‘The Multinational Companies (MNCs) chose China as an alternative location for investment.’ Explain the statement.
The relocation of industry to low-wages countries stimulated world trade and capital flow. China is such a country where wages were relatively low. So, it becomes attractive destination for investment by foreign MNCs competing to capture world markets. Because of the low-cost structure of the Chinese economy, most importantly for its low-wage MNCs chose China for investment.