Zhejiang Enterprises Staged The World's Largest Seamless Underwear Acquisition Case

Since the second half of last year, international commodity prices have dropped significantly, which provides favorable opportunities for Chinese enterprises to expand overseas.

At the same time, Chinese manufacturing enterprises are also facing the opportunity to extend the industrial chain and expand the market.

In March 16th, the Ministry of Commerce issued the "overseas investment management measures" on its official website, announced the Ministry of Commerce's measures to deal with the crisis and promote the economy, and encouraged enterprises to "go out" by reducing the authorized authority and procedures for foreign investment.

Reporter learned in the interview that many powerful enterprises are prepared to take the opportunity of "financial crisis" to "go out". But at the moment, they do not know whether the financial crisis is bottomed out, and most of them remain on the sidelines.

Xu Jianxin, director of the external economic and Trade Cooperation Bureau of Hangzhou, said that all the policies are "comma" rather than "full stop", and overseas investment should be cautious.

In March 11th, the 500 employees of two seamless underwear enterprises in New York and Losangeles returned to normal work.

More than 3 months ago, these employees were at risk of bankruptcy and laid-off jobs.

Today, more than 20 shareholders of the two American companies have been replaced by Chinese boss Zhejiang Textile Co., Ltd.

At present, the production plan of "Mei Bang textile" has been scheduled for 2010.

It is because of the world's largest seamless underwear acquisition case that Zhuji's private enterprise, founded in 2003, has leapt to become the world's largest multinational group.

It is understood that before the merger, 15 years of history of the two U.S. companies ranked three in the industry, "Mei Bang textile" ranked fourth in the world.

The opportunity for "Mei Bang textile" to "fish big fish" lies in the industry change brought by the global financial crisis.

It is reported that "Mei Bang textile" cooperation with two U.S. companies began in October last year.

In view of the cancellation of textile quotas this year, "Mei Bang textile" signed an agreement of intent with its two American companies for its OEM processing.

By November last year, two US companies announced the cancellation of the procurement plan.

Because of the spread of the financial crisis, the lending banks of two American companies were in financial crisis and borrowed money, causing the two companies to fall into a liquidity exhaustion, and "Mei Bang textile" took the opportunity to buy all their shareholdings.

Wang Ling, general manager of "Mei Bang textile", believes that this is a good opportunity for Chinese enterprises to buy overseas.

In fact, Chinese enterprises' overseas "bottom up actions" are frequent in recent years.

According to a report released by Reuters, the largest financial information provider in the world, as of February 17th this year, the total overseas acquisitions of Chinese enterprises increased by 40% compared to the same period last year, when the global cross-border M & a decreased by 35%. The amount involved amounted to 21 billion 800 million US dollars, second only to Germany.

The 3 fastest days for overseas investment can be approved. "Overseas investment management measures" came into effect in May 1st and faced with overseas investment opportunities brought about by the global financial crisis. The Ministry of Commerce issued the "overseas investment management measures" on its official website on 16.

The method will come into force on May 1st this year.

The notice of the Ministry of Commerce and the Hong Kong and Macao Affairs Office of the State Council on Issuing and approving matters relating to the approval of mainland enterprises for investment and start-up enterprises in Hongkong and Macao Special Administrative Region shall be repealed at the same time.

In comparison with the existing regulations, the "overseas investment management measures" only retained the approval authority of the Ministry of Commerce for a few major overseas investments, including overseas investment of more than 100 million US dollars, and specific foreign investment in specific countries.

With the estimated number of applications approved in 2008, about 85% of overseas investment approval will be handed over to the provincial commerce department in the future.

At the same time, the approval process will be further simplified.

Most overseas investment enterprises only need to submit an application form, and they can get the certificate of overseas investment within 3 working days.

According to the previous declaration system, the approval process takes about 1 months.

In addition, the certificate for overseas investment of enterprises also highlights the key points of management, strengthens guidance services, puts forward behavior norms, establishes "information service system", provides timely consultation and information services for foreign business organizations, and guides enterprises to abide by the laws and regulations of host countries and undertake social responsibilities.

Yao Jian, a spokesman for the Ministry of Commerce, said that under the current situation of coping with the international financial crisis, further expansion of foreign investment is of great significance to promoting economic growth.

The Ministry of Commerce recently formulated the "overseas investment management measures", which will further reform the overseas investment management system, facilitate overseas investment facilitation, and vigorously support Chinese enterprises to "go out" to participate in international economic cooperation and competition.

The policy is "comma" instead of "full stop". Hangzhou enterprises need to be cautious in overlooking the overseas market.

It is understood that the overseas investment of Chinese enterprises has not slowed down due to the global economic downturn. At present, overseas investment in resources and manufacturing enterprises is particularly active.

The Ministry of Commerce recently showed that foreign direct investment of Chinese enterprises was US $52 billion 150 million in 2008, an increase of 96.7% over the same period last year.

The total turnover of foreign contracted projects reached US $56 billion 600 million, an increase of 39.4% over the same period last year.

In the 1 and February of 2009, the turnover of Chinese enterprises contracted by foreign businesses reached US $7 billion 960 million, up 24.8% over the same period last year.

For the Ministry of Commerce promulgated the "overseas investment management measures" to encourage enterprises to "go out" policy, the industry believes that all the current policies are "comma" rather than "full stop".

Reporters learned in the interview that many powerful enterprises are prepared to take the opportunity to "go out" through the financial crisis. But at the moment, they do not know whether the financial crisis is bottomed out. Most of them are on the sidelines.

Xu Jianxin, director of the external economic and Trade Cooperation Bureau of Hangzhou, said: "at present, the ability of Chinese enterprises to invest in foreign countries is constantly increasing, and the mode of investment is expanded from the establishment of investment to cross-border mergers and acquisitions, equity participation and overseas listing.

The field of investment has also expanded from simple processing to resource development, manufacturing, R & D, and many other fields.

The approval authority for decentralization of overseas investment will greatly enhance the efficiency of overseas investment and reflect the state's determination to support enterprises' "going out".

Xu Jianxin said that although overseas investment has gained the brand and channel of others, it should also take into account the risks that may exist in other countries. For example, laws, regulations, customs and culture, market demand, etc., enterprises need to be cautious in speeding up the "overseas copying".

More clothing investment information, click here to enter the responsibility editor: Wang Xiaonan