Abstract: Exclusively foreign-owned investment attracted more and more attention in academia and industry, even government. This paper defines and explains the concept, trend and influence of exclusively foreign-owned investment. In addition, the authors build C-R model to analyze the reason of exclusively foreign-owned investment and think that exclusively foreign-owned investment and Sino-foreign joint venture will grow together. Finally, this paper puts forward some advices to deal with the trend of exclusively foreign-owned investment.

Key words: exclusively foreign-owned investment, MNCs, alliance capability, local response capability