Chinese companies are increasingly joining the industry of multinational corporations, how to see the development of Chinese companies today

In the twenty years since China's reform and opening up, China has become the center of the world's attention. China's vast market and numerous business opportunities have become the battleground for foreign companies, and multinational corporations have become the protagonists of the Chinese market and the victorious leaders. The products of multinational corporations have penetrated into many corners of our daily lives, from industrial manufacturing to commercial retailing, from our food, clothing, housing and transportation to culture and entertainment, an ordinary Chinese people can casually name a few multinational brands of products.

The industry's two views

How to recognize and view multinational corporations, there have always been two views in the country:

One is to emphasize that multinational corporations are a real and potential threat to China's economy, and that the full opening up of the Chinese market will certainly have a heavy impact on China's local enterprises, believing that multinational corporations are obviously aggressive and expansionary, and that they carry the ideology of neo-colonialism. They believe that multinational corporations are clearly aggressive and expansionist, with neo-colonialist ideas, and advocate restricting the pace of development of multinational corporations in China, slowing down the intensity of liberalization, ensuring long-term social and economic stability, and striving for the revival of national industries.

During this year's two sessions, a representative submitted "Strengthening Independent Innovation in Pillar Industries and Preventing Economic Colonization," pointing out that 80 percent of the sovereignty of China's three pillar industries has been controlled and dominated by foreigners, involving many fields such as the information industry, machinery manufacturing and petroleum and chemical industries, posing a great threat to China's economy, science and technology, national defense and society.

Another viewpoint is that economic globalization is an irreversible historical trend, multinational corporations, as representatives of advanced productive forces, to provide us with high-quality products and industry norms, bringing advanced technology, management ideas and corporate culture, while there is to drive the development of the local economy, providing new employment opportunities, etc., Chinese enterprises in the learning and market economy in the honed to develop and grow, firmly believe that the 'Dance with the wolf ****, only to show the hero's true colors' bravado.

Chery Automobile has made great strides in fighting back against the cries of the 'wolf'; Lenovo's acquisition of IBM's PC business;

The EU's and U.S.'s frequent attacks on a large number of China's exports; and China's economy's high growth figures for several years in a row, among other things, have made many nationals more than just complacent.

How to view and recognize the market behavior of multinational corporations in China, they are friends or foes, resource captors or benefit *** enjoyers? In fact, both points of view have some truth, and more radical, toward the left or right, sometimes really difficult,

Some kind of thought dominant will more or less affect the process of reform and the formulation of relevant government policies.

In this new context, it is particularly important to re-conceptualize and analyze multinational corporations.

Re-conceptualization of multinational corporations

1. It is an indisputable fact that multinational corporations exist and develop in the Chinese market.

China's reform and opening up has achieved fruitful results, although in the natural resources, the environment and other aspects of the cost, but the pace of reform and opening up shall not be stagnant, especially China's accession to the WTO, China has been gradually integrated into the tide of globalization of the economy, there has been no step back, forward is certainly the trend of the general trend, but the high speed of the development of the number does not explain everything, foresight and the prediction and prevention of future risks is the Chinese government and the Chinese government and the Chinese government and the ability to prevent the development of multinational companies in the Chinese market is an indisputable fact. The ability to anticipate and prevent future risks is an issue that the Chinese government and Chinese companies should think about.

Treating multinational companies' investment in China, the central government has gone from the caution of 'holding the pipa and half-hiding the face' to the popularization and recognition of 'overnight spring breeze like scissors', which has made multinational companies regard China as the most important strategic market with growth potential and increase their investment in China one after another. market with growth potential, and have increased their investment in China one after another.

Chinese enterprises can only face the reality and adopt differentiated market cutting strategies to find a certain survival space and explore new development opportunities.

2. Recognize the nature of multinational corporations.

Mr. Lu Changquan pointed out in the book "Soft War" that there are only two kinds of human communication: war and marketing. When there is a huge obstacle to human communication, war becomes a means to solve the problem; and economic activities are a kind of soft war, which is a group activity aiming at obtaining wealth, organized by enterprises, taking the market as a platform, and marketing as a means, and multinational corporations are the main force of this war.

While multinational corporations mostly appear as goodwill and partners, and cite support for China's economic construction, providing more employment opportunities and welfare protection, and bringing new consumption concepts and greater value to Chinese consumers as the reasons, the essence of their business is to obtain government support and various preferential policies for the purpose of obtaining greater benefits.

'Multinationals are not philanthropists or vampires, they just want to make a profit, that's all' - Business Week

Multinational corporations understand very well the reasoning of external righteousness and internal profit, and they have the wisdom of 'give and take'.

Coca-Cola entered China with a promise to help develop and grow local beverages while selling Coca-Cola's products, but first there was the total wipeout of local traditional branded beverages, while 'Heaven and Earth' and 'Awakening' with Chinese characteristics have been also The development of any brand should never threaten Coca-Cola's main brand.

Microsoft has allowed piracy to proliferate because they see it as a free marketplace, and not only do they want to get what they want, but they're waiting for the right time to get it all back.

Pepsi's 14 consecutive years of losses in China have not diminished its confidence in investing in the market.

Coca-Cola, Hewlett-Packard, Motorola and other multinationals are keen to support China's education sector, not only to win social praise and recognition, but also to obtain more resources for China's local talent strategy.

But the overall purpose of all these activities is to capitalize on China's huge market and the many opportunities that abound in the chaos.

3. The development trend of multinational companies in the Chinese market.

With the increase of China's reform and opening up, the development of multinational corporations in China is characterized by the following:

1) With the deregulation of the industry, more multinational corporations have increased their investment in China.

400 of the world's top 500 companies have invested in mainland China.

2) China is not only becoming a manufacturing base for many multinationals, but is also increasingly moving regional headquarters and R&D centers to China.

92% of MNCs have set up regional headquarters in China and established about 400 R&D centers, mainly in Beijing and Shanghai.

3) Sole proprietorship has become the main form of MNC investment in China.

First of all, the relaxation of restrictions on industries and the weakening of government regulation, coupled with the expiration of the contractual term of many joint ventures, profit maximization and greed have driven more and more forms of sole proprietorship by multinational corporations.

4) Accelerated localization of MNCs.

First, the localization of talents. Many top executives have changed from being parachuted in from outside in the past to being promoted internally or recruited from the mainland, but their advantages in certain aspects have also gradually diminished, such as the change of operating workers from local workers to migrant workers to save on wage costs.

Localization of procurement resources. In addition to tapping into effective local supply resources, many corresponding supporting foreign companies and R&D centers have also settled in China, forming an effective and shorter supply chain line.

Localization of corporate culture. Some multinational companies, after many years of exposure in China, coupled with an increase in the localization of management personnel, some of the original Western corporate culture has gradually been replaced by local culture, with fewer rational things and more emotional things.

'Think globally, operate locally' has become the strategic goal of many multinationals in China, with the actual intention of integrating into Chinese culture to a greater extent, and being recognized by the government and accepted by consumers.

In the face of the multinationals' surging and pugnacious, Chinese local enterprises should review the situation and respond calmly, and give full play to their regional advantages to improve flexibility and reaction speed, and enhance their core competitiveness, and many domestic enterprises have made a good example.

Chairman Mao said: 'Imperialism is a paper tiger', but we are facing an economic war that may be more insidious and destructive, and long-term. China has to abide by the rules of the game of the market, but also from time to time when the timing of the use of political, economic and other macro-means to create better opportunities and space for the development of China's local enterprises.