What have foreign enterprises brought to China? ( 1)

Today, I watched an expert forum program on TV, and invited two people who looked like economic experts to discuss the economic focus of several media, including the dispute between Danone and Wahaha, the merger and acquisition of Xugong, and foreign banks. I've been paying more attention to these things. After working in a foreign company for several years, I also have some feelings. I don't write from the economic point of view, because I'm actually a layman about the economy, so I dare not comment, just think from my personal feelings. 1. Ways for foreign enterprises to enter China. According to some companies I know, foreign companies enter China not in the normal investment order, but in the opposite direction. The order of most foreign companies entering China is service-sales-production-research and development. In the service and sales stage, the impact on China's economy is mainly negative. It occupied the China market, but China didn't benefit. This is because what China wants most when introducing foreign companies is to bring in capital, employment and technology. Only in the stages of production, sales and R&D can it really have a positive impact on China's economy. But obviously, it is necessary to exchange the market for technology. Second, foreign companies have affected people's lives. Nowadays, in big cities, KFC, McDonald's, Carrefour and Simbach coffee have become a part of people's lives. At the same time, the entry of foreign companies into China has given many people the opportunity to enter foreign companies and get a job that is much higher than their original income. "White-collar workers in foreign companies" led to the emergence of the word "middle class" in China. Before that, there were basically only three economic strata in China: officials, bosses and wage earners. Third, foreign companies are monopolizing China's economy. In the equipment manufacturing industry, multinational companies have successively controlled and acquired China's local leading enterprises-British Burton Automobile Group acquired Dalian No.2 Motor Factory, Swedish Atlas Copco acquired Shenyang Rock Drilling Machinery Company, German Yina Company acquired Northwest Bearing, Singapore Western Electric Company acquired Dalian Motor Factory, Bosch reorganized Wuxi Eurasia Diesel Injection Co., Ltd., John Deere controlled Jiamusi Combine Harvester Factory, Siemens acquired Jinxi Chemical Machinery Turbine Machinery Branch, American Caterpillar acquired Mountain Machinery Company, and Carlyle acquired Xugong Machinery. I remember reading an article saying that in recent years, most of the five major industries in China have been monopolized by foreign companies, including the well-known so-called national brand Wahaha. It can be seen that China's economic law is still far from perfect, which provides opportunities for foreign companies to monopolize. In the era of planned economy, there is no real monopoly. It is becoming more and more market-oriented, but so far, China has not promulgated the anti-monopoly law. Fourth, most foreign companies do have advanced technology and management. Most foreign companies, especially those from Germany, Britain, the United States and Japan, do have advanced technology and management. Many technologies are monopolized. For example, looking at the technical patents of heat exchange equipment in power plants, almost all of them are monopolized by several large foreign companies. If domestic companies want to enter this field, they must find another way, otherwise it will be illegal. Among these patents, I can't see the patents of the three major domestic boiler plants, but it is gratifying that I have seen the patents of some private enterprises, which makes people see the hope of some national industries. China people have a very strong ability to imitate and innovate, which foreigners in the group have to admire. Therefore, technological leadership is not without hope. In management, it is not that there is no ability, but that there is no good environment, which can be seen from the "Yu Zhian incident". 5. Where are the profits of foreign companies? According to the statistics of the Ministry of Commerce of China, by the end of 2005, more than half of foreign-invested enterprises were at a loss. However, for a long time, foreign-invested enterprises have suffered from "long-term losses" and "more losses, more investment", which is contrary to normal business logic. What is hidden behind this "mystery"? It is a foreign-funded enterprise in name only! Anti-tax avoidance officials in State Taxation Administration of The People's Republic of China, China believe that more than two-thirds of the losses of foreign-funded enterprises are artificially created for tax avoidance. This passage is taken from an article, but I think the conclusion of this article is nonsense. This paper thinks that the reasons are: 1, China's crackdown on foreign companies' "illegal tax avoidance" is not strong enough; 2. All localities provide preferential policies and even protect foreign investment. Personally, the fundamental reason is the imperfection of China's tax law. The purpose of enterprises is to pursue profits, no exception at home and abroad. It is known to all enterprises that increasing the cost can reduce the income tax (the tax rate is about 33%). As a foreign company, it is natural to find ways to increase costs. Most practices of foreign companies are, for example, buying parts from the same foreign group when they could have bought cheap parts at home, which can increase costs and "keep the water flowing". I really can't find any relevant laws to restrict this practice. Since the law does not stipulate that it is not allowed, it naturally belongs to "legal tax avoidance." In China, where tax evasion is serious, legal tax avoidance is really not much. At this point, it may be more useful for China to reflect on himself.