Chapter 35 Major trend of marketing archives: the center of gravity of international multinational companies shifts to China

The United Nations Trade and Development Organization's "World Investment Report 2001" pointed out that although global foreign direct investment will decrease that year, China is an exception.At present, 400 of the world's largest 500 multinational companies have invested in more than 2,000 projects in China, and more than half of the top 500 large companies in the United States have invested in China. It is an irreversible trend that international multinational corporations shift their center of gravity to China.Chinese enterprises should undoubtedly be willing to accept this reality and learn to deal with multinational companies.

·Since 1993, the scale of China's use of foreign capital has ranked second in the world for six consecutive years, second only to the United States. ·By October 2001, China had approved a total of 385,000 foreign-invested enterprises, and the actual use of foreign capital was 385.9 billion US dollars. · 19 of the 20 largest industrial companies in the United States, 19 of the 20 largest industrial companies in Japan, and 9 of the 10 largest industrial companies in Germany have invested in China. ·The Chinese cities with the most investment by the top 500 multinational companies are: 256 in Shanghai, 64 in Shenzhen, 58 in Guangzhou, 53 in Beijing, 31 in Qingdao, and 24 in Xiamen.Guangdong actually utilizes the most foreign capital, followed by Jiangsu.

·After the mid-1990s, multinational corporations set up investment holding companies in China one after another, unified and coordinated management of their investment enterprises in China, and finally realized the systematization of investment management. ·A survey conducted by the American "Fortune" magazine shows that 92% of multinational companies will consider setting up regional headquarters in China within a few years, 30% of multinational companies said that Shanghai will be their first choice, Beijing and Shenzhen are 15% and 11% respectively %. ·Multinational companies have set up more than 100 R&D centers in China.

Over the past 20 years, multinational corporations have successively entered China to compete in certain industries, and the competition in these fields has in fact become an international competition—— Telecommunications equipment: Alcatel, Ericsson, NEC, Siemens, Fujitsu, Nortel, LUCENT, Philips... White goods: Hitachi, Panasonic, Mitsubishi, Sharp, Sony, LG, Samsung, Electrolux, Siemens, Whirlpool... Elevator manufacturing: OTIS, TYSSEN, Mitsubishi, Hitachi, LG, Hyundai, Schindler... Black goods: Panasonic, Hitachi, Sanyo, Sony, Samsung, LG, Philips... Daily chemistry: Procter & Gamble, Unilever, Henkel, Kao, Avon...

Food and Beverage: Coca-Cola, Pepsi, McDonald's, Nestle... Automobile Manufacturing: General Motors, Ford, Volkswagen, Daimes Chrysler, Toyota, Honda... Professional Services: PwC, Andersen, McKinsey, AIA… With China's formal accession to the WTO on December 11, 2001, multinational corporations accelerated their direct investment in China and entered the Chinese market in an all-round way, and began to expand from manufacturing to service and financial industries, and from joint ventures to Sole proprietorship, the trend of upgrading from dots to "group living". The "immigration" of multinational corporations to China is not only an increase in quantity, but more attention should be paid to the system and relevance of this "immigration".As Mr. Powers, the chief representative of the US-China Business Council in China, said: "They are clustering (living in groups), and they are building their own biosphere."

Multinational companies have always followed the "law of global chain": "follow your customers (follow customers)" and "global keyaccounts (global agreement partners)".Therefore, it is unavoidable that they will enter the Chinese market "one by one" in an echelon manner, become customers of each other in the business value chain, and make themselves form a business model similar to their own that looks at a line vertically and a network horizontally. environment.They know that if they have partners they are familiar with and adapt to in every link, they will be "like ducks in water".

In the past, due to policy reasons, multinational companies could not enter China with the same power, let alone in a systematic way (such as finance, insurance, etc.), and the original business chain relationship formed overseas was broken, resulting in a decline in their efficiency in China, and also Give up many business opportunities to local Chinese companies.However, after China's accession to the WTO, the chains of multinational companies will be gradually and completely connected to form the "Chinese group chain" of multinational companies. The "transnational chain" is a "value upgrade" for the Chinese market. The transparent, standardized and professional practices of multinational companies will stimulate the scientificization of various industries in China.The financial, consulting, accounting, financial and other high-quality services provided by multinational companies are not only for multinational companies, but also for Chinese enterprises.

The "group living phenomenon" will not threaten Chinese companies, but can cultivate more outstanding Chinese companies, especially in the fields of IT and services. The "transnational chain" will upgrade the entire Chinese market, and Chinese companies will also become a link in the transnational chain, and even enter the "group life".