How Does The Government Help Enterprises "Go Out"?

"Acute" Chen Lifen thinks that the progress of the enterprise is "too slow".

When talking about the "one way", Chen Lifen, the president of the National People's Congress and chairman of the Jiangsu sunshine group, had some excitement, and she helped her glasses.

Jiangsu Sunshine Group as the largest worsted spinning enterprise in the country, half of its products are exported to Europe and the United States.

Last year, responding to the strategy of "going all the way" to go out, Chen Lifen took aim at Ethiopia in Africa.

She is going to invest 500 million dollars to set up factories there.

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The introduction of the strategy and the establishment of the Asian infrastructure investment bank have accelerated the pace of "going out" of more enterprises like Chen Lifen, and the growth of foreign trade cooperation has increased greatly in terms of geography, field and amount.

According to the Ministry of Commerce statistics, from January 2015 to November, Chinese enterprises made direct investment in 49 countries along the "one belt and one road" with a total investment of US $14 billion 10 million.

Corporate vision should be seen in the longer term.

Before choosing Ethiopia, Chen Lifen visited 8 countries.

As a whole industry chain, the printing and dyeing part can not be cut off, and Ethiopia electric power is relatively stable.

In addition, the local constant temperature and humidity climate ensures the environmental requirements of the product.

But the most important thing is that Ethiopia is a poor country, and all countries' imports are tax-free.

The products produced from Ethiopia are shipped to two markets in Europe and America. The pportation cost is equivalent to that of China's products pported to Japan in one or two weeks.

Many enterprises around have chosen Vietnam, Kampuchea and other Southeast Asian countries.

But Chen Lifen considered the longer term. She said that in the next 35 years, Southeast Asian countries with abundant labor resources are also beginning to be uncompetitive.

So this time, she hopes to "step by step".

In 2010, Chen Lifen missed a chance.

At that time, many enterprises went to Southeast Asia to set up factories, and Chen Lifen also ran several countries.

When she saw the poor infrastructure in Southeast Asian countries and the quality of staff, she was frustrated.

"At that time, there was no sense of urgency, and I felt that I had done well in the country, and there was no need to go."

Until last year, many orders from international markets were being pferred to Southeast Asian countries, and Chen Lifen finally couldn't sit still.

Since then, she has decided to "go out".

Besides China, Ethiopia is attracting investment from the whole world, and many American businesses are investing locally.

Chen Lifen said that in terms of financing costs, Chinese enterprises have no advantage.

Domestic banks or funds are very active, but the cost of financing is very high, "loan interest at least 5 points, the United States will not exceed 3 points".

Chen Lifen suggested that the government should encourage the construction of "one belt and one road" and pfer capacity, so that more interest should be given to loan interest.

"Bold enterprises have gone out, and some enterprises are worried and have been watching."

Pan Jianhua, Secretary of the National People's Congress and Secretary of the Rudong county Party committee of Jiangsu, said that many years have passed.

Because of the saturation of the domestic market, enterprises have come to Southeast Asia, and the first batch of enterprises that go out boldly are now living very well.

Do "do your homework" before going out.

Last year, Zhu Minyang, NPC deputy and mayor of Yangzhou, inspected several countries along the belt and road.

To his confusion, the delegation could not find north.

Most countries are lagging behind. Even the expedition carried out by the government does not know how to dock.

Cui Genliang, chairman of the National People's Congress and chairman of Hengtong group's board of directors, said that the development of enterprises to a certain stage and scale must be internationalized.

"One belt and one road" brings opportunities to enterprises and helps to reduce overseas risks.

Last November, Cui Genliang's company acquired VOKSEL, the largest comprehensive cable listed company in Indonesia.

Cui Genliang hopes to increase the market share of products in the "along the way" countries.

The company has put forward more than 50% of the products sold overseas, more than 50% of the capital is overseas capital, and more than 50% of the talents are international talents.

The potential risks of "going out" are certain, and some risks are immeasurable.

