The picture shows Korean enterprise workers
Factory Recently came the news from South Korea, South Korea's 4 giants will increase investment in the Chinese market, Samsung and other enterprises in China's investment will increase significantly, hundreds of billions of yuan of investment orders will be finalized, causing widespread concern, for which Some Indian experts said that India can only envy, although India has made a lot of efforts to try to catch up with or even surpass China, but the countries of the world still choose China with practical actions, multinational companies, also known as multinational companies, international companies, is the product of the high development of monopoly capitalism.
The picture shows the Factory invested by South Korea in China
Although for a variety of reasons, there are often differences between South Korea and China, but the economic cooperation between the two countries has never been interrupted because of differences, even in recent years, the United States has increased pressure on China, requiring South Korea to stand in line with The context of China, South Korea and China's economic ties have not been weakened, this time the two sides reached a new round of cooperation agreement, led by Samsung, the four major domestic consortiums in South Korea will further increase investment in China, investment areas including electric vehicles, electronic equipment and other industries. The total investment is as high as hundreds of billions of won, about a billion yuan, and South Korean companies will also cooperate with many local cities in China to invest in cooperation projects such as industrial parks.
The picture shows the factory of a Korean company
South Korea in China to carry out such a large-scale investment, so that India and other countries that want to introduce foreign capital jealous and doubtful, jealous that South Korean companies have also cooperated with India before, but this time after many inspections, South Korean companies finally set the goal of cooperation for China, the doubt is that the market share of Korean enterprise products in China is actually declining year by year, on the surface, it is difficult to reverse the decline in further increasing investment in China at this time, why will South Korean companies carry out such a large-scale cooperation with China? The fundamental reason is simple, that is, it hopes to use China to get rid of the impact of the epidemic. Statistics show that South Korean products in the Chinese market is facing a severe situation, such as this year, About 30% of the revenue of South Korea's Samsung Electronics comes from the Chinese market, but Samsung's mobile phones, cameras and other electronic products in the Chinese market share decline year by year, resulting in a decline in the total profit of the Chinese market, south Korean cars in the Chinese market share also fell seriously, now the highest market share of Hyundai automobile is less than 3%, many experts believe that even if it is to increase investment in the Chinese market, South Korean companies will also find it difficult to reverse such a huge decline, and some experts even believe that if these funds are used to open up markets in emerging countries such as India, they may play a greater role.
The picture shows a Korean company
But investing in China is actually the only feasible choice for Korean companies, first of all, although the market share of Korean companies in the Chinese market has declined, China is still the most important source of revenue for Korean companies, no matter what, they cannot give up the Chinese market, while the global countries are stuck in the quagmire of the epidemic, China has basically got rid of the impact of the epidemic, and has also achieved the recovery of domestic industries, and even China's economy has achieved a contrarian upward trend. And South Korea is still suffering from the impact of the epidemic, the domestic economy has been seriously damaged, the interests of Korean companies have also suffered a blow, a number of factories can not start, the supply of goods is insufficient, for South Korean enterprises at this time, the only hope to get rid of the crisis is to use China, through the way of investing in china to open factories to avoid the impact of the epidemic, the use of China's anti-epidemic achievements to maintain the operation of their own products and supply chains, it is precisely because of this that South Korean companies will decide to invest more resources in China, rather than investing in India and other countries that also have great potential This advantage of China cannot be learned by other countries at all.