A Study On The Localization Strategy Of Multinational Corporations In China

The paper firstly introduces that multinational companies presently in order to obtain greater profits and explore foreign markets under the background of globalization, they all take the localization strategy in each nation. Since China’s reform and opening up, gradually relaxed policy, the policy environment for multinational companies in China become better and better. China has a enormous market, deeply need of funds technology talent and management experience from all over the world to drive economic development. In addition to China’s reform and opening up and attracting foreign investment policy have a good influence, a large number of multinational companies enter into the Chinese market. Then introduces the definition, methods and theoretical basis of localization of multinational company and multinational companies through theory with reality to lay a theoretical foundation for the later research. And then introduced the course of the localization of multinational companies in China, mainly including investment course and local course, to fully understand the localization of multinational companies in China.Then dynamics analysis has been done for the localization of multinational companies in China: the internal cause of the localization of multinational companies in China is that the multinational companies pursue profit maximization, promote global operations and establish a good image; The external cause is that multinational companies covet China’s huge market but there are many differences of cultural geographical cultural, so sales is difficult to enter. In one word, China’s growing market structure change is the external cause. This article mainly analyses the problems in the localization of multinational companies in China. Divided into two aspects, on the one hand we discuss the unfavorable factors in multinational company localization in China, including non-standard changes in laws and policy, cost growth,lack of protection of intellectual property rights; On the other hand we talk about ill effects of multinational company in China in their localization process, and we also elaborate and analysis for positive impact from multinational company.Finally, we talk about the government how to regulate the behavior of the localization of multinational companies in China, the government and enterprises how to avoid the ill effects of multinational company localization, give advice about multinational companies how to play to a positive part in China.However for Chinese enterprises, to realize the opportunities and challenges in localization of multinational companies in China is important. And try to cooperate, achieve mutual benefit and win-win progress, increase technology development, learn the advanced technology,set up the ideas of talent, attract talented people at local and abroad is another important thing. For the Chinese government we talk about how to make good use of foreign capital to provide power for the economic development of our country,avoid these problems in localization of multinational economic at the same time.