The Study Of Multinational Corporations’ Entering For-Market Structure Of HV Switchgear Industry In China

Since1990s, multinational corporations (MNC) began to enter China on a large scale in the way of FDI. As an important industry with high-technology and huge market volume, the high voltage switchgear manufacturing was focused on by MNC all the while. In the past twenty years, the amount of joint venture increased and the method of FDI became more flexible. Now the JVs have been a key participant which can lead the whole industry to achieve higher level.In the paper, we analyzed the influence of market structure caused by MNC’s entry, and the Industry organization theory was concerned. Firstly we evaluated the change of market centralization in different period to indicate the competition degree, and found that no marked monopoly was made by MNC until now; then we studied the three key factors, scale economy, product differentiation and entry barrier, to explain how the MNC influenced the market structure with the above factors; further, we stated movements of market conduct of MNC and domestic enterprise and how these movements caused structure’s new change, it seemed there is a dynamic and bidirectional relationship between market structure and conduct.Besides the result in theory, we can also get an answer for practical issue:the entry of MNC did not suppress the development of domestic enterprise and brought no monopoly as well. On the contrary, MNC’s participation accelerated the high voltage switchgear manufacturing with market competition and technology spillover.Finally we gave the conclusions as well as several suggestions to push the industry to make a new progress.