2007 could well go down as the year of paradigm shift for multinationals in China.

　　In March，a single，uniform corporate income tax was set for domestic and foreign-invested enterprises，ending years of preferential tax treatment multinationals and other foreign-invested companies enjoyed.At the same time，the Property Law was enacted，giving equal protection in law to public and private property.These two moves sent out a clear yet powerful message to foreign investors：The country has shifted gears from courting foreign capital at any cost to promoting a favorable investment climate that will automatically draw international investors，who will now have to be content with a level playing field.

　　The reasons for this policy shift are not far to seek.Multinationals today need China as much as China needs them，if not more.The country is already among the top 10 markets for most MNCS while many have drawn up a timetable to make sure that it is among their top 5.For，an MNCS billing in the world market today depends on its performance in China.With the country emerging as the driving force of the world economy，any company that fails to keep pace with the rapidly expanding market here is doomed to lose the race to those who do，and eventually run the risk of losing their exalted global status.