Abstract 1. Why should enterprises go globally? There are 224 countries and regions in the world, 193 countries, 31 regions, 174 countries that have established diplomatic relations with China, and 198 countries that maintain good trade with China. However, the export of abrasive products is more southeast...
First, why should companies go out?
There are 224 countries and regions in the world, 193 countries, 31 regions, and 174 countries established diplomatic relations with China, and 198 countries that maintain good trade with China. However, the export of abrasive products is mainly in Southeast Asia and Europe and the United States. In addition to these two regions, the export ratio of abrasives is still small. There are still a lot of cakes in the foreign market, so we have to go out. Bring new business opportunities to grinding enterprises.
As we all know, China is a big manufacturing country, and the output of many manufacturing products has already ranked first in the world. This is a gratifying achievement. But objectively speaking, this has not only led to a serious overcapacity, but also brought a heavy burden to China's energy, resources and environment. Overcapacity in the steel industry will have many adverse effects on downstream hardware mills, and these companies will be forced to significantly reduce costs to maintain profit margins. With the rise in raw material prices and labor costs, labor-intensive companies such as hardware abrasives have already felt the pressure of rising costs. The low-cost competitive advantage of the past seems to have been completely lost overnight. The cost is high and demand is shrinking. To change this situation and lead enterprises out of the predicament of overcapacity, it is an option to go abroad and find broader business opportunities.
To accelerate the transformation of the economic development mode, Chinese enterprises must bravely go out, invest overseas, mergers and acquisitions, make full use of overseas resources to serve China's economic construction, and enhance China's position in the international division of labor system. At the same time, the "going out" of Chinese enterprises is also conducive to the economic development and technological progress of the countries concerned, especially developing countries, and achieve a win-win situation.
In other words, although each company has different purposes to go out, for example, some are to build their own raw material base; some are to expand their own market; some are to extend their product value chain to the world. But no matter what the reason is, it is to maximize the use of globalization and marketization opportunities to enhance the global competitiveness of enterprises and maximize the economic benefits of enterprises.
It is understood that our neighboring countries are rich in resources and need to be developed. For example, Vietnam's bauxite resources are not only much better than domestic, but also have reserves of 10 billion tons, while China has only 2 billion tons. Not only Vietnam, Cambodia, Laos, Indonesia, etc., the resources are very rich. As everyone knows, in addition to the main ore of aluminum smelting, bauxite is the main raw material for the preparation of advanced abrasive materials and grinding wheels.
Second, what are the advantages of SMEs going out?
Small, weak and scattered are the biggest characteristics of China's hardware grinding enterprises. However, SMEs have their own unique advantages in “going outâ€. The first one is the institutional advantage. Most of the small and medium-sized enterprises in China are private enterprises, and the mechanism of private enterprises is more suitable for the foreign environment. China's private enterprises have grown up in a relatively inferior environment in China, and their vitality is very strong.
Second, the boat is a good turn. The technology and equipment transformation and upgrading problems faced by small and medium-sized enterprises can be solved by “going outâ€. On the one hand, compared with China, many developing countries are lagging behind. The technologies and equipment that we have to eliminate here are likely to be relatively advanced among them, so that equipment can be transformed into relatively backward countries; On the other hand, in order to solve the labor force and increase the economic aggregate, developing countries will have preferential policies in attracting foreign investment. We have a lot of articles to do. As a typical example, Santana has been popular in China for decades. However, at the time, this model faced the embarrassment of being eliminated in Germany. However, at that time, China’s automobile manufacturing industry had great demand, industrial level was backward, and the economy was underdeveloped. It is prevalent in China.
Third, bring more exports with smaller capital. Small and medium-sized enterprises will not bring a lot of capital, and the technology of small and medium-sized enterprises may not be the most advanced technology in the world, but it may be a technology that is especially needed by developing countries. Developing countries do not necessarily need the most advanced technology in the world. Technology may not adapt to them, and the technology that Chinese private enterprises bring out will be more suitable for the needs of these developing countries. Move these equipment to other developing countries and continue production. Therefore, the investment of SMEs is very low, but the return may be relatively high. This is the advantage of SMEs.
