An Analysis Of The Motivation Of M Ultinational Corporations' Withdra Wal In China

Since the reform and opening up to the outside world,China has become the largest manufacturing country in the world.The utilization of foreign capital is of great significance for speeding up the development of China's economy.With the influx of foreign capital,the problem of multinational companies withdrawing capital in China is becoming more and more prominent.In the early stage of reform and opening-up,the influx of foreign capital benefited from China's current import substitution strategy,attracting foreign enterprises with preferential land tax policies and cheap labor,and encouraging multinational companies to invest in China.The low-cost advantage of manpower has been one of the key factors in China's success in global competition,yet the advantage is slowly losing.With the increasing cost of land and labor,as well as the cancellation of supranational treatment for foreign investment,the phenomenon of withdrawal of foreign capital will become more and more frequent in the coming years.Therefore,it has more and more influence on the sustained growth of our national economy and the stable development of society.This paper first explains the theoretical background of transnational corporations from the perspective of international political economics and economic trade.Secondly,from the present situation of China's withdrawal in China,the number,amount,country and industry of the withdrawal will be analyzed deeply,and the future development situation is predicted on the basis of the present situation.After that,it is the analysis of the motivation of the transnational corporation in China,and it is divided into two categories:the self-level of the transnational corporation and the political and economic level of the host country.Then it tells about the impact of divestment on China,including the impact on China's industrial development,balance of payments,employment problems,sustained economic growth and local enterprises.Finally,taking Samsung Group,the largest multinational corporation in South Korea,as an example,this paper divides the factors affecting Samsung's withdrawal from China into the crisis of consumer trust caused by the quality of its products,the strategic failure of Samsung's mobile phone positioning in China,the conflict between Chinese people and Korean-invested brands caused by the fermentation of Sade incident,and the rise of domestic mobile phone brands,which lead to increasingly fierce market competition.