Research On The Status And Countermeasures Of The Multinational Corporations’ Investment In China

Foreign investment plays an important role in promoting the economic development of a country or region. So, since the beginning of the opening up policy, China has been very active in attracting foreign investment. At the same time, due to huge market demand, and rich labor resource, and a series of preferential policies of China, many multinational corporations have come to invest in China. Although, the heavy investment of multinational corporations makes our economy grow by leaps and bounds because of, it also causes many serious social problems, such as brain drain, industry monopolies, and environmental pollution. So, during the critical period of our country’s economic transition and adjustment, how to use foreign investment scientifically and reasonably is one of the important task in our country’s economic development.Because of this background, through theoretical research and cases study, this article has a further, systemic and comprehensive studies on the situation and problem of the multinational corporations’ investment in China, and puts forward corresponding settlement measures. Firstly, according to the theory of multinational corporations’investment, this paper analyzes the current situation of multinational companies’ investment in our country, including motivation, characteristics, new trend and the positive effect on our economy. Secondly, I deeply analysis the problem of multinational companies’investment in our country, including the structure imbalance, the assets loss, the bad effect of technology transfer, and environmental problem. And through investigating Toyota Company, we analyzed the existing problems and related measures and the effect of the measures. At the same time, on the basis of the above analysis, this paper puts forward that our country should take measures. Finally, I summarize the summary of this paper, and prospects.The result shows that we must be reasonable to guide our orientation in foreign investment, and optimize the industrial structure, and adjust regional economic structure, and maintain and increase our assets, and improve the technology content from multinational companies, and draw up and improve the environmental laws and regulations, and update the whole nation’s sense of environmental protecting. Only in this way, our country can be in a strong position during the investment of multinational corporations in China.