Cui Genliang said that before going out, we must make full preparations and build a team going out.

They do not understand international laws and trade rules.

He said that learning to avoid risks depends on talents.

For example, trade barriers are open. To do business is to avoid trade barriers to succeed.

The main way to avoid risks lies in the enterprises themselves. The only way is talent.

Zhu Minyang also endorsed this view.

For example, he said, there are more than 50 languages in the countries along the belt. If we plate Chinese into English and then plate it into local languages, we will change the meaning and efficiency of several rounds.

To this end, he suggested that the state could set up a special talent training plan for language training.

Last year, Lv Zhongmei, deputy director of the social and Legal Committee of the Twelfth National Committee of the Chinese people's Political Consultative Conference (CPPCC), devoted special research to the "going out" of enterprises.

The survey found that the first problem faced by enterprises in "going global" is the acquisition of project information.

According to the questionnaire survey, the information needed by the enterprises to go abroad includes the general situation of investment laws, tax information, approval process, foreign exchange system, labor issues, industry information, environmental protection requirements, intellectual property rights system, anti-monopoly system and so on.

However, the channels for enterprises to obtain information are relatively simple, mainly for government departments, industry organizations, intermediary agencies and the same industry (about 85%). Therefore, the information that enterprises need to know is often more difficult to obtain or obtain higher cost, such as the establishment of investment institutions, mergers and acquisitions, equity participation, capital increase and stock expansion, project risk assessment, host country government approval process and approval data preparation.

In terms of the content of the survey, enterprises are more concerned about the general survey of the business, law and tax environment in the host country, followed by the international investment environment, the host state's safety review, bilateral tax treaties and labor policies, but in practice, these surveys are often mere formality.

The risks related to host countries or host governments in overseas investment projects are wars, civil strife (38%), laws are not sound, disputes can not be relieved (35%), government corruption, policy instability, administrative efficiency is low (34%), government default, labor strike (33%), terrorist threat, nationalism and Chinese exclusion (29%), nationalization, expropriation and expropriation (18%).

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How does the government help enterprises "go out"?

"They question what we do."

In negotiations with the government of Ethiopia to buy land, Chen Lifen took the initiative to plan for the other side, but the other party has been distrusted, businesses have been repeatedly reviewed, and are required to provide various security procedures.

Chen Lifen said that before some enterprises went abroad to invest, enterprises failed to fulfill their original commitments, which led them to think that Chinese enterprises came to "collect land" for gold, leaving a bad impression.

Although these countries are very positive about attracting investment, they also very much hope that Chinese enterprises will invest in the past and raise their industrial production level, but repeated censorship is unavoidable.

Chen Lifen believes that it takes a long process to get trust.

At the time of censorship, African countries should send people to China for inspection. They need to take the delegation of the prime minister or the advisor of the premier at the advisory level, and they can't be free like ordinary business activities, so they spend a lot of time. "And our time is precious." going out "is planned and planned.

Lv Zhimei's research shows that environmental protection, antitrust and anti commercial bribe are the main censorship cases among the respondents who have been examined by the host government. Others also involve the host country's national security review, anti-dumping investigation, technology review and information disclosure.

More than half of the surveyed enterprises encountered market risks such as sudden adjustment of interest rate (exchange rate), sharp fluctuations in commodity and raw material prices.

At the moment, Chen Lifen hopes that at the national level, a directory of "going out" enterprises can be specially formulated, and the list of enterprises capable of "going out" will be examined and investigated, and eligible enterprises will be included in the list.

These lists are provided to the countries along the "one belt" road, and the other side chooses the cooperation units according to the enterprises listed on the list.

To Chen Lifen's delight, the state's policy of "one belt and one road" is becoming more and more perfect.

Not long ago, the Chinese Academy of Social Sciences, a research institute specializing in the study of "one belt and one road", announced 203 list of "going out" enterprises, including its enterprises, which are divided into 16 categories.

Soon after that, the list will be plated into many national languages and released to the world.