Fujian Shoe And Other Private Enterprises And Other Supporting Policies.

"Going out" is a necessary road.

In June 26th, Guo Jian, chairman of Fujian Yanan Motor Co., Ltd., told reporters.

Guo Jian used "7 mountains" to describe the situation of private enterprises from last year to this year: RMB appreciation, depreciation of the US dollar, interest raise, raw material price increase, oil price rise, labor cost increase and financial risk increased after the labor contract law was promulgated.

Guo Jian said that in such a situation, some private enterprises can only "go to sea" to find their way out for better survival.

The latest statistics from the Department of foreign trade and economic cooperation of Fujian province show that the desire for "going out" of private enterprises is increasing. As of May 2008, 486 private overseas enterprises approved and approved by Fujian accounted for nearly 71.5% of the total number of approvals, and the total foreign direct investment reached 490 million US dollars, accounting for 60.7% of the total.

This does not include a large number of private overseas enterprises which have not been approved or unreported.

Environmental upheaval led to "leaving". Chen Ansheng, deputy director of the Fujian Provincial Department of foreign economic relations and trade, said that one of the main forms of overseas investment of Fujian private enterprises is to carry out overseas extended trade based on trade, or set up their own overseas trading company, or directly set up direct selling channels such as chain stores and brand stores, so as to effectively grasp the sales channels and value added links, and enhance the competitiveness of the international market.

At the same time, more than 150 private enterprises in Fujian have set up overseas processing trade enterprises, involving textiles, clothing, building materials, sports shoes, edible fungi and other products, driving large quantities of raw materials and semi-finished products export annually.

Chen Fanglin, chairman of Aaron group, said that before 2003, its products were mainly sold through North American and European importers or Hongkong Special Administrative Region foreign merchants and Taiwan traders in China.

With the continuous changes in the operating environment, the cost pressure is increasing. In order to avoid the vicious competition of homogeneity of domestic enterprises, Aaron group realizes that it must establish its own brand and set up a company in the target market for sale.

Subsequently, Aaron group held the original importer of its products in the form of acquisition.

Chen Fanglin said that acquiring and holding an original import company is the fastest and lowest cost way to enter the target market, because "they know that big retailers will eventually do business directly with the factory", so they offered to form a strategic alliance with Aaron group.

Through several years' efforts, Aaron group's brand awareness and reputation in the North American market have been greatly improved from scratch, and some of its price is 10% higher than that of its competitors.

Chen Fanglin told reporters that Aaron group is currently planning to set up a company in Europe next year, responsible for sales and services in the European market.

Fujian is a relatively scarce resource province, and many resource utilization Fujian private enterprises have begun to "sea" to find overseas resources.

The most typical example is Fujian Zijin mining.

It is understood that Zijin Mining has invested in establishing and purchasing companies or overseas companies in 8 countries and regions such as Hongkong, Canada, Russia, Mongolia, Burma, South Africa, Peru and Tajikistan through "acquisition of independent development of mines and mergers and acquisitions through capital markets".

Shen Guo, chairman of Fuzhou state long group, said that Fujian's economic development is relatively fast, but its mineral resources are relatively scarce. To break this situation, it is very necessary for private enterprises to go out.

According to him, the Group invested by Fujian state long group and Limited by Share Ltd of Philippines bulk mining group co founded two mineral company, with a total investment of 1 billion 500 million yuan and 42 mines in the northern part of Philippines.

Shen state told reporters that last year, just more than 200 square kilometers of mining area has been identified, the conditions are very good, all are open-pit mining, and is located at the seaside, "I hope to cooperate with the state, but also hope to get the support of related supporting policies".

Policy support needs to be strengthened. Despite the high voice of Fujian's private enterprises running away, in fact, the scale and effectiveness of "going out" is far from enough.

Figures show that in 2007, Fujian's foreign direct investment amounted to 309 million US dollars, which accounted for 2/1000 points and three of the total GDP in that year. The ratio of utilizing foreign capital to foreign investment in that year was 13:1, far from the national average.

Chen Ansheng believes that many of the existing laws and policies to implement the "going global" strategy are formulated under the condition of capital shortage, especially in foreign exchange management.

In addition, the relevant legislation is lagging behind, which is obviously out of step with the new situation at this stage.

He pointed out that so far there are no written laws or regulations to support and protect enterprises' "going out".

Some private entrepreneurs told reporters that the government's policies such as finance, credit and credit insurance, which support the going out, are too high and the coverage is small.

Some private enterprises in Fujian suggest that the government and enterprises should jointly invest and establish a special risk fund for offshore resources development, which is used for offshore resources exploration and feasibility study of enterprises.

In addition, in order to protect the legitimate rights and interests of the enterprises and personnel going out, we should consider establishing the investment risk assessment safeguard mechanism for the key areas and key projects encouraged by the state.

Huang Mengfu, vice chairman of the CPPCC National Committee and chairman of the National Federation of industry and commerce, also said that "going out" depends mainly on enterprises, but government support is essential. Especially in terms of resource allocation, for example, a large amount of foreign exchange reserves should be allocated according to the market, but not by ownership.

While encouraging and supporting "conditional private enterprises" to go out, Huang Mengfu also said: "most enterprises are not ready yet."

He pointed out that private enterprises should go out, and their models and products should be suitable for the locality, so as to bring benefits to the local politics, economy, culture, religion and human rights.

"If you don't pay attention to this, you will encounter problems sooner or later."

He said.