Chinese Enterprises Are Still Trying To Get Out Of The Water Stage.

After China's accession to the world trade organization, foreign investment also began to grow rapidly.

From $2 billion 700 million in 2002 to $16 billion 100 million last year.

From $2 billion 700 million to $16 billion 100 million, the figure is not surprising.

What prompted China to have such a high growth in foreign investment?

What are the most worth learning and discussing experiences in the process of Chinese enterprises going abroad?

How should we make strategic positioning and path selection?

How to improve the success rate and efficiency of going out?

In the second report of "Chinese enterprises going out", our reporter interviewed Long Guoqiang, Vice Minister of the Ministry of Foreign Economic Research of the State Council Development Research Center and Zhang Yansheng, director of the Foreign Economic Research Institute of the national development and Reform Commission.

Reporter: after China joined the world trade organization, foreign investment began to grow rapidly, from $2 billion 700 million in 2002 to $16 billion 100 million last year.

Therefore, many people believe that Chinese enterprises have reached a climax of foreign investment.

Do you two agree with this view?

We can say that the environment at home and abroad is very supportive of Chinese enterprises going abroad.

But we can not say that we have reached the "investment climax" stage.

In the survey, we found that more and more enterprises began to enhance their investment awareness. However, their current state is at the stage of "trial water", and there are not many really good swimmer.

Zhang Yansheng: the current situation of China's going out is a bit like the beginning of investment and investment in the early stage of reform and opening up in 1979.

For the so-called increasingly large Chinese multinational enterprises, I think this can not be overestimated, nor can it be overheated.

Reporter: in the course of globalization of Chinese enterprises, what are the most worth learning and exploring experiences for Chinese enterprises to go out?

Guo long Guo Qiang: enterprises going out is like learning to swim, not jumping into the water, they will never learn.

In recent years, although Chinese enterprises have gone through many setbacks, they have gained a lot of experience.

Many enterprises have expanded the space for enterprises to allocate resources globally through overseas investment, and some resource-based enterprises have gained the right to expand overseas resources, thus enhancing the ability of pnational operation of enterprises.

Some enterprises have gained international marketing channels.

For example, TCL, through foreign investment, used North American sales channels, is more conducive to the development of enterprises.

Reporter: so, which Chinese companies have been most successful in integrating into the global economy?

Zhang Yansheng: in the areas where Chinese private enterprises are active, the pace of enterprises going out is relatively fast. For example, some enterprises in Zhejiang and Fujian, whose products have comparative advantages, such as shoes, textile and clothing, leather clothing, can be seen in Italy and France.

Secondly, some powerful state-owned enterprises or restructured joint-stock companies, such as ZTE, Haier, HUAWEI and other well-known enterprises.

They attack all over the world, and they can see their agents and distributors in South Asia, Southeast Asia, Africa, Europe and the United States. Some of them even sell for billions of dollars.

Their practice of going out shows that China's advantages are no longer just clothing, luggage and other products.

Another one is some overseas projects in China, such as overseas contracting projects such as China Construction, and some new models established by our banks in Africa and Latin America, such as the Angola model and Venezuela model, including the 6 billion 500 million dollar contract project in Algeria. These are more part of the national strategy driven by demand. We need to find energy, resources and market in the global scope. Therefore, we need close coordination and cooperation between policy banks and enterprises.

The acquisition of "rotten apple" reporter: we have encountered many failures in the foreign mergers and acquisitions of Chinese enterprises.

What are the difficulties and problems faced by Chinese enterprises going abroad?

What are the important lessons?

Are there any common weaknesses and shortcomings in Chinese funded enterprises?

How to improve?

Zhang Yansheng: the difficulty in implementing the strategy of going out is mainly whether the management, financial management and risk management of overseas enterprises can be internationalized.

The second is whether the talents can be localized, including whether the various domestic staff can be localized.

The second is whether we can establish the regulatory system and mechanism of international state-owned assets and internal governance structure in line with international standards.

