Quanzhou Private Enterprises Seek Survival Through "Going Out" Cracks

< p > < strong > layout overseas < /strong > /p >

< p > Quanzhou, as a major town of China's private economy, in recent years, the layout of enterprises overseas has shown a trend of steady progress. Overseas investment has exceeded one hundred million US dollars.

The strong private economy, represented by < a target= "_blank" href= "//www.sjfzxm.com/" > textile > /a > a target= "_blank" href= "//www.sjfzxm.com/" > shoes > clothing, plumbing and building materials, is very eye-catching in overseas.

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At present, the annual export value of stone materials in Quanzhou is more than US $one billion, and the main products are exported to Japan, Korea, the European Union, the United States, Southeast Asia and Taiwan, China.

Now, in order to further expand exports and save costs, a large number of enterprises have entered the strategic development stage of joint venture mining.

The usual practice is to qualify for local mine development.

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< p > Ming Chao Shi Co., Ltd., in cooperation with local Chinese people in Philippines, mining raw materials can not only be supplied to the company, but also to their counterparts in the wholesale market. The Nanan loyal stone industry has been successfully settled in Tanzania and Kenya, mining rich mineral resources in the African continent.

Hui Wen Stone Co., Ltd. will set up stone mining and processing enterprises in Morocco, with the first investment of US $30 million.

5 years later, the total investment of Hui Wen Stone Co., Ltd. will reach US $50 million, and it is expected to solve the employment of 2000 people in the region. It can provide us $20 million in taxes, business management fees and mining fees every year.

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"P" earlier, some raw materials and markets "two out of" stone processing enterprises, chose to move technology and capital to overseas practices, to other stone enterprises to provide a demonstration.

Enterprises in foreign countries, especially in the origin of stone, direct investment in the establishment of processing enterprises, not only can avoid the impact of the policy, but also may enjoy the local export tax incentives.

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Similarly, Quanzhou's textile shoes and clothing also accelerated the pace of overseas marching.

Many key enterprises such as plum umbrella industry, xunxing zipper, Jordan shoes industry have set up marketing outlets or investment development in Europe, Australia and the Middle East.

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< p > under the backdrop of the global resource price rise, some Quanzhou enterprises with keen investment sense of smