what were the reasons that attract the big mnc to setcup the business in china in the post cold war period
Answers
A number of high-profile foreign investors have announced office and factory closures in China, while at the same time “unfriendly” barriers to certain Western hi-tech industries, and most notably software and IT have been announced. While the media often portrays this as symptomatic of problems in China, due to a “slowing economy” and “unfriendly business practices”, my view is that these are normal occurrences in the typical life of a multinational company. I do not believe, with one or two obvious exceptions, that they represent a trend of a “bad China” or a country where foreign investors are generally and increasingly having a tough time, one or two specific sectors excluded.
In actual fact, China realized the second highest volume of Foreign Direct Investment in the world last year, according to the World Investment Report 2014, produced by the Geneva-based UN Conference on Trade and Development (UNCTAD), which stated that FDI was a rising trend that would continue. So the bigger picture doesn’t support China as being FDI unfriendly. This means that the reasons for high-profile China retractions and closures must instead be related to very specific cases or strategic decisions due to changing commercial circumstances.
THE MNC in China are mostly related to Electrics
China has abundance of labour and also it is cheap to hire them.
China also has great transporting facilities such as dockyards airstrips and roads to export products.
China also has abundance of raw material like metals and silicon which are important in manufacturing
Close proximity also reduce cost
Govt policies are also favorable in china.