How can the most popular Chinese enterprises break

2022-08-24
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How can Chinese enterprises break through European barriers: self-cultivation can level the world

at a time when the European debt crisis is protracted, some Chinese enterprises with relatively abundant funds began to hope to invest in Europe to obtain valuable brands, technologies and market channels

at a time when the European debt crisis is protracted, some Chinese enterprises with relatively abundant funds began to hope to invest in Europe to obtain valuable brands, technologies and market channels. Germany, which is highly complementary to China's manufacturing industry, exports the most technology to China and has a relatively open investment environment, is undoubtedly a good choice. A set of data disclosed by German ambassador to China Shi Mingxian at the "enterprise Symposium on the 40th anniversary of the establishment of diplomatic relations between China and Germany" yesterday can also see the potential of Chinese enterprises to invest in Germany

Shi Mingxian said that at present, only about 800 Chinese enterprises invest in Germany, but more than 5000 German enterprises invest in China. In terms of amount, Germany's investment in China reached 26billion euros in 2010, while China's investment in Germany was less than 1billion euros. This imbalance should be further addressed

however, there are few successful cases at present. In order to achieve a breakthrough in investment in Europe through the European debt crisis, there are at least two hurdles to break through: understanding external policies and cultivating their internal skills

European ambivalence

an analysis of the current economic situation between China and Germany shows that the two countries are almost complementary: what China needs is technology, and what Germany needs is market. Germany's manufacturing industry accounts for a relatively high proportion of GDP. Its manufacturing advantage is mainly reflected in the high-end manufacturing industry, which is very needed for China

"to invest in Germany, first of all, the law is very sound. I think its dual corporate governance structure (board of supervisors and board of directors) is very reasonable, the local government is very direct care and support, the quality of employees is high, and the trade union is tough but civilized." Zhang Min, chairman of Shanggong Shenbei (Group) Co., Ltd., which has successfully acquired German enterprises, said when talking about the investment environment in Germany

after the completion of the acquisition in Germany, in the wake of the financial crisis, the German government encouraged enterprises not to lay off staff, with half of the wages paid by enterprises and the remaining half subsidized by the government. In the most difficult year of 2009, the German government subsidized the acquired enterprise a total of 2.1 million euros, which was almost 20 million yuan at the then exchange rate

Wang Zhile, a researcher at the Research Institute of the Ministry of Commerce, commented that such an approach is to treat Chinese invested enterprises completely as local enterprises and enjoy national treatment, a concept that China may not have yet. "Therefore, Jinan experimental machine factory 1 attaches importance to protecting the interests of consumers. Germany's investment environment is indeed relatively open, giving national treatment to foreign-funded enterprises, and other European countries are also better." He said

even so, the public mentality and policy bottlenecks faced by Chinese enterprises in Germany and even the entire EU still need a long time to break through

wuteke, the representative of BASF China, has always been famous for his sharp and frank joint venture between Liansi CVC investment company and royal DSM of the Netherlands. He frankly pointed out the first psychological obstacle that Chinese enterprises generally face in the EU: many people regard China as a threat to the comfort and ergonomics of bus seats with memory cotton. Many people think that the strength of China and more Chinese going to Germany mean that Europe's own unemployment rate may be higher and higher

but in fact, according to what he knows, two-thirds of China's investment in Europe is private investment, not state led investment as many reports say. However, relatively large investments are made by state-owned enterprises, which generally involve more important fields, such as oil and other resource industries

"these private enterprises only look for places that can really make money, so they don't go to Eastern Europe first. They directly enter the most developed countries in Europe, the German market and the British market." Woodock said

the durability of China real gold plate is actually not good. The problem of Chinese funded enterprises is that many Chinese funded enterprises still prefer to choose acquirers from other regions in the face of their higher bids and more attractive conditions. For such enterprises, we need to understand that money can't solve everything in a successful M & A, and we need to cultivate our internal skills first

Li Fusheng, a full-time examination and approval member of the credit examination and Approval Committee of the Export Import Bank of China, has experienced many similar cases. He believes that these enterprises should first understand whether their acquisition intentions really have a broad vision. He said that in such cases, although the investment and quotation of Chinese buyers may be relatively high, it is better to sell to European companies in terms of brand maintenance and management continuity. In the view of these European companies, selling to China may bring a good price, but it does not bring a good value to the company

Li Fusheng analyzed that these enterprises should first ask themselves: why do they want to invest in Germany? "According to our experience, the real answer is that if I buy it, I will become the world leader in this field and do it for scale."

secondly, the problems often encountered in investment in developed countries, such as environmental protection, labor system and visa, must be done well in advance. In addition, the problem of values is also very prominent, and we need to be good at absorbing German values. In the view of the participants, the above issues are all areas that Chinese enterprises interested in entering Europe need to improve

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