Multinational Companies Adjust Strategies to China

China is Now a Key Area in the Global Strategies of Multinational Companies

Once upon a time, multinational companies were very sober-minded about investing in China. Of the large German and Japanese companies, originally only Volkswagen and the Sanyo invested in Shanghai, Changchun and Shenzhen on a significant scale. When recalling the days of studying China's investment climate in 1981, Dr. Karl Harn, a magnate in the German auto industry, said, "For most multinational companies at that time, China was still a mysterious, shy girl".

But today, changes have taken places. Multinational companies are begining to accelerate their investment in China on a large scale, and have integrated with China's economic and social activities in every sector.

According to statistic, 400 out of the "FORTUNE 500" have made a direct investment in over 2000 projects in China. In Pudong, Shanghai alone, the total value of 181 projects invested by 98 companies has reached U.S.$ 8 billion.

In recent years, the "FORTUNE 500" 500 target at China, apart from the impetus of the international situation, China' own potential is also a strong temptation.

As for the remarkable achievements of China's economy, chairman and CEO of the Boeing Company, can't help showing his admiration. "China's GDP growth rate in the past twenty-three years is 2.5 times more than in North America and Europe. If the leading increase rate keeps going, China will undoubtedly grow into a strong economic power in the next fifty years. Multinational companies must attach sufficient importance to the promising purchasing power on the Chinese market".

Notes

1.multinational companies跨国公司

multinational adj.多国的, 跨国公司的

2.adjust vt.to change so as to match or fit; cause to correspond调节，调整：改变…以相适或适应；使与…相适

3.strategy n.策略；战略

4.key n.钥匙, 关键

5.global adj.全球的, 全世界的

6.sober-minded a.头脑冷静的

7.recall vt.回忆, 回想

8.magnate n.a powerful or influential person, especially in business or industry巨头：有权威的或有影响力的人，尤指工商界或工业界

例：an oil magnate.

石油巨头

9.mysterious adj.神秘的

10.accelerate vt.to increase the speed of加速，促进：加快…的速度

11.integrate vt.to make into a whole by bringing all parts together; unify使成一体：把所有部分放在一起而成一整体；使结合

12.FORTUNE 500"财富"杂志500强

13.impetus n.推动力, 促进

14.potential n.潜能, 潜力

15.temptation n.诱惑, 诱惑物

16.remarkable adj.值得注意的, 显著的

17.achievement n.成就, 功绩

18.CEO chief executive officer首席执行官

19.Boeing Company波音（客机）公司

20.admiration n.钦佩, 赞美

21.GDP growth rate国内生产总值增长率

22.promising adj.有希望的, 有前途的

23.purchasing power购买力

After a study of China's current situation, Mr. Li Wen, president of the Warner Group, firmly believes that taking a comprehensive survey of the great changes in China in the past twenty years and the development trend of the world economy, two positive facts can be ensured. One is that China's economy has a bright future and the growth potential is huge, the other is that powerful multinational companies are seeking regions with a stable economic growth rate to gain new development opportunities. Connecting the two facts, China in the reform and opening is just such an ideal cooperate partner. In fact, China has already become one of the focuses for the multinationals in all business lines in rearranging their international economic setup in the 21st century.

Based on this thinking, many large multinational enterprises have moved their head offices to China, such as the ABB Group of Switzerland, the Robert Bosch Gmbh Co. from Germany and two famous companies from America and France.

Talking of the relocation of the ABB Group, vice president, Mr. Chen Daping said, "in order to reside in China, learn of the policies at an early date and improve our development strategy, we moved here." Maybe this is just the reason why multinational companies are fighting to relocate their head offices in China. The abundant harvest received by the early arrivals further encourages the investment by multinational companies. According to a survey, the sales volume of German Henkel Group in 1998 reached RMB 2 billion, and that of Boeing obtained a surprising RMB 19 billion. Motorola, Sony, Volkswagen, Coca-Cola and Ericsson also achieved considerable profits.

A survey by the Boston Company not long ago indicates that 90% of companies in Europe, the U.S. and Japan have set a "China first" strategy. Their race to invest and relocate of their head offices in China clearly tells us: multinational companies have focused their key strategies on China, a stable and developing China can not be separated from the world, and the world can not be independent of China, which is creating external business opportunities.

Notes

1.cooperate partner合作伙伴

2.business lines商品种类

line n.mrchandise or services of a similar or related nature系列商品，相关的服务：形式相似或相关的商品或服务

例：carries a complete line of small tools.

包揽了小工具的全部商品

3.rearrange vt.to change the arrangement of重新整理：改变对……的布置

4.setup n.机构, 组织

5.relocation n.再布置, 变换布置

6.abundant harvest大丰收

7.abundant adj.丰富的, 充裕的

8.indicate vt.显示, 预示

9.opportunity n.机会