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Multinational investment in China started in the late 70s of the 20th century than the newly industrialized countries 10 years later to 20 years, but developing rapidly. As of 2004, accumulated foreign direct investment 44.9 billion U.S. dollars, net foreign direct investment enterprises to domestic investors reverse investment, total net foreign investment (the stock) has reached 44.8 billion U.S. dollars, the highest in the forefront of developing countries ; by the Ministry of Commerce approved or filed more than 6,000 foreign enterprises in China, these foreign companies located in more than 160 countries, production in many industries engaged in transnational business activities. But with other countries, especially developing countries than multinational corporations, multinational companies present in China is still in the preliminary stages, so there are many less obvious.

1. Size of the business strength of the weak, the low degree of international
From the scale of strength, recent data show that in 2005, 500 of the total revenue, total profit and total assets were only about 500 of the world in 2005 the same index of 8.4%, 7.0%, 6.0%, in 2005 the United States 500 companies of similar indicators for 17.2%, 12.5%, 18.2%. Degree from an international point of view, according to statistics, the world's largest 100 multinationals in overseas assets, sales, employees have been accounted for these national assets, sales, and 41% of the total number of employees, 48% and 48%. Foreign Direct Investment in China is relatively developed countries, the average investment level is low, most of the mainly small and medium projects, the development of staying power; and the relative concentration of investment in the region, less able to resist risks. According to Lu Tung (2000) empirical research, Chinese enterprises in overseas operations of the following eight areas of weakness: Sales Network, expenses, cultural differences, management personnel, lack of market information, product and service quality, local knowledge and management level . The competitiveness of Chinese enterprises is relatively low.

2. Multinational innovation in China is weak, the overall level of equipment behind
From the cross-products of production and management point of view, a world-leading high-tech products less, more general products. China's overall technological level of major sectors of industry than in developed countries 15 years to 20 years behind, focus on large enterprises and enterprise groups with international advanced level, the ratio is not high. According to statistics, China's industrial enterprises existing technical equipment, the performance of only 13% of the more advanced enterprise product development capabilities low. Fortune 500 companies R & D expenses as a percentage of sales ratio generally 5% to 10%, while medium and large enterprises in China accounted for only about 1%, resulting in enterprise product development capacity, and lack of ability to continue to develop unique products, the lack of independent intellectual property rights products and technologies.

3. Property rights are not clear, defect management system
Property rights are not clear due to internal, the lack of incentives; most enterprises still have not completed according to international practice, the establishment of modern enterprise system, management system and management model, and not well adapted to the needs of corporate international operations, resulted in mortality or Kuisun overseas investment . According to incomplete statistics, in 1997 China has set up overseas corporate earnings and only 50%, 30% fair profit and loss, a loss of 20%.

4. Transnational investment and lack of coordination between government departments
Main features: (1) government departments on overseas investment enterprises lack effective coordination and management of regional funds to invest in the business and industry to invest, the Government lacks an overall strategy, but also a lack of policy guidance, arbitrary large enterprises in overseas investment; the same time , long overseas investment management, lack of effective coordination between departments, their own way, resulting in duplication and omission of certain regulatory operations coexist. (2) approval of a rigid system, in the fleeting opportunities of international economic activities, to some extent restricts the transnational corporate investment and business activities. (3) Foreign investment in inefficient and ineffective supervision of the late. (4) to encourage foreign investment enterprises with preferential policies to support the lack of maneuverability, some preferential policies for reporting procedures are complicated and involve a number of departments implementing some preferential policies, the implementation is difficult.
5. To encourage enterprises to multinational investment in building the legal system lags behind
There are two main aspects: (1) there is provision to the competent departments, administrative regulations, the tendency to replace national laws, lack of standard companies overseas investment and business law. (2) bilateral and multilateral international investment agreements, lag, increased cross-border investment in Chinese [http://www.nikes-air-max.com] Wholesale nike air max