Study On The New Changes Of Chinese Investment Environment And The Trend Of MNCs Development Strategy In China

In the year of 2010, China's relevant foreign investment policy and regulations has undergone some changes, such as the end of preferential tax policy made domestic and foreign enterprises will pay tax in exactly the same way; utilization of foreign capital in China to rein in the policy of high pollution industry are strictly limit, and the government procurement of independent innovation products let MNCs think being ruled out. In 2011, China's entry into the the first year of the 12th "five-year plan", our country's economic structure adjustment and the upgrading of the industrial structure optimization of foreign capital, should strengthen the list on our agenda, in short, all kinds of changes in the external environment makes MNCs in China questioned on China's investment environment, and many company executives said the survival of the multinational corporations in China became more and more difficult in this context. This paper studies the new changes of investment environment in our country and produce the cause of these changes.Since the reform and open policy, the constant improvement of infrastructure as well as preferential policies and regulations of our country have attracted a lot of foreign investment. In the 1990s, the world's major MNCs began invest in China, which also have made undeniable contribution for China's rapid economic development, such as brought methods of management, advanced technology, innovative idea, and promote the reform of economic system, etc. MNCs in China has become an integral part of China's national economy construction, and promote the sustainable development of China's society and economy. But the development of MNCs in China also can't avoid some negative influence, for example, extrusion existence, causing environmental pollution. Therefore, the objective and accurate analysis and prediction of MNVs in China facing the investment environment changes how to adjust its new strategy development trend has the important practical significance.This paper firstly introduce the present foreign investment environment changes and the reason of its changes from the perspective of the foreign capital from policy laws and regulations, the new market environment changes, social environment of the new changes and relevant international environmental factors. Then, the article analyzes the the influence of investment environment changes on MNCs in China, there are challenges but also opportunities. Possible challenges may be:the introduction of foreign capital in China policy pays more attention to the foreign investment structure and quality; China local enterprise, make the constant development of MNCs in China face more intense competition environment; in the social environment, energy conservation and emission reduction is imperative, and MNCs in China have also been stricted in environmental constraints; the rise of our country's labor costs also increases the cost of MNCs'business in China; In addition, the Chinese government put importance on corporate social responsibility and the public to strengthen supervision of public both make MNCs in China do as outstanding enterprise citizen. Opportunity lies in that our country has the huge potential market and expanding domestic demand will add a lot of investment chances; the low carbon economy development for multinational corporations in China provide vast development space. Finally, this paper analyzes facing the new changes in the investment environment, multinational corporations in China will take what kind of strategy to grasp the opportunities and meet the challenges. MNCs in China will develop toward the following strategies:low carbon strategy, level up the status of the Chinese market, invest to the west and middle of China, invest in high value-added industries, localization strategy, willing to undertake the social responsibility of the enterprise, etc.The innovation of this paper is that from aspects of policies and regulations, market environment, social environment, and international factors, research our country's new changes in investment environment and the reasons. Then based on this, analyzes multinational corporations'strategic trends in China in the future.