Logistics barriers for multinational corporations doing business in China

Abstract

With rapid economic growth, China attracts many multinational corporations (MNCs) as a manufacturing center with both its cheap labor cost and a huge consumer market. While doing business in China, most MNCs have faced logistical problems in connection with the transportation of their materials and the flow of information. The research objective of this paper is to describe the current state of Chinese logistics service and identify the logistics barriers that foreign firms have encountered in China. Dell and Wal-Mart are selected as case studies. The thesis analyzes their operating strategies and solutions to various problems they encountered in China and makes some recommendations.