The Research On The Type And Incentive Of Foreign-funded Enterprises' Divestment In China-Cases Comparative Analysis

With the expansion of economic globalization,the open policy of china is deepening.China,as a developing country with low manufacturing cost and high growth potential,has gradually become the best choice of foreign investment.In order to attract foreign investment,Chinese government has introduced a large number of preferential policies,which stimulating the local economy and accelerating the process of integration into the global economy.The increasing foreign investment of multinational enterprises in china has played an important role in promoting and stimulating the development of both the investment countries and local economy of China,while with the downturn and fluctuation of global economic development and the changes of various factors from investment country and host country,the foreignfunded enterprises in china feels the influences and impacts in many aspects,thus causing the phenomenon of divestment.The withdrawal of foreign investors not only has negative impact on the economic development in our country,but also harms the image of the host country of attracting foreign investment in the world.Therefore,the divestment has become an important issue to be paid attention to in the process of foreign investment in China.In accordance with the principle that cases should be both general and typical,this paper selects the investment process in China by American T company and German N company as the research objectives to show the divestment complete.By using the method of cases comparative analysis,this paper compare the commonality and particularity of the cases.On the basis of the research results of foreign and domestic scholars on the theory of divestment and the theory of product life cycle,this paper try to study the incentives of divestment from 3 aspects: the home country,the host country and the influence factor of foreign-funded enterprises themselves.From the three aspects,this paper analyzes the causes of divestment in China,and show the difference between active divestment and passive divestment from different angles,analyzes the influence relationship between divestment motivation and divestment type,and the influence relationship between the theory of product life cycle and the divestment type.At last,giving policy proposals according to the current situation of divestment in our country.