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The article considers the motives and stages of activity of multinational enterprises (MNEs) in China. The evolution of the strategy and forms of operations of MNEs, peculiarities of the network organisation of their business in this country and cooperation with local enterprises are revealed. Changes in the innovation strategy of foreign firms and new R&D priorities of MNEs, as well as trends in the inflow of direct investment from the US, EU and Japan are analysed. Considerable attention is paid to demonstrating the impact of multinational enterprises on China's economic development, in particular on the process of capital formation and structural changes in industry, the formation of export and scientific and technological potential and human capital.