Moderator: our reporter Li Yuyang Feng Qiyu

Guest:Director of the International Cooperation Office of the National Development and Reform Commission’s Institute of Foreign Economic StudiesZhang Jianping, Bai Ming, researcher at the Institute of International w88 and Economic Cooperation of the Ministry of Commerce,Sang Baichuan, Dean of the Institute of International Economics, w88 casino

New trends:The all-round investment pattern is gradually emerging

What are the new trends in “going global” of Chinese w88 mobile currently? What factors contribute to the emergence of new trends?

Zhang Jianping: There are many highlights in the enterprise’s “going out” strategy, which are remarkable. First, China’s investment scale has expanded rapidly, especially the proportion of mergers and acquisitions has increased significantly. In the first five months of this year, my country's foreign investment increased by more than 60%, compared with about 20% to 30% before. Second, overseas investment in the manufacturing industry is on the rise. In the past, business services and leasing, finance, resources and energy industries had more "going out", but recently the manufacturing industry's overseas investment has grown rapidly, such as Geely's acquisition of Volvo, Sany's acquisition of Germany's Postmeister, etc. Third, in the field of infrastructure construction, especially large-scale projects such as high-speed railways, power stations, ports, airports, and highways, the trend of Chinese w88 mobile “going global” has become more obvious, especially in countries along the “Belt and Road” initiative. Fourth, under the new normal, China has become a net foreign investor in 2016, regardless of the statistical caliber.

There are two main reasons for these new trends. First, China has now reached a stage where the growth rate of foreign investment is higher than the growth rate of imported investment. Currently, China's per capita GDP exceeds US$8,000. According to economists' calculations, after a country's economic development reaches this stage, foreign investment will continue to increase, and the growth of a number of multinational companies will also make the demand for foreign investment even stronger. Secondly, the Chinese government is actively building a platform for enterprises to "go global". The proposal of the "Belt and Road" initiative, the promotion of free w88 zone construction, and the promotion of international production capacity cooperation have all created a good policy environment for more enterprises to "go global".

Bai Ming: In recent years, the growth rate of my country's foreign investment has accelerated, and the scale of foreign investment is roughly equivalent to the scale of utilizing foreign capital. my country is gradually moving from a large commodity exporting country to a large capital exporting country. The good news is that the current "going out" of w88 mobile is no longer limited to traditional industries such as resources and energy, and a comprehensive pattern of overseas investment is taking shape. The service industry, which has not performed very well in the past, is also gaining momentum in "going global", such as Wanda's acquisition of AMC, the second largest theater chain in the United States, and so on. There have also been many breakthroughs in the sports industry, such as Suning acquiring about 70% of the shares of Inter Milan.

Behind the acceleration of “going out” is the enhancement of the comprehensive strength of Chinese w88 mobile and the improvement of their international influence. In addition, the current international economic situation also provides many opportunities for mergers and acquisitions.

Sang Baichuan: In recent years, the overseas investment of my country's manufacturing w88 mobile has accelerated significantly, and the overseas investment of producer services related to manufacturing has also grown rapidly. It is particularly important to emphasize that not only the foreign investment of state-owned w88 mobile has grown rapidly, but the foreign investment of private w88 mobile has also grown very fast. This shows that the vitality and strength of my country's private w88 mobile are increasing.

New environment：Operation philosophy needs dynamic adjustment

There are many companies that operate smoothly in China, but once they enter the new overseas environment, they are not acclimated. Behind this common phenomenon, are there some common issues that companies should think about and summarize?

Zhang Jianping: Judging from the current cases, domestic w88 mobile need to seriously think and summarize in many aspects. First, it is necessary to dynamically adjust operating concepts and methods. There are different winds in ten miles. Many companies perform well domestically, but if they completely copy their domestic operating models and ideas into the new environment, they will make empiricist mistakes. Second, we must further enhance the internationalization of w88 mobile. In the era of globalization, w88 mobile must do their homework, actively reserve talents with international vision and international resources, and actively cultivate comprehensive talents with overall thinking to adapt to the challenges in the new environment. Third, after the project is implemented, the company must strengthen communication with all sectors of society, eliminate misjudgments and misunderstandings caused by differences in culture and concepts, and nip possible risks in the bud.

