We can understand the development of multinational companies in China from the perspective of foreign investment in China. The development of foreign capital in China can be divided into three stages. The period from 1979 to 199 1 year can be regarded as the first stage, the second stage from 1992 to 200 1 year, and the third stage from 2002.
From 1979 to the trend of the scale of foreign investment in China in 2008, it can be clearly seen that the curve of the amount of foreign investment in China in the past 30 years presents three development stages. From 1979 to 199 1, the foreign investment is very small, only $200-300 million per year. From 1992 to 200 1, the foreign investment increased greatly, reaching $45.5 billion in 1998. From 200 1 to 2008, the amount of foreign investment increased rapidly year by year. In the past 2008, China absorbed more than 90 billion US dollars of foreign investment. What needs to be explained here is that in the World Investment Report, UNCTAD regards foreign direct investment in China as the investment of multinational companies. Accordingly, this paper discusses the use of statistics and foreign investment figures when multinational companies develop in China.
The increasing investment of multinational companies in China has effectively promoted the integration of China's economy into the globalization trend. It is noteworthy that the historical stage of China's economic development in the past 30 years almost coincides with the important turning point of the third economic globalization. In the mid-1970s, economic globalization had just started, and China began to reform and open up. In the early 1990s, the trend of economic globalization really took shape, and China deepened its reform and opened wider to the outside world. At the beginning of this century, economic globalization accelerated, and China joined the WTO, fully integrating into the trend of economic globalization. At the three important turning points of the third economic globalization, China is at the forefront of the world.
In the past 30 years, China is in the process of transforming from the traditional planned economy system to the socialist market economy system with China characteristics. China's opening to foreign investment is different from other market economy countries. Specifically, other market economy countries use foreign capital to introduce economic growth factors and promote their own economic development. China's introduction of foreign capital not only promoted the growth and development of its own economy, but also promoted the reform of China's economic system and the transformation of its economic operation mechanism. The function of the former point is easy to be recognized and understood, and the function of the latter point is easy to be ignored.
When China's economic development has made great achievements and China's enterprises have grown, many people think that we can develop our own economy and it is necessary for multinational companies to share or seize China's economic benefits. Actually, this is a misunderstanding. We should correctly evaluate the positive role of open investment in promoting the emergence and development of modern industries and enterprises in China, and promoting the reform of China's economic management system and the transformation of economic operation mechanism. In this way, people can correctly understand the experience and significance of China's reform and opening up, persist in opening up investment, and promote rapid and stable economic development.
(B) Multinational companies and the development of modern enterprises in China
In the past 30 years, the development of enterprises in China has gone through three different stages, in which multinational corporations have played an active role.
In the first stage, the technology transfer of multinational corporations gave birth to modern enterprises in China. At the beginning of 1970s and the end of 1980s, after China opened its doors, China enterprises first saw the huge gap between their own technologies and products and multinational companies. China enterprises carried out a technological revolution by introducing foreign new products, new equipment and new technologies, and introduced a large number of advanced technologies and equipment from Japanese, American, European and other multinational companies. By digesting and absorbing advanced technology, a number of emerging enterprises stand out, such as Lenovo, Stone, TCL, Haier and Changhong. With advanced technology and products, they won the first place in the household appliances or IT industry, and then developed into a representative modern enterprise in China.
In the second stage, the establishment of foreign-funded enterprises promoted the development of modern enterprise system in China. The earliest enterprises established in China according to the modern enterprise system are those foreign-funded enterprises that entered China. From 65438 to 0979, China promulgated the Law on Sino-foreign Joint Ventures, which is the first enterprise law in China that conforms to the modern enterprise system. The existence of foreign-funded enterprises has actually become a model of modern enterprises. In 1990s, enterprises in China carried out large-scale construction or reform according to the modern enterprise system. With the implementation of 1994 China's first company law, a large number of private enterprises were established in accordance with the company law, and state-owned enterprises began to carry out comprehensive reforms.
