CHINA AND MULTINATIONAL CORPORATIONS This resea

In recent decades the political and economic goals of the Chinese government and the commercial objectives of many MNCs have dovetailed each other. Even though serious tensions and conflicts have emerged from time to time between the MNCs in China and their local counterparts, they have not overall significantly stymied or hindered their effective collaboration. They, however, remain latent and can adversely affect that relationship in the future should conditions drastically change.

After the communist takeover of China in 1949 and until late 1978 the Chinese government largely turned its back on the world economy. Pursuant to Mao Zhe Dong's Great Leap Forward of the 1950s, emphasis was placed on central planning, the promotion of defense, steel

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China's GDP of little less than one trillion dollars made it the 6th largest economy in the world (2%) (25). It, however, still remains far behind the US GDP (11.5 percent) and Japan's which is three and a half times larger, despite a decade of stagnant growth (Evans 25). China has a very large current account surplus as of late 2003, $35.4 billion, and has managed to keep its public deficit to less than 3 percent of GDP and inflation at 2.7 percent (China at a glance Sept. 2003 2). Impact of MNCs on China Obviously many factors, domestic and international, have contributed to China's rapid growth. However, the close correlation between the rapidly rising inflows of FDI which has accompanied the expansion of the capital deployed by the MNCs in China is not coincidental. FDI flows brought into China capital in greater amounts and at lower costs than could otherwise have been anticipated for decades. According to Kogut & Macpherson, "MNCs most direct contribution is the provision of capital that is more stable than portfolio investments" (183). This large infusion of capital enabled China to establish on a crash basis world class, competitive factories in export markets. FDI inflows entail many non-monetary benefits. As Chounsh
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Some common words found in the essay are:
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Approximate Word count = 4274
Approximate Pages = 17 (250 words per page)