The biggest impact on multinational corporations is the antitrust investigation

Abstract: Multinational companies for the first time without the feeling of superiority. A few years ago, those who worshipped the logo hung high above the skyscraper, for multinational companies to work with the white-collar gold collar with a proud breath, the foreign company's career fiction has become the spirit of the Ant tribe

For the first time, multinationals have lost their sense of superiority.

A few years ago, those who worship the logo hanging high above the skyscraper, for multinational companies to work with the white-collar gold collar with a kind of proud of the breath, the work of foreign companies in the novel has become the spirit of the Ant clan weapon. After a month or two of intensive events, multinational companies have been less bullish in China.

Antitrust investigation

The biggest impact on multinational companies is the antitrust investigation.

July 25, a number of media reports, the NDRC has established a Qualcomm monopoly of the fact that the Chinese companies are investigating Qualcomm's sales figures. Qualcomm's 5% royalty charge on 3G handsets, which in LTE-FDD and even LTE, wants to charge heading royalties, which last year totaled $24.3 billion trillion in Qualcomm chips and licensing fees, more than half of them from Chinese companies. Qualcomm's shares fell more than 10% per cent after the news of the NDRC's confirmation of a Qualcomm monopoly, and the market value evaporated by about 13.2 billion dollars. Recently, the antitrust investigation is expected to be closed by October this year, Qualcomm or to reduce the licensing costs for Chinese mobile phone companies.

The second area of technology is Microsoft. July 28, 2014, the State administration of Industry and Commerce organized Beijing, Shanghai, Guangdong, Sichuan, Fujian, Hubei, Jiangsu, Chongqing, Hebei and other 9 provinces and hundreds of industrial and commercial law enforcement personnel, Microsoft in mainland China's four operating sites, that is, Microsoft (China) Co., Ltd. and Shanghai, Guangzhou, The Chengdu Branch also conducted antitrust raids. More interesting is, August 4, the State Administration for Industry and Commerce issued a brief announcement, warn Microsoft, strict adherence to Chinese law, not in any way to interfere, obstruct the case investigation, to ensure that the case investigation of the objective and impartial.

From these tough attitude can be seen, the past multinational companies by virtue of technology and capital advantage to obtain special treatment of the prosperity no longer, the domestic enterprise's discourse right is rising.

Government procurement closes the door

If antitrust investigations only affect the right to speak, then government procurement closes the door is a real loss of revenue. Recently, according to media reports, the Central Government Procurement Center for the purchase of genuine software procurement network shows that this year's antivirus software category products procurement list, only 360, the Crown Group of Gold, Jiangmin technology, rising and Jinshan five domestic brands were selected, and previously listed Symantec and Kaspersky not in the Government procurement list. The Chinese government procurement agency has "ruled out Symantec and Kaspersky" from the list of security software providers, the People's Daily said in an English Twitter account 3rd.

Although later Kaspersky, Symantec response has not been "disabled", and this list is limited to the central agency scope. But from the Prism Gate incident, the government procurement of foreign software has been very cautious, in the long run, government procurement gradually closed the door to foreign manufacturers is a big probability event. In the recent May, the Central Government Procurement Center issued a notice that all computer products are not allowed to install the WINDOWS8 operating system, the news was also a concern.

It is noteworthy that at present in the personal market domestic anti-virus software is free, so the foreign anti-virus software share is very low also is not its center of gravity. But in the enterprise market, the foreign anti-virus software brand's market share is higher, about half, if the government department completely discards, this to the multinational manufacturer's influence is extremely.

Layoffs are constantly

The recent uproar over Microsoft's layoffs in Nokia China has once again shattered the halo of multinational companies. Nokia China Research and Development center more than 80% of people will be laid off, and the compensation conditions are not discussed, a large number of staff in the village to gather protest, which is very rare in the country. Migrant workers take to the streets, these usually well-paid multinational white-collar workers also jumped out to protest the company, which has always been stressed staff benefits, rights of multinational companies also lost their own.

Not just Microsoft, layoffs have become the norm for those big companies in the past. Moto and Hewlett-Packard, the former owner of two famous landmark buildings in the Great North Kiln, were well received by domestic companies, who also continued to lay off staff in the past two years. The blue giant IBM is also constantly doing subtraction, business is selling, people are also reducing. Telecoms giant Ericsson also started a major layoffs earlier this year, and interestingly, Huawei's global revenue just overtook Ericsson last year.

Layoffs are a means of alleviating the burden of survival, but the general depression of multinational companies, and the continuous brutal growth of endogenous enterprises in China to form a strong contrast, this elimination of the long, the flow of talent in the country will be reversed, no longer to go to the foreign company is proud, the long-term past, multinational enterprises in the human resources advantage will slowly lose.

The appearance of these seemingly unrelated, but particularly intensive, events there is a tendency to change, on the one hand, that management is moving from a thirst for multinational companies to an emphasis on indigenous innovation, and on the other hand, the fear of the long-term skills and talents of multinational companies is fading and more daring to challenge. Under these two strands, local innovation will usher in an era of revival for the attacking giants.

Sweet time has passed, Nokia China's employees are also no longer melancholy, the future better.