Electronic Communication MNCs’ Investment and Strategy in China – on the case studies of Motorola and Ericsson

• Main Authors: Tzu-Chi Peng, 彭姿綺
• Other Authors: 郭建中
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/15665031406507530639

碩士 === 淡江大學 === 中國大陸研究所碩士班 === 95 === Since Chin’s “open-up” policy in 1978, its drastic economic development has made China maintain the annually average GDP of 9.4% from 1979 to 2005. With the continuous “open-up” policy and the improvement of internal investing environment, China attracted FDI inflows of 72.4 billion USD in 2005. Then it became the country of the world’s top three FDI inflows, the host country that the world’s top 500 MNCs most wanted to invest, and the investing hot spot of the financial services and the high-tech industry. Given to the phenomenon and trend from the above, the study adopted two approaches of the literature analysis and the case study. With two case studies of Motorola and Ericsson, the purpose of the study was to investigate the overall investment, strategies and influences of MNCs in the electronic communication industry and to analyze how China attracted MNCs with abundant capital to invest. The study discovered that there were mainly three reasons for MNCs to invest China: 1. greatly internal demand market; 2. the improvement of investing environment; 3. the relaxation of investing restrictions. Through MNCs’ investing strategies and behaviors, the study discovered that MNCs tended to operate their enterprises with independent capital and to develop appropriate localized investing strategies in China. Besides, MNCs gradually raised China’s position of the global operating strategy and tempted to make China become the global center of R&D or the headquarters of the regional operation. The study also discovered that the capital resource and industrial development of China’s electronic communication industry attributed to MNCs’ investment. With the technical perspective, Motorola and Ericsson, devoted to study China’s 3G technical standardizations, discovered that MNCs’ R&D tendency not only influenced the production and the R&D direction of all plants within the industry but also affected the 3G standardizations of China’s electronic communication in the future. MNCs greatly contributed to China in many perspectives. For example, they boosted China’s economic and tax development, broadened the scale of import and export, upgraded the industries, innovated the techniques and so on. On the contrary, MNCs also resulted in several negative problems. For instances, they caused severe environmental pollutions, over-wasted the resources, jeopardized the living space of local enterprises, and the like. As a whole, MNCs brought China more advantages than disadvantages. Thus, the study advised China to continue opening its market, to draw up the proper and transparent investing policy, and to strengthen the environmental regulations for MNCs coming to invest.