Chinese Enterprises Must Strengthen Risk Prevention And Control In Investing In Argentina

In recent years, the economic and trade relations between China and Argentina have developed smoothly, and the investment of Chinese enterprises in Argentina has increased significantly. This makes China become the main source of investment in Argentina in a few short years.

According to the statistics, as of now, the Sino Arab two sides are talking about the project contract amount of about 15 billion US dollars, China is rapidly leaping Argentina's third largest source of investment.

In addition, the scope of cooperation between the two sides is increasingly extensive, involving oil and gas development, rail pit, infrastructure, petrochemical, finance, energy, mining, agriculture and so on.

However, in the process of rapid expansion of Chinese enterprises' investment in Argentina, there are also some problems that can not be ignored, which not only cause investment losses to Chinese enterprises, but also have adverse effects on bilateral economic and trade relations.

Yang Shizhai, an economic and Commercial Counselor of the Chinese Embassy in Argentina, pointed out that Chinese enterprises investing in Argentina must seize opportunities, forge ahead, and strengthen research and avoid risks.

Yang Shizhai said that China and Argentina

But he also pointed out that while Chinese enterprises are actively looking for investment opportunities in Argentina, they should not forget the risk assessment and prevention.

China and Argentina are separated by thousands of miles. Their political system, enterprise system, economic situation, investment environment, market situation, legal system, trade habit and cultural background are quite different. There are many variables. There are some problems and difficulties that impede the smooth progress of bilateral economic and trade cooperation and the full play of their potential.

On the other hand, in the process of "going out", some Chinese enterprises still have problems such as lack of understanding, inaccuracy and blindness in the situation of investment countries. They are short of possible difficulties, lack of experience and adaptability and adjustment ability.

Yang Shizhai emphasized that many practices and lessons have proved that blind confidence and empiricism are undesirable in developing economic cooperation outside the country.

It is hoped that Chinese enterprises should adopt a realistic attitude and pay attention to research work before making investment decisions in Argentina. They fully demonstrate that scientific assessment is good at finding, reducing, controlling and managing investment risks.

In addition, when it comes to major projects or major problems, enterprises should inform and communicate with relevant government departments in time to gain understanding and support.

At the same time, it is also hoped that the enterprises will report to the embassy business office on the progress and problems of major projects, so that the Embassy can grasp the situation and provide assistance if necessary.

Since 2010, Chinese enterprises have encountered problems in several investment projects in Argentina, bringing difficulties to enterprises' investment and operation.

In this regard, Yang Shizhai counselor pointed out that the differences between China and Argentina are different from each other. Such a difference is a normal phenomenon of cooperation between the two countries.

Chinese enterprises should respect local laws and regulations and abide by the law in business activities.

He added that our country pursued an open strategy of mutual benefit and win-win, which is an important way for us to adhere to the road of peaceful development.

This requires us to realize the interests of ourselves while giving consideration to the concerns and demands of the other side.

Chinese enterprises should fully understand the nature of mutual benefit and win-win cooperation between the two countries in carrying out the economic and trade cooperation with Azerbaijan, and always insist on looking at and handling Sino Arab Cooperation and problems arising from a strategic and long-term perspective.

Yang Shizhai emphasized that the image and quality of Chinese enterprises are not only related to the reputation of the company, but also to the image of the country.

Therefore, Chinese enterprises must first do business in good faith and abide by the law.

Secondly, we should pay attention to integrating into local society, insisting on localized management and strengthening social responsibility. This is the foundation for long-term development of enterprises.