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China Briefings

Reports on China issued by Samsung Economic Research Institute

A New Era for Multinationals

A New Era for Multinationals

Samsung Economic Research Institute Beijing Office

Mar. 2, 2007

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Nearly all of the top 500 multinational corporations (in terms of sales) have entered China since it began to install economic reforms in the late 1970s. During this time the investment pattern has changed significantly. Instead of relying on China primarily as a "world's factory," multinationals, or MNCs, have grown increasingly dependent on China for sales. While MNCs have long dreamt of tapping China's more than 1 billion consumers, individual purchasing power was not high enough. That began to change dramatically in the early 1990s, when lingering political resistance toward capitalism was shoved aside and free enterprise was unleashed completely. By the end of September 2006, 570,000 MNCs had invested a total of US$665 billion in China , according to China's Ministry of Commerce.

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