In my opinion, it will take a long time to solve these difficulties effectively, and many Chinese enterprises need to gradually solve them in practice.

Guo long Qiang: we found in the survey that many enterprises lack an investigation procedure when they invest abroad.

Some entrepreneurs invest with a momentary impulse. They bring a lot of bad results.

Our enterprises have not yet formed the habit of making full use of investment banks and consulting companies as intermediaries to do feasibility study.

When our enterprises go out, we must learn to use crutches well. In the process of investment decision making, when mergers and acquisitions, when we know each other's situation, we can draw on the experience of experienced multinational companies and global consulting companies, which may cost money, but this money and the final significant loss ratio, or the ratio of significant gains to obtain, is very worthwhile.

Reporter: how should Chinese enterprises go out and make strategic positioning and path selection?

How to improve the success rate and efficiency of going out?

Zhang Yansheng: first of all, difficulties in corporate culture.

M & A is only a matter of acquiring assets, and it is more important to achieve effective integration between Chinese corporate culture and local corporate culture.

The important thing is to integrate the other side instead of being integrated by the other side.

In the 80s of last century, Japanese automobile companies such as TOYOTA encountered the conflict between their own nation, enterprise culture and local culture in the process of merging American enterprises.

This point must be paid attention to.

Guo long Qiang: M & A is like buying Apple.

When a lot of enterprises invest through mergers and acquisitions, they often encounter difficulties in their operation.

This is like buying "rotten apples", and these "rotten apples" are even worse in the weaker enterprises.

Therefore, the acquisition must grasp the opportunity and must be carefully studied and analyzed beforehand.

When some enterprises in China go abroad to buy and buy, they are reluctant to buy the sunset industry. How can they continue to develop?

According to a survey by many consulting firms, the success rate of cross border mergers and acquisitions is only about 30%.

For example, Benz Corp and Chrysler have not been able to integrate Chrysler after 9 years of "marriage" and "divorce" recently.

How should group advantages be played?

Reporter: Chinese multinational enterprises are becoming a huge group. But to a large extent, Chinese enterprises rely on individual soldiers to go out.

In the process of globalization, how should group advantages be effectively and rationally played?

Guo long Qiang: enterprises should have a long-term strategy. They should not take a short-term attitude. They should regard foreign investment as a strategic content of enterprise development and consider it carefully, so as to formulate corresponding management plans and coordinate various relations with local governments. Some enterprises, driven by short-term interests, have caused some bad effects on the local enterprises and have damaged the overall interests of Chinese enterprises.

Secondly, we should pay attention to integrating local resources, including absorbing experienced managers from other countries.

Finally, we should also pay attention to establishing corporate social responsibility consciousness in environmental protection and so on.

In fact, there are many foreign enterprises that have achieved success in China. They can become teachers of Chinese enterprises in this field.

Zhang Yansheng: some of the enterprises that go out in China still have bad faith and non-standard behaviors, which have caused a lot of damage to the overall image of Chinese enterprises. We should also see that.

In the exchange with excellent decision makers such as Haier, he said that enterprises' going out is not only an economic activity, but also a political, cultural and social aspect.

Haier has tried to acquire the second largest electrical appliance company in the United States. It has encountered resistance and obstacles in various aspects such as law, society and so on. The mainstream media in the local area also published reports that are not conducive to Haier's local image. The same things happened in Japan and Korea.

In a sense, entrepreneurs are not only entrepreneurs, but also diplomats, statesmen and social activists.

He is an expert in special allowance of the State Council, Vice Minister of Foreign Economic Research of the development research center of the State Council, visiting fellow of the Brookings Institution of the United States, and visiting scholar of George Washington University.

Zhang Yansheng: Director of the Foreign Economic Research Institute of the national development and Reform Commission, director and researcher of the Foreign Economic Research Institute of the national development and Reform Commission, and part-time professor of Central University of Finance and Economics and Huazhong University of Science and Technology, enjoying the special government allowance issued by the State Council.