Abstract The structure of industrial organization in host country is the initial condition of the behavior of the multinational coporations, the host government and the host coporations, and is also the result of their behaviors. Under the framework of the "new industrial economics", using cases of several industries of China, this paper concluded that the concentration rate of market will become higher and similar to the international industries; the market competition will be intenser; the industrial efficiency will be higher, and the domestic consumer will benefit form it, but he development of the domestic coporations and the domestic industrial competitiveness depend on the domestic factors.
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Received: 14 December 2006
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