In the third stage, the concept of modern corporate responsibility is promoted by strengthening corporate responsibility. In the early 1990s, under the background of economic globalization, global markets began to appear, and multinational companies began to transform into global companies. Global companies pay more attention to the overall responsibility of enterprises than multinational companies in the past, that is, they not only emphasize the responsibility of enterprises to maximize shareholder value, but also emphasize social and environmental responsibilities. Since the Global Compact was put forward in 2000, more and more multinational companies, including global companies, have been committed to raising their responsibilities to a global scale, and global strategies correspond to global responsibilities. In recent years, the government of China has interacted with enterprises and actively promoted enterprises to assume social and environmental responsibilities. Nowadays, not only a large number of state-owned enterprises, but also a large number of private enterprises incorporate social and environmental responsibilities into their business principles.
(C) Multinational companies and the development of modern industry in China
Since the reform and opening up, many industries in China have developed under the impetus of foreign investment. The role of multinational corporations goes far beyond providing funds and technology urgently needed by China's economic development. More importantly, multinational corporations have provided a powerful impetus for the establishment and development of modern industry in China, which will help to improve labor efficiency, promote modern industry, promote industrial upgrading, and improve the overall level of China's industry and its competitive strength in the international market.
First of all, the technology transfer of multinational companies has spawned a number of modern industries. From 1979 to 199 1, the investment amount of multinational companies in China at this stage is not much, mainly selling goods or transferring technology. Modern manufacturing industries in China, such as automobiles, household appliances, communication equipment, beverages, construction machinery, etc. , are produced and developed by introducing technology from multinational companies.
Second, the direct investment of multinational corporations has promoted the development of modern industry. After 1992, the investment of multinational companies in China has made rapid progress, and the investment mode has changed from mainly technology transfer in the past to directly establishing manufacturing and assembly enterprises in China. Many private enterprises have entered the modern manufacturing industry just established and formed in the 1980s. The entry of a large number of foreign-funded enterprises and the rise of many private enterprises have brought considerable pressure to state-owned enterprises, increased the intensity of market competition and promoted the reform and growth of state-owned enterprises. Through the mutual competition and promotion of various ownership economies, China's modern industry has grown rapidly, and China has grown into a major manufacturing base in the world. Before and after joining the WTO, many industries in China have developed into the largest industrial parts in the world, including steel, household appliances, communication equipment and other industries.
Thirdly, the merger and acquisition of multinational corporations has promoted the adjustment of industrial structure in China. Since China joined the WTO, one of the main characteristics of multinational companies' development in China is that M&A investment has gradually become an important way for them to invest. The merger and acquisition of multinational corporations can promote the development of various industries in China, promote the transformation and reorganization of China's industries, and enhance the competitiveness of China's industries in the international market. Unfortunately, many people have doubts about multinational companies' M&A activities in China. Questioning the enterprise's "Chinese surname is foreign" and excluding foreign-funded enterprises. In recent years, some enterprises and some departments have resisted foreign mergers and acquisitions. This practice not only delayed the development of domestic industries through mergers and acquisitions, but also made a group of enterprises miss the opportunity to learn cross-border mergers and acquisitions nearby.
In addition, it is worth pointing out that the three major impacts of multinational companies' business development in China on China's modern industrial development occurred in three important stages of China's introduction of foreign capital. This is not an accidental crossing of time periods, but the development of China's modern industry under the increasingly globalized world economic framework, which is more closely integrated with the global business activities of multinational companies. (D) Transnational Corporations and the Peaceful Development Road of China
From the historical experience, the rise of a country, relying only on its own resources is not enough to support its development, almost without exception, it needs to absorb international resources. /kloc-the rise of Britain and Germany in the 0/9th century, and the rise of America and Japan in the 20th century. When these countries rise, they often plunder other countries' resources by means of violence or unfair trade.
Nowadays, under the framework of the globalization of the world economy, the development and rise of China need not only access to production factors such as capital and technology, but also access to natural resources such as energy and minerals, as well as a vast global market. However, unlike the rising western powers in history, China will not acquire these resources by violent means such as war, nor by economic means such as unfair trade. China cooperates with other countries in the world through peaceful development and fair trade, and attracts and integrates international resources through market competition.