| Since Chinese reform and opening up, our policies and huge market size and its potentiality have attracted a lot of foreign investment. And in recent years, the amount of foreign capital-actually-used continued to expand. Nevertheless, divestment events which greatly limited the development of China’s economy began to increase accompanied by a large of foreign investment. Divestment of foreign capital has important implications for our country.This paper researched from the aspect of divestment of multinational companies in China in recent years. Firstly, we analyzed the number of divested projects and the amount of money; and distinct the multinational divestment in four ways:withdraw or transfer to other areas, return to the home land, sell their shares or close the subsidiary corporation; and then we analyzed the characteristic of divestment from vocation, territory and the type of enterprises; after that we boldly predicted future trends of multinational divestment based on the above aspects. Secondly, we studied the reasons of multinational divestment on multinationals companies themselves, the home country’s political and economic factors, the investment environment of the host countries and the international economic environment. Thirdly, we studied that divestment could have economic and social development impacts including positive and negative impacts on employment, economic development, industrial structure and the financial sector, as well as industrial upgrading and relevant laws etc. Finally, according to Chinese specific conditions, we put forward specific proposals to deal with the divestment of multinational companies in China, divided prevention, regulation and remedy into three perspectives. The last but not least, we raised some proposals from the height of the national strategies to attract investment, aimd to establish a favorable investment environment in our country and avoid a large number of divestments. |
PDF Full Text Request