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Abstract This paper presents a deep study on the evolution of China's retailing"commercial presence"barriers and the characteristics of multinational corporations' strategic transformation on service trade with China. Our study shows that the"commercial presence"trade barriers of China's retailing industry has evolved through four stages since China's reform starting from 1978, and service trade barriers have evolved from prohibitive level to free trade level. With this barrier evolution, the multinational corporations' strategies on retailing service trade with China have changed correspondently. These strategic changes reflect the exploitation of external advantages （such as political, economical, cultural and technical opportunities）, the avoidance of external threats, the maximization of MNC's inherent strengths and the minimization of their weaknesses. This paper concludes that the Chinese government and local-capital retail enterprises have to actively respond to MNC's strategic change
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Received: 26 March 2009
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2009, Vol. 1 
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