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Under the background of economical globalization and international competition,multinational corporations changed their investment strategy and start to carry out innovationand localization strategy. Now localization strategy already becomes the main trend for thedevelopment of multinational corporations.As the biggest developing country，China attracts the attention of global capital with itscontinuous stable development，potential big market，open policies，cheap labor and qualifiedhuman resources. Especially after Chinese accession to WTO，the multinational corporations arevery optimistic to the prospects of China，its promising market potentials，promising talents andsales networks which speed up the localization process of the multinational corporationsincluding production、marketing、R&D and so on. Lots of multinational corporations runbusiness well in China. They make not only large profits but also set up a creditable image ofenterprises and products. And it really enhances their international competition. However，thereare also some famous multinational corporations failed during their localization in China. Thethesis will closely grasp the economical globalization as its background and synthetically utilizethe multinational corporations FDI relative theory、competitive advantage theory and integrationand localization model to analyze the motivation、adopting model and detailed activitiessystematically . Based on the facts and data of our country，this thesis will analyze multinationalcorporations localization strategy qualitatively and quantitatively，also will have a research aboutthe influence to the industry organization、technology and human resource and so on. And ittakes Motorola and Wal-mart as examples and provides the theoretical and practice guide to theChinese government’s macroscopic decision and our enterprises how to face the competitivenessof multinational corporations. At the same time，this thesis will give Chinese government、foreign enterprises which want to invest in china and Chinese enterprises which want to investoverseas certain policy suggestions according to the running details of multinationalcorporations.