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What are the motivations for multinational companies to invest in China?
There are several reasons.

I. Market

(1) The position of China market is becoming more and more important. In recent years, the world economy has slowed down, the markets of developed countries are relatively mature and saturated, and the markets of many developing countries are relatively small, while China's economy has continued to grow in the past 10 years. According to the preliminary accounting of the National Bureau of Statistics,

China's economic growth rate was 8.7% in 2009. The total size of China market is constantly expanding. Naturally, it is impossible for multinational companies with the core of improving international competitiveness to ignore China, the most potential market.

2) Consumption

The international environment facing China is conducive to the development of macro-economy, and the world economy has entered a new growth cycle. Moreover, with the gradual implementation of various macro-control measures, China's economic operation is developing in the expected direction of regulation.

Second, resources.

(1) cheap labor China has a large population and abundant labor resources. Compared with other developing countries, the education level of China's labor force ranks in the forefront, while the hourly wage in the United States is about 16 US dollars, that in Mexico is about 4 US dollars, and that in China is about 0.5 US dollars. Therefore, the advantage of cheap labor is also one of the reasons that attract a large number of foreign enterprises to invest in China. Setting up a factory in China to utilize local human resources not only meets the market demand, but also saves labor input.

(2) Natural resources. In the past, the most important factor for host countries to attract foreign direct investment was abundant natural resources. China has a vast territory and abundant natural resources, which is beneficial for foreign enterprises to use advanced foreign science and technology to make use of China's resources. Thereby achieving a win-win situation.