Tnc Investment In China Strategy And Coping Strategies

Under the promotion of the accelerating economic globalization,the relationship of economy and trade between countries becomes more and more affinitive. In order to comply with the regulations and fulfill the commitments of WTO,Chinese government changes the FDI policies and meanwhile widens many open areas for foreign investments after China's entry into WTO. China now becomes the most attractive and biggest market in the global world. The statistical figure shows that nearly 400 Transnational Corporations(TNCs)out of world's top 500 invested in China recently. The TNCs has adjusted the investment strategy on the base of the need of its global strategy and investment experience and lesson in China.Therefore,under the background of China's entry into the WTO,it is theoretical and practical significance to discuss the adjustment of the investment strategy of the TNCs. This article sets about the adjustment of the investment strategy of the TNCs, and introduces the new traits of TNCs investment which bring new opportunities and challenges to China, especially in utilizing the foreign investment.The method of theoretical analysis, history statistic and pragmatic analysis are used in the article. It covers both the dialectic relationship about analyzing the investment of Transnational Corporation's history and investigation to adjust the investment strategy of TNCs in China. It also considers revising the countermeasure of using the foreign investment of China.Part one introduces the background of thesis, including the basic ideas to choose the topic and the methods of analysis.Part two analyzes the current situation of the TNCs. In section one, it summarizes, with statistics, the scale of the foreign investment of TNCs in China, In section two, it analyzes the structural characteristics of the foreign investment of TNCs in China, including the market access, investment sectoral and geographic arrangements and the models of investment. Part three mainly discusses the background, content and reason of the adjustment of the investment strategy of the TNCs. In the first section of this paper, it analyzes the background of the adjustment of the investment strategy of the TNCs, investment mode takes on diversified trend, etc. In the second section, the reasons of the adjustment of the investment strategy of the TNCs in China also are summarized from theoretical and practical analysis, and states out that the background was the economic globalization and China's entry into the WTO. In the third section, this paper adopts the case studies to investigate the new trend of the regulating investment strategy of TNCs in China which including: 1. to start a new round investment in China; 2. to channel China into its global valuable chain, and regards China as important manufacture base.Part four indicates the influences and the suggested strategies to the adjustment ofthe investment of TNCs in China. In the first section, it analyzes the influences of the adjustment of the investment strategy of the TNCs on China's economy which are both advantageous and disadvantageous, and the next chapter will deepen the study of the issue. In the second section, it puts forward the countermeasure of the adjustment of the investment strategy of the TNCs in China. The paper points out that we should open up a path for China's economic development by perfecting macroscopic management, and regulating the relative policy, and making the best of the situation to increase the competing capacity of the enterprises and ultimately achieving the policies of equilibrium, which is going to be brought about. Moreover, under the new situation, Facing with the adjustment of the investment strategy of the TNCs, the local enterprises should make best use of the advantages and avoid the disadvantages to occupy advantageous market in the course of learning, cooperating and competing with the TNCs.