Multinational Electronics Corporations’ Investment Strategy Adjustment In China And An Analysis Of The Factors Attracting The Strategy Adjustment

《Multinational Electronics Corporations’ Investment Strategy Adjustment in China and an Analysis of the Factors attracting the Strategy Adjustment》is a comprehensive report which focuses on the multinational electronics corporations’ developing history, recent strategy changes and an empirical analysis of the factors, the influence of strategy adjustment on electronics industry in China, the future development trend of the multinational electronics corporations in China. I made a comprehensive analysis about the China-featured policy environment, multinational electronics corporations in China compared with domestic enterprise’s competitiveness; the characteristics and role of multinational electronics corporations’ global value chain and trend; the background and contents of multinational electronics corporations’ investment strategy adjustment in China. And the paper focused on the analysis of market leading multinational electronics corporations’ investment highlight and the development planning in China market.With the speeding up of free trade economic globalization, the trend of the world economic and trade relations are more closely. In this paper, on the basis of the theory of global value chain targeted research of multinational electronics corporations to invest in China strategic adjustment. Although before also exists in the form of processing trade, product production process, but such process has been multi-nations in global value chain, which feature is to create new value in different stage.Global value chain(GVC) has been built for the electronics industry the general production form of multinational corporations. The rise of GVC caused a change in all aspects. The biggest change is that many companies in the world compete strongly as to manufacture GVC materials and components. Countries in the world support the national companies who manufacturing components of GVC, and try to introduce related companies into its own country. At the same time, developing countries with a lot of cheap and high quality of the labor force, try its best to introduce the multinational corporations as to manufacture finished goods of GVC. Apple established i-Phone factory in Shenzhen China in the end of 1990 s, and Samsung established smart phone factory in Hanoi Vietnam in 2009, which are all good examples.Since 1990 s, countries in southeast Asian region and in the world positively take into the competition coming from global division of labor functional structure.Multinational electronic corporations generally arranged knowledge intensive industry, such as research and development and design activities in the developed countries, and simple processing production function transferred to developing countries, target to the world market, dominated the reorganization of the global industrial structure. As a result of setting up global network of multinational electronic corporations, regions or countries in the world are forming the professional base with functions of R&D, skilled production, simple production, which have appeared in the new strategic base combined with a variety of functions.Global international division of labor, speed up combination between the knowledge of developed countries and manufacturing function of developing countries.However, after the global financial crisis in 2008, the global economic uncertainty factors increase, and multinational electronics companies in developed countries failed to ensure professional competitiveness in the international division of labor. In such situation,by relying on the domestic enterprises to expand overseas production, starts to worry about non-industrialized of manufacturing concerns. Developed countries adopt re-industrialization policy because the labor cost and material cost are increasing in the developing countries including China and appears the trend of reshoring, insourcing, multinational corporations according to the needs of its global strategy also continuously adjust its investment strategy.In addition, in recent years operating in China need some costs have risen sharply, the rise of Chinese domestic electronics corporations, the cancellation of the preferential policies for foreign companies, positive investment introduction policy factors of southeast Asian countries, all these factors brought many multinational electronics corporations in labor-intensive processing production line transfer to southeast Asia, re-industrialization of developed countries caused part of multinational corporations back to home, etc., the resulting in a decrease of foreign direct investment in China in recent years and the proportion of obvious downward trend.Based on the multinational electronics corporations investment in China under the background of strategic adjustment, accurately analyze its influence factors and the trend of global value chain of multinational electronics corporations; further discussion on the new features of investment in China; the opportunities and challenges of Chinese foreign investment policy; in-depth analysis of multinational electronics corporations investment strategy adjustment to Chinese electronics industry development will bring positive influence and negative influence. Lastly put forward for multinational electronics corporations to invest in China and the development suggestion and policy recommendations to relevant government departments.