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A major form of a globalising international economy is the transformation of multinational companies into transnational corporations (TNCs) as the important players in the world economy, as well as in China, which is a rising economic entity in the world. This study examines the effects of transnational corporations on China in the era of globalisation. First, it provides the background of globalisation, transnational corporations, and the development and changes in the Chinese economy. Second, the study discusses the impacts of TNCs' FDI on economy in China and the technical improvement, and also analyses the Chinese economic policy and investment environment, discussing the response of TNCs to them. Third, it examines the Research and Development (R&D) of TNCs and its double effects. Fourth, the study explores the effects of TNCs on China's manufacturing industry and the changes of the manufacturing industry caused by TNCs in China. And finally, the study discusses the effects of TNCs in the field of culture.