Bai Ming: Many companies have not made corresponding preparations before "going out". Some have unclear globalization strategies, some have insufficient understanding of their own comparative advantages, and some have blindly pursued excellence and neglected talent development and the update of management systems. These potential risks will be quickly amplified after the enterprise "goes out" and becomes an obstacle for the enterprise to "go out but not go in".

Sang Baichuan: In the eyes of some countries, my country's state-owned w88 mobile are defined as the same owner. For example, when different construction companies in our country bid separately for overseas engineering projects, they are considered to have the same owner behind them, and there is a possibility of bid-rigging. The other party will use this to block Chinese state-owned w88 mobile. This is actually a serious misunderstanding of the operating model and management framework of China's state-owned w88 mobile. To eliminate this misunderstanding, it is necessary to accelerate the reform of state-owned w88 mobile. At present, the overall reform plan for state-owned w88 mobile has clarified the ideas for reforming the classification of state-owned w88 mobile, but further clarification and accelerated advancement are needed.

In addition, many companies “going global” have also been involved in political disputes in other countries and regions. For example, the contract cancellation of China's high-speed rail was mainly due to political considerations. The Express West company said in a statement that the biggest obstacle to the project comes from the U.S. federal government's regulations that "high-speed rail trains must be manufactured in the United States." The U.S. government actually sets such conditions to increase employment opportunities in the country. It can be said that such regulations violate the rules of the World w88 Organization. The WTO Agreement on w88-Related Investment Measures clearly stipulates that restrictions on the proportion of domestic sales, restrictions on the proportion of domestic production, regulations on the proportion of exports, etc. are prohibited. But in an election year in the United States, such a decision can easily win the support of voters and is often used as a tool to influence the election.

New question:Many risks are gathering

While seeing the achievements, we must also realize that Chinese w88 mobile also face many risks and setbacks when "going global". Judging from the existing cases, where do these risks mainly focus?

Zhang Jianping: The risks of w88 mobile “going global” exist in many aspects. First, there are security risks, including risks to the political stability and legal level of the other country and region. Secondly, there are still business risks. Some investment projects are of high quality, but follow-up funds cannot be followed up, which ultimately leads to the failure of the project. Thirdly, there are market risks. Although the enterprise project is implemented, the products produced do not meet the market demand and cannot ultimately make a profit. In addition, there are social and cultural risks. Misunderstandings and disagreements caused by cultural differences often affect the popularity of corporate projects. All these risks require w88 mobile to do their homework in the process of "going global". On the one hand, you can use relevant professional institutions to conduct risk analysis; on the other hand, you can also purchase commercial insurance to share investment risks.

Bai Ming: Compared with the export of commodities, the export of capital is more complex, and the likelihood of encountering risks and setbacks is correspondingly higher. We need to be normal about this. With the improvement of the comprehensive competitiveness of Chinese w88 mobile, the "going out" of manufacturing industry is no longer low-end manufacturing. As a representative of the transformation and upgrading of the manufacturing industry, high-speed rail has high technological content and innovative factors. Experience shows that the more high-tech a company is, the more difficult it is to “go global”. At present, high-speed rail is encountering certain difficulties in "going out", but this cannot stop the trend of my country's manufacturing industry "going out" to move towards high-end. However, this also reminds Chinese companies that before “going global”, they must fully understand each other’s foreign investment policies and access systems, and find out whether there are any hidden restrictions, so as to avoid losses at the last moment. In addition, during the investment process, you must also pay attention to whether the other party has complex creditor-debt relationships, whether there are restrictions on production locations, etc.

Sang Baichuan: In the process of "going global", w88 mobile face various risks, especially some micro-level risks that cannot be underestimated. As the saying goes: details determine success or failure.

