transnational corporationsdue to this variance in this article. According to "Report from United NationsCenter on Transnational Corporation", up to the last year of previous century,there were 53000 transnational corporations in whole world,which controlled450,000 affiliated agencies and total assets abroad reached on US$ 12.6trillions, and which predominated 40% of global production, 60% ofinternational trade, 80% of international transfers of technology and 90% ofR&D that carried out by corporations in the world. In which, transnationalcorporations from developed countries were dominant;In the quantity ofcorporation, the transnational corporations from developed countriesaccounted for 83.2%. The transnational corporations from United States,Japan, Britain, France and Germany accounted for 3/4 of top 100 transnationalcorporations in 1996. It is obvious that the transnational corporations' impact isso tremendous in global economy. As one of more direct investment countriesin China, Korean transnational corporations in China are subjected to thethreat from aforesaid countries increasingly. And after China's entry into WTOin 2001, according to the associated procedures, China has began toundertake the Obligations and enjoy the corresponding right as a membercountry of WTO since Dec.11, 2002. After China entering into WTO, thevariation in investment environment and strategic transformation ontransnational corporations would bring the far-reaching influence about theinvestment in China, and would influence the development of transnationalcorporations in China.We summarize with details of the variance in Chinese laws andregulations in this article, such as the terms and conditions about the balanceof foreign exchange, clauses on local proportion, actual requirements underthe WTO framework after entry into WTO;summarizes with details of thecorrective purposes and the corrective measures of service domain andillustrates with example, detailedly summarize the adjustment on Chinesetaxation policy, examination and approval system, intellectual propertyprotection and so on. And then, we descriptively analyze the transnationalcorporations investment's strategical variance in China by relating with boththe monopolistic advantage theory of transnational corporation andcompromise theory. Directing towards the different phase, different areas,different speciality of Korea's transnational corporations' direct investment inChina, we summary and analyze Korea's transnational corporations' directinvestment in China and the transparence of laws and regulations related withinvestment, effectively protecting intellectual property, consultation machineryfor avoiding the disputes, promoting the consistency of center and localadministration and investment expansionary action and others.Our principal outcomes as following:(1)The variance in China investment environment after entry into WTOlargely materializes in the adjustment of laws and Regulations forforeign capital, taxation policy and examination and approval system,and strengthening the intellectual property protection.(2)Owing to aforesaid variance,the transnational corporation makestrategically the following adjustments: turning exploratory investmentto strategy's investment, turning short-term profit goals to maximizingthe long-term benefit target , turning participation investment todominant investment, and turning introducing resource to resourcelocalized investment.(3)Leading motive of Korea's transnational enterprises investment in Chinais to reduce the maximize profit, to occupy Chinese market in technicaladvantage, hunt after new operations resource and chances and obtainnatural resources.(4)Under variance in investment environment and strategy's transformationof other transnational corporation after China's entry into WTO, in orderto achieve the aforesaid purpose better, the individual proprietorshipproportion and small-scale investment proportion of Korea'stransnational corporations in China are enlarging year by year ,anddirect investment in China is gradually stretch from sea coast to Southof China, and is multi-field developing.( 5 ) Whereas, some external factors, such as establishment andimplementation's polytrope of Chinese politics as well as the problemsof Korea transnational enterprises, result the losing proportion'sincreasing of Korea's investment in China.(6)In order to avoiding this state of affairs,we suggest that Koreacorporations overcome the herd mentality in the prior preparation periodto make a careful analysis of the investment strategy and prepare inadvance , increase the lateral communication between Koreacorporations to explore investment collaboration in China, andstrengthen necessary dialogue and take supportive measures betweenChina and Korea governments.Our primary coverage as following:Chapter 1. Introduction, it clarifies the research signification, researchframework and method of this article via literature overview.Chapter 2. to conduct an investigation of the investment environmentvariance in China after entry into WTO. And it goes into detail of the investmentenvironment adjustment in China under the WTO framework. And describe thetransnational corporation strategy's transformation pointing the aforesaidvariance.Chapter 3. to elaborate the fundamental state of Korea's corporationsdirect investment in China, and make a stage analysis, specific characteranalysis, investment motive analysis to proceed the qualitative analysis ofKorea transnational corporations direct investment in China before and afterentry into WTO.Chapter 4. to indicate the direct investment's problems of Korea'scorporation in China.Chapter 5. to put forward the Strategy and suggests of direct investmentof Korea's corporations in China.Our research method is qualitative investigation by surveying the literature,searching in Internet, collecting the statistics in existence as well asauthoritative documents. |
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