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