Causes and Countermeasures of Multinational Companies' Disinvestment in China

摘要

This paper first reviews the recent phenomenon that multinational companies in China disinvest and then analyzes the causes of this and the negative effects of this behavior on China and finally proposes countermeasures. Disinvestment of multinational companies means foreign investors (usually referring to foreign merchants or foreign economic organizations) withdraw capital and terminate the production and operating activities entirely or partly in the host country or area. From the perspective of host country, disinvestment of multinational companies is the behavior or the activity that foreign companies remove the investment from the wholly owned enterprises or the joint venture in the host country.