Of course, there are many disadvantages for SMEs going out. If the ability to resist risks is very poor, the foreign market is not understood, and the financing ability may be poor. At the same time, there may be insufficient influence, and various preferential conditions offered by foreign governments will be less.
How to solve these problems of SMEs going out? In the past, a large number of foreign-funded enterprises invested in China, including many small and medium-sized enterprises. How did they invest in us? One is to get together. It is better for small and medium-sized enterprises to go out, it is better for a group of people to go out, and the upstream and downstream enterprises go out together, so that they have mutual care and influence. It is easier to get preferential policies from the other government. The second is to do your homework in advance and not blindly go out. The so-called homework is to do a lot of research on the other side of the market, so the possibility of going out to succeed will be greater. However, SMEs lack such research capabilities, and we need to develop intermediaries, including foreign consulting companies, to do good market research and market research. Third, we must attract talents, cultivate talents, and dare to attract foreign talents.
Third, go out and have something to do
Go out and know where to go. Many companies want to put their products into the markets of developed countries such as Europe and the United States. If enterprises have such strength, of course, there is nothing wrong with them. However, if you choose to go to the neighboring countries, it may be more suitable for the current domestic hardware grinding enterprises. Because the economic development of ASEAN countries should be half a beat or a shot slower than China, countries that are too poor and too poor can not absorb a large number of Chinese products; countries that are more advanced than ours, the competitiveness of domestic products may not meet their requirements, so It is best to go to the periphery and develop a country that is slower than us. For example, Vietnam, Myanmar, etc., Chinese products should have a good market. At the same time, China and neighboring countries have many economic cooperation agreements, and these economic cooperation agreements will have a great protective effect on Chinese enterprises.
Why should companies go out? Each country has different characteristics. The most fundamental thing is to look at the demand. Why do we encourage some companies to go out? Because we have huge demand, and first, the demand for resources, we do not have so many resources such as oil and iron ore, and we need to seek these resources abroad. Of course, you can buy it directly, but because of the large demand, it may cause very large price changes in the world market. The internationally successful experience is to invest in the host country. When the international market price rises, the income can be obtained through mining, thus reducing the risk.
Another meaning of going out is to promote the further development of exports. From the perspective of exports, we have two major markets, one is a developed country and the other is a developing country. Exports to developed countries are relatively simple, and direct trade is fine. However, the economic growth of developed countries is relatively slow. China must maintain double-digit export growth. If it is not focused on developed countries, it will gradually shift to developing countries. The markets in developing countries are very large and can continue to open up new markets. Some developing countries have relatively fast economic growth and demand growth has been relatively fast. However, entering the developing country market cannot be based solely on trade. Because developing countries are also protecting their own markets. They welcome you to invest there. When you invest, you can bring some parts and technology. They are also willing to use the market for technology and capital. This is a weapon to open up developing countries. China must follow this path to maintain double-digit export growth in the next decade.
4. The government has support policies for going global.
Undoubtedly, small and medium-sized enterprises have an irreplaceable role in increasing employment, promoting economic growth, technological innovation and social harmony and stability, and have important strategic significance for national economic and social development. The Party Central Committee and the State Council have attached great importance to the development of these enterprises, and have introduced a series of fiscal and taxation financial support policies, which have achieved positive results. For example, in the "Opinions of the China Securities Regulatory Commission, China Securities Regulatory Commission, China Securities Regulatory Commission, on the further improvement of financial services for small and medium-sized enterprises," issued in June 2012, it is pointed out that it is necessary to further improve and improve the financial services of small and medium-sized enterprises, expand financing channels, and focus on easing SMEs. Financing difficulties (especially for small businesses). In addition, in order to strengthen the promotion of trade with ASEAN, China and ASEAN have free trade agreements, as well as the Greater Mekong Economic Cooperation Zone Agreement and the Central Asia Cooperation Economic Zone Agreement. In October last year, Premier Li Keqiang pointed out at the China-ASEAN Leaders' Meeting in Brunei capital that the Chinese government attaches great importance to ASEAN and regards ASEAN as the priority direction of neighboring diplomacy. It is willing to actively discuss with the ASEAN countries the signing of a treaty of good-neighborly friendship and cooperation. Committed to maintaining regional peace and stability, deepening the confidence and determination of mutually beneficial cooperation, providing legal and institutional guarantees for China-ASEAN strategic cooperation, and leading the development of bilateral relations.
