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This EIU report outlines where China currently fits on the agenda of MNCs and shows how global companies are recalibrating their China operations in reaction to new realities.

Key Findings:

• Multinationals, large companies in particular, are clearly counting on China to deliver more.
• While MNCs are bullish, there are signs they are hedging their bets.
• Today, China is still a relatively small market for many multinationals, but this is expected to change quickly.
• China’s consumption story is driving MNCs’ strategy.
• One of the greatest challenges facing multinationals is achieving “China speed”, while maintaining a low profile.
• There are signs that multinationals’ traditional competitive advantages are beginning to erode in China.
• China’s policies aimed at encouraging local innovation are causing a great deal of ill will among multinationals.
• Multinationals need to reorganise to match the importance being placed on China.
• While planning how to win in China, multinationals are beginning to think how they can leverage their relationships there to compete elsewhere in the world.

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