For example, during the investment process, attention should be paid to whether the project will be subject to security review and antitrust review. Even if there is a cooperation agreement between enterprises, if it is subject to these two reviews, the implementation of the agreement will face greater risks. After the agreement is signed, there is also the risk of breach of contract due to the proliferation of w88 protectionism. Even if these barriers are passed, in the process of business operation, differences in values and cultural concepts will also cause obstacles to the company's integration into the local area.

New Countermeasures:Use conflict management tools well

It is foreseeable that the scale and industries of Chinese w88 mobile “going global” will continue to grow. Faced with numerous risk points, what aspects should w88 mobile focus on to nip problems in the bud?

Zhang Jianping: As Chinese companies “go global” more and more frequently and in wider and wider fields, there will be more and more risks in all aspects. To this end, companies need to prepare in four aspects. First, w88 mobile must have a strong awareness of risk prevention; second, w88 mobile must make full use of local talent resources while vigorously cultivating interdisciplinary talents; third, w88 mobile must focus on cultivating independent brands and mastering independent intellectual property rights; fourth, w88 mobile must be good at using conflict management tools to resolve various conflicts and problems. To improve risk response capabilities, we can rely on various forces. For example, the commerce department compiles and issues country (region) foreign investment guides every year, and some large companies also compile risk investment reports for different countries and regions every year. In addition, some consulting companies and accounting firms will also release risk investment reports from time to time. This information can provide powerful help for companies to avoid risks.

Sang Baichuan: Currently, Chinese w88 mobile’ “going out” problems include too concentrated fields, too close technologies, and too serious homogeneity. These companies compete for projects and resources in the international market, which not only damages the overall image of Chinese companies, limits the possibility of companies competing at a higher level, but also increases the risk of corporate investment projects failing. To break this situation, in the final analysis, w88 mobile must effectively enhance their independent innovation capabilities, form differentiated products and services with core competitiveness, and become "irreplaceable".

In addition, "going out" requires overall coordination and cannot be rushed in all at once. It would be a great benefit if a chamber of commerce or an industry association could play a coordinating role and avoid disorderly competition. In the early years, Japanese general trading companies played a big role in the process of companies "going global". Often when a company enters a country's market, other companies will automatically choose other areas of the country's market or the same market in other countries to avoid vicious competition. In this regard, our country also needs to play the role of industry associations or chambers of commerce to provide consultation and suggestions before, during and after the event.

Bai Ming: w88 mobile must work hard on their own competitiveness and improve their ability to adapt and respond to various risks. First, we must correct the purpose of investment and truly consider making overseas investment projects bigger and stronger; secondly, we must conduct sufficient investigations and research to improve our scientific decision-making capabilities, opportunity capture capabilities, and risk prevention capabilities; finally, once an investment decision is made, we must continue to improve our comprehensive gaming capabilities. For example, when there is a gap in the focus of cooperation with the other party, it is necessary to seek common ground while reserving differences, so that the partner can see that only by making the cake bigger together can mutual benefit and win-win results be achieved.

At the same time, enterprises must make good use of policies to "go out". Enterprises' overseas investment must be fully integrated with the improvement of my country's opening-up level, especially in conjunction with major strategies such as the "One Belt, One Road" and the construction of free w88 zones. We must make full use of China's advantages as the world's second largest economy and largest trading nation. At the same time, enterprises' "going out" must also be combined with industrial transformation and upgrading. Through foreign investment, they can obtain more scarce resources and a broader market and achieve sustainable development of enterprises.

In a certain sense, many of the risks that companies will encounter in the future when they “go global” will be completely new. This requires w88 mobile to continuously strengthen their risk prediction capabilities, and through a comprehensive understanding of new rules, new platforms, and new policies, they must study and judge risks in advance and prepare response plans.

With original link：http://paper.ce.cn/jjrb/html/2016-06/20/content_303969.htm