Multinational Companies Accelerating the Sales Strategy Rearrangement



　　There is a new trend in the investment by multinational enterprises: to shift their businesses and technicaltransformation to establishing production bases, the core strategy is first to occupy the huge Chinese market.



　　Reviewing the short-term investment history: in 1992, most multinational companies merely set up representative offices in China and mainly engaged in trade.



　　But since 1995, they have shifted to establishing production bases, especially the share holding companies (such companies are the highest form of foreign investment, besides investment and reinvestment, their responsible also includes product agency, the training of personnel, providing information and supplying funds). Such multinationals include Omron, Hitachi, Panasonic, Sanyo, Fujitong, Toshiba, Isuzu of Japan, Siemens, Bayer, Henkel of Germany, General Electric, IBM, Motorola, and Dell Computer of America.



　　In recent years, multinational companies have accelerated their large investment in China. McDonald's alone has built 52 factories in China. ABB Group established 20 joint ventures. Volkswagen AG set up four large joint ventures and one solely-invested enterprise with a total investment of U.S.$ 2 billion. In addition, Boeing has three large joint ventures, and the key components of 3100 Boeing planes now flying worldwide were made in China. Moreover, with the relocation fever, multinational companies are intensifying their localizationstrategy of the "root in China".



　　According to employment records, foreign-funded enterprises favor local professionals. The director of human resources for Microsoft (China) Co., Ltd. says, over 500 their employees are Chinese, and most of them are masters and doctors. To our surprise, more and more senior posts are being taken by Chinese. In the ABB (China) Group, of 5000 employees, nearly ten general managers are Chinese, while foreign senior officials are very few.



　　In order to ensure that their products keep up with the changing market, multinational companies lay special emphasis on the localization of R & D and the expansion towards the intellectual service field. Some powerful companies have increased their R & D investment and established research institutes in China. A "China fever" has been started by foreign IT magnates.



　　Notes



　　multinational adj.多国的, 跨国公司的



　　accelerate v.加速, 促进



　　sale n.出售, 销路, 销售额



　　strategy n.策略



　　rearrangement n.重新整理



　　trend n.倾向, 趋势



　　multinational enterprise跨国企业



　　shift vt.转移, 改变



　　technicaltransformation技术转让



　　transformation n.转化, 改革, 转换



　　representative offices办事处



　　establish vt.建立, 设立, 确定



　　production base生产基地



　　core strategy核心战略



　　core n.果核, 中心, 核心



　　occupy vt.占领, 占据



　　share holding companies持股公司



　　product agency产品代理



　　training of personnel人员培训



　　supply funds提供资金



　　joint ventures合资企业



　　solely-invested enterprise独资企业



　　key components关键零部件



　　relocation n.再布置, 变换布置



　　fever n.狂热, 高度兴奋



　　intensify vt.加强



　　localizationstrategy本地化战略



　　employment n.雇用, 职业



　　foreign-funded enterprise外资企业



　　favor vt.照顾, 喜欢



　　professionals n.专业人员



　　director n.主任, 主管,



　　human resources人力资源



　　master n.硕士



　　doctor n.博士



　　senior posts高级职位



　　general manager总经理



　　senior officials高级官员



　　intellectual service field智力服务范围



　　research institute研发机构



　　"China fever""中国热"



　　magnate n.巨头, 富豪



　　At the end of last year, Microsoft invested U.S.$ 80 million in a China Research Institute specializing in essential research. It also declared recently that U.S.$ 50 million investment will be made in the Microsoft Asian Technology Center in Shanghai, the highest level research institute of Microsoft in China.



　　Siemens intensifies the localization of key technology. After a century of introducing track communication technology into China, vice president Mr. Burt said, "a century's experience persuaded us that a key factor securing the successful operation is the localization of key components.



　　In November 1999, Motorola (China) Electric Co., Ltd. built the "Motorola China Research Institute" in Beijing. It now has altogether eighteen R & D centers in China (including Hong Kong), 650 research personnel with a investment of RMB 1.3 billion, covering advanced semiconductor materials, micro-controller, CDMA, Will system, and chips for mobiles and software. By the year 2001, there will be 25 research centers and 1000 research personnel with a total investment of RMB 1.8 billion.



　　Northern Telecom International Ltd., IBM, Intel, Du Pont Holding Co., Ltd., P & G, Ericsson, Nokia, Panasonic and Mitsubishi have all established research centers, technological development centers and laboratories in China. AT &T even plans to open the first "Bell Lab". A French company will build "technological zones" in Beijing and Shanghai, including a chip factory and four application labs.



　　Thanks to the acceleration of componentlocalization brought about by the establishment of R & D institutes by multinational companies, costs are reduced and the competitiveness is increased.



　　Notes



　　declare vt.宣称, 宣布, 宣告



　　China Research Institute中国研究学会



　　institute n.协会；学会；学院



　　Microsoft Asian Technology Center微软亚洲技术中心



　　Siemens西门子（公司）



　　intensify vt.加强



　　localization n.地方化，本土化



　　key technology 关键技术



　　track communication technology跟踪通讯技术



　　track n.轨迹, 跟踪



　　persuade v.说服, 劝说, (使)相信, 劝某人做(不做)某



　　factor n.因素, 要素,



　　component n.成分 adj.组成的, 构成的



　　Motorola (China) Electric Co., Ltd摩托罗拉（中国）电器有限公司



　　Motorola China Research Institute摩托罗拉（中国）研究学会



　　research personnel研发人员



　　advanced semiconductor materials先进的半导体材料



　　micro-controller微型控制器



　　chip n.集成电路片



　　software n. 软件



　　Northern Telecom International Ltd北方电讯国际有限公司



　　zone n.地域, 地带, 地区



　　application labs应用实验室



　　competitiveness竞争力(性)
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