This paper is intended to make a comparative study of MNC subsidiaries in China at different stages. First of all, we built an S-SWOT theoretical framework for MNC Chinese subsidiary strategy analysis. Then, we conducted an empirical analysis of MNC Chinese subsidiary strategies at different periods of time based on the two questionnaire-based surveys undertaken in 2001 and 2005 and a field interview made with such subsidiary executives in 2006. Our study found that MNC Chinese subsidiary overall strategies and functional strategies significantly changed from 2001 to 2006. In particular, MNC Chinese subsidiaries: became increasingly wholly foreign owned and profit oriented; boosted M&A and alliance activities; localized research and development; paid more attention to intangible assets (brand and image) management; coordinated the extent of localization and integration; and assigned key positions to local personnel. We also noticed both a strategic convergence and a considerable strategic difference between the Chinese subsidiaries of MNCs from different countries during the evolution of their Chinese subsidiary strategies.
