The Effect Of FDI On China's Elevator Industry

In the process of China's reform and opening-up, the foreign direct investment (FDI) has entered into China's elevator industry extensively. There is not a common opinion on whether FDI and the transnational corporations would cause the monopoly to a certain degree, and affect the market structure, and efficiency of China's elevator industry. The existing research could not provide precise conclusion. Combining with revised SCP model, this thesis tries to make a concrete analysis of the effects of FDI on the structure, conduct and performance of China's elevator market. The conclusion is that FDI has caused monopoly of China's elevator industry. The transnational corporations win more than 80% of the market share in China, which severely do harm to the interests of the national elevator enterprises. In author's view, the government's policy to deal with the entry of FDI into China's elevator industry is to combine proper protection with proper FDI inflow, and to prevent monopolization. The national elevator enterprises should develop our national brand and improve their technical creativity and competitive power, so as to compete with the transnational corporations and to become one of the biggest global corporations.