The Challenge for Multinational Corporations in China: Think Local, Act Global – A Summary When multinational companies (MNCs) started to get entrance into the Chinese market, they were received with open arms. This includes them enjoying government privileges other local companies were not entitled to. The Chinese consumers also preferred goods from the MNCs, and not their local companies. This however, took a twist when in the year 2000, when the per capita GDP rose in the country to $1,000. The perception of the Chinese toward the MNCs changed further when China became a member of the World Trade Organization in 2001. Their earlier privileges were withdrawn, as even the Chinese started to embrace their local companies. Conditions ever since have become tight for the MNCs, as they are now expected to strictly adhere to the Chinese standards in their businesses. Although the MNC have positively contributed to the Chinese economy, much of their challenges lie within the framework of adapting to the local Chinese expectations in their business practice. For instance, it is important to be aware of the kind of advertisements to use, which cannot be considered offensive by the local Chinese people. Most MNCs have difficulty understanding the expectations the Chinese have of them, since the Chinese are sensitive people, with respect to moral integrity and social prestige. For the MNCs to survive in China, they must “think local and act global,” meaning they should conduct their business according to the local Chinese culture and norms, while maintaining international business standards. The MNCs must follow the Chinese laws, while respecting and not breaking the rules. In addition, Chinese observers hate it when MNCs buy local companies, only to destroy them. They view this as a liquidation tactic. Using China as a lab by MNC is highly detested. More technology is