The Analysis Of Evolution Of Multinational Company's Investment Motivation In China

Since 1978,the implementation of the open-door policy,China's abundant resources,huge market,and preferential policies have attracted a large number of multinational corporations to invest in China.From 1991 to 2000,China's actual use of foreign direct investment has achieved rapid development with an average annual growth rate of 33.72%.With the development of economy,some of the advantages of attracting foreign investment in China are no longer obvious;the reasons for these advantages lacks of obvious is more,such as intensified market competition,increased labor costs,and continuous changes in foreign investment policies,etc.In theory,these factors will lead multinational corporations to weaken their investment motivation in China and reduce their investment scale.However,the reality is that China's actual use of FDI has continued to grow in recent years.As of 2017,in the context of global foreign direct investment decline of 16% year-on-year,China's actual use of foreign direct investment rose by 4.0% year-on-year.Based on the status of China's actual utilization of foreign direct investment continue to maintain growth,this article reviews relevant literature at home and abroad,combines the investment motivation related theories and the development history and practice of multinational corporations investing in China.Analyzes the investment motivation of multinational companies in China,it is mainly divided into market-oriented,efficiency-oriented,profit-oriented and strategic-oriented.In addition,this article has chosen the multinational companies to invest more in communications equipment manufacturing industries in China and use Motorola,Nokia,and iPhone to invest in China.Analyzes the reasons why China's actual use of FDI has continued to grow in recent years.The reason is that the motivation of multinational corporations to invest in China has evolved.The general evolution rule is: marketoriented?efficiency-oriented?strategic-oriented.Why does the motivation of multinational corporations invest in China evolve?At last,this paper based on the perspective of changes in the host country'sfactors,analyzes the reasons for the evolution of MNC investment motivation in China from the perspectives of market,labor,technology and institutional factors in China.This is mainly due to the continuous upgrading of China's industrial structure,gradual increase in labor costs,increased investment in scientific research,and constant changes in foreign investment policies.Through the analysis of this paper,it is generally concluded that in recent years,China's actual use of FDI has continued to grow because the motivation of multinational corporations to invest in China has evolved,and the main reason for the evolution is that China's factor advantages have changed.In international direct investment,only the investment motive is fully consistent with the factor advantage can we better achieve a win-win situation.