The Negative Effects On China’s Industrial Security And Coping Mechanisms Of Sole Proprietorship Tendency Of FDI In China

Sole proprietorship is the new change of multinational investment in China in the new period. And the sole proprietorship trend of the multinational companies’ investment in China will sustain over a period of time in the future. Foreign Direct Investment Sole tendency, especially the multinational companies Sole, mainly reflected in two aspects: First, It’s increasing that the number of new Greenfield investments wholly foreign-owned enterprises. Foreign direct investment is mainly based on cooperative operation way to enter the Chinese market before the reform and opening up; between after the reform and opening up and prior to China’s accession to the WTO, foreign joint ventures accounted for the dominance of foreign direct investment; after China’s accession to the WTO, foreign direct investment gradually transformed into mainly sole proprietorship. Second, multinational companies through the acquisition of the equity of the Chinese in the Sino-foreign joint ventures achieve the Sole Proprietorship. In particular, some adjustment of the strategic layout of large multinational companies investing in China, its sole proprietorship tendency is increasingly obvious. For example: in2004, the famous transnational giants in daily chemical Procter&Gamble’s acquisition of the shareholding of the Chinese side of the original joint venture (Hutchison Whampoa (China) Co., Ltd.),;in2013Pepsi-Cola’s acquisition of the equity of the original Chinese side of the joint venture (Shen Shenbao).Sole proprietorship tendency of multinational investment in China has a significant impact on China’s industrial structure, industrial layout, industrial competitiveness, our industry’s future development and industrial policy formulation. This paper’s research on multinational investment in China Sole can be summarized as the following three aspects:first, make a brief analysis of the development status on sole proprietorship tendency of multinational investment in China. from the view of the region, industry and businesses. And on this basis of the new changes of multinational investment in China I take an analysis of the negative effects of these changes on China’s industrial structure, industrial layout, and industrial competitiveness. Second, build a multinational companies investing in China Sole industrial safety evaluation model based on BP neural network for the use of analysis of the impact of China’s industrial safety. Empirical analysis suggests that by building improved BP neural network model’ Investing Solely industrial development since China’s accession to the WTO in2000, as transnational corporations industrial security situation continued to deteriorate, and the threat of state in2005, followed by the impact of the financial crisis in2005-industrial security situation eased in2010, re-achieve the threat of state industrial safety status in2011after the impact of the financial crisis subsided. Third, build coping mechanism for the negative effects of China’s industrial safety of sole multinational investment in China. Coping mechanisms are expressed as follows:(1) the government level: improve foreign control laws and regulations, to form a complete management of foreign legal systems; adjust our foreign policy based on the industrial safety industry level goal setting to establish the characteristics and the development of different sectors of the industry strategy formation mechanism (2):management mechanisms of intra-industry trade associations, industry internal mutual cooperation and development of innovative mechanisms (3) the enterprise level: own brand formation mechanism; talent development, utilization and protection mechanisms.