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High investment return

As we have studied, FDI has improved the economical level of China; therefore we can say every country is dreaming to start its ventures in China due to this reason, as before we earn profit we can earn money from the investment itself. E.g. shares, funds and charities

Government incentive

Policies

Local government system is quite compatible to motivate and encourage business to do in China, though is not in case of internal motivation but when it comes to business, the different policies are benefitted for outsiders. E.g. free trade zones, loans, etc.

Political stability

Rules and regulations are not frequently changing with government; therefore it will be benefitted for new MNE’s to enter as they don’t have to think about any new shortcuts to enter or any other changes with its business working structure and strategies.

Part of company’s

globalization strategy

As we know that china is booming with all the aspect all over the world, that means if the country’s economy is booming, there are chances of new entrants to hit the set targets and run business successfully rather than home country. E.g. Wal-Mart

Serving as an export

platform

Being a mediator China serves all the main countries its varieties of goods, technologies and cheap labor. E.g. watches made in China and sold in USA/India with a brand name, as well as toys.

China’s advanced

technology

This point is not much used by any MNE’s as we all have idea about Chinese technological power, what sort of machinery they use for manufacturing and production. Therefore, for MNE’s they don’t have to worry about its production of goods, as it can be made with cheap labor, materials but with consistent quality.

China’s weak Indus.

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