In fact, the Chinese government has indeed done a lot of fruitful work in helping enterprises go global. For example, the 2014 China Hardware Commodities (Vietnam Ho Chi Minh / Mumbai, India) exhibition co-sponsored by the Guangdong Provincial Trade Promotion Council and the China Association and the Ministry of Commerce's Foreign Trade Development Bureau and other units in 2014 (Bangkok, Thailand) China Brand Commodities Exhibition The Hardware Abrasives Exhibition was recognized and supported by the leaders of the Guangdong Provincial Government as it was an important measure to implement the “going out†strategy of the State and the Guangdong Provincial Government. Participation fees are eligible for return subsidies from the national and provincial governments. Among the exhibitors, the national small and medium-sized enterprises with import and export rights, each booth of each enterprise can enjoy the national small and medium-sized enterprises to develop international market development funds (about 70% of the booth fee), and exhibitors in Guangdong Province can also enjoy Guangdong Province. Develop special subsidies for international markets.
5. Going out of the industry association is promising
As a national development strategy, the “going out†strategy itself determines that it is a systematic project, and its implementation requires the joint role of all relevant forces in society. The “going out†of Chinese enterprises to carry out transnational operations cannot be accomplished solely by relying on their own strength. Apart from the support policies of the state, it is often completed successfully by the cooperation and services of many promotion agencies. Therefore, giving full play to the promotion role of the business associations is of great significance for promoting enterprises to “go globalâ€.
In the mature market economy countries in the West, the quotient (consortium) has become an important part of the comprehensive social and economic governance structure, playing an important role in saving members' transaction costs, maintaining market operation order, enhancing the overall competitiveness of the industry and opening up global markets. The role. The United States and the United States are early free market economy countries. The Chamber of Commerce and Industry plays an important role in economic development, international trade and community development, and is increasingly involved in the political life of the country, playing an interest group. character of.
In China, the Business Association is an organization that communicates with the government and enterprises and plays a role as a bridge. The government needs to implement policies and industry development plans through the business associations; enterprises need to represent the common interests of the industry on behalf of the industry, reflect the reasonable opinions and requirements of the industry to all relevant parties, maintain a good business order, and provide consultation, including consultation. All-round quality service including information, law, etc.
At the same time that a large number of enterprises in China have gone abroad, some enterprises have seriously affected the overall interests of China's countries and industries in order to enter the international market, gain a certain market share, and adopt vicious low-price competition. Such behavior is easily subject to anti-dumping or countervailing lawsuits by importing countries. Therefore, many countries' trade associations coordinate the prices and minimum prices of the industry to protect the reasonable prices of domestic products on the international market. Reduce friction in international trade. China's trade associations should strengthen their work in this area.
It is an important practice of many developed country associations to help companies explore the international market as their important responsibility. In the process of formulating national laws, regulations and policies, the Association can play these roles in helping companies conduct market research, conduct investment risk analysis, and develop export plans.
Through careful organization and reasonable coordination, the Association helps and supports qualified and powerful enterprises to go abroad and participate in international economic cooperation on a larger scale and in a deeper degree. Through coordination, strengthen cooperation between enterprises, and jointly compete with foreign companies to effectively help enterprises explore the international market. While helping members to deeply develop existing major markets, we will try our best to expand new markets and truly diversify the market.
Service is the foundation of the association. Only when the service is in place and makes a difference can the association have authority. The association should enhance service awareness, expand the scope of services, strengthen the functions of consulting, information and training services, and address the actual needs of members as the top priority of service content. Accelerate the establishment of an information service network, provide enterprises with political, economic and other investment environments in various countries, local investment procedures, policies and regulations, contract forms and other basic information, and provide services such as introducing partners and cooperation projects. Accelerate the establishment and improvement of the service system related to “going outâ€, and provide various services for the general membership enterprises to explore the international market.
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