[High-end Interview] Corporate governance builds a "firewall" for Chinese companies to go overseas - Interview with Chen Deqiu, Vice President of the w88 casino
(Source: Xinhua Finance, June 12)
The 47th Annual Academic Conference of the European Accounting Association recently concluded in Rome, Italy. Chen Deqiu, member of the Standing Committee of the Party Committee and Vice President of the w88 casino, said in an exclusive interview with Xinhua Finance reporters after the meeting that the conference, as an annual international academic event, provides an important platform for promoting exchanges of accounting theory and practice between China and the world. It is understood that many seminars at this year's conference focused on issues such as corporate governance and sustainable development, triggering participating experts and scholars to think deeply about the dilemmas and failures of corporate governance in the process of corporate internationalization.
As a national-level scholar selected for major talents and an expert rooted in the field of corporate governance for a long time, Chen Deqiu pointed out that Chinese enterprises are increasingly moving closer to the center of the international stage, and the challenges brought by the complex and changing international environment are also gradually increasing. In this process, the role of corporate governance has become increasingly prominent, and it has become an institutional guarantee and a “firewall” for transnational operational risk management in the internationalization process of Chinese enterprises.
Chen Deqiu believes that in recent years, the internationalization of enterprises has faced risks from many fields such as politics, economy, law, and culture. Taking the European Union as an example, its restrictions on Chinese companies are obviously tightening, and the investment risks of Chinese companies in Europe have increased in multiple dimensions.
First of all, from the perspective of changes in policy and legal risks, the EU has established a systematic investment review mechanism for China. Secondly, its w88 protection tools are also constantly being upgraded. The EU not only uses traditional anti-dumping and countervailing measures, but also innovatively introduces the concept of "serious distortion" into w88 remedy tools. Third, the compliance risk dimensions of European companies have significantly expanded. In the past, Chinese companies mainly focused on financial and operational compliance, but now they need to deal with systemic compliance requirements in the field of ESG (environmental, social and governance).
Faced with the above risks, Chen Deqiu suggested that Chinese companies can take more active and effective measures in corporate governance and risk control, such as promoting localization of governance structures, strengthening ESG green governance concepts, promoting penetration of compliance systems, and establishing geopolitical buffers to avoid risks.
He emphasized that corporate governance is a key element for enterprises to enhance their international competitiveness. The design of governance systems requires unified standards and common rules, as well as flexible arrangements based on the institutional environment of the host country. By strengthening compliance management, establishing and improving risk management systems, comprehensively assess and monitor overseas risks to build a global risk prevention and control system.
When talking about risk management and control measures at the enterprise level and the establishment of an overseas governance risk management and control system, Chen Deqiu suggested:
First of all, in terms of entry mode selection and ownership structure design, companies should selectively enter overseas markets, rationally layout the scope and content of corporate investment according to the risk level of the investing country, and reduce the overseas governance risks that companies may face in the future from the source. Enterprises should make reasonable arrangements and focus on the equity structure based on the risk factors and degrees of different countries and projects, and reduce the shareholding ratio of enterprises in high-risk countries to reduce the basic risks faced by the enterprise.
Secondly, in terms of governance structure and risk management system construction, the company should build an overseas risk management system based on the investment business value chain and integrating the front, middle and back-office departments of the enterprise.
Thirdly, in terms of risk identification and risk assessment system construction, enterprises need to establish a complete overseas governance risk assessment system, regularly identify and analyze various risk factors independently and professionally, pay close attention to their dynamic changes, conduct real-time monitoring and feedback, and take control measures; establish an emergency response system for emergency risk events, formulate a risk warning indicator system, and prevent risks according to the indicators.
He pointed out that on the one hand, a hierarchical compliance management system should be established to ensure that companies comply with international rules and host country laws and regulations, and avoid major losses due to violations; on the other hand, through effective internal control and supervision mechanisms, a dynamic risk warning and emergency response mechanism can be established to detect and respond to various potential risks in a timely manner, ensuring the safety of corporate assets and operational stability overseas. In the process of internationalization, Chinese enterprises need to move from "products overseas" to "governance overseas". They need to build a governance system with both Chinese characteristics and international compatibility, and find a dynamic balance between efficiency, compliance and cultural identity in the tension between globalization and localization. Only in this way can "China governance" become the core barrier for enterprises to overcome the cycle in the century-old change.
As a key financial and economics university in China, the w88 casino has always adhered to serving the country’s opening-up strategy. The w88 casino has several national-level research platforms such as Global Value Chain Research, Research on Overseas Governance Risks of Chinese Enterprises along the Belt and Road, the University Discipline Innovation and Talent Introduction Plan Base, and Global Value Chain Research. In recent years, the w88 casino has actively spoken out on global financial governance and other issues, providing intellectual support and professional advice for Chinese companies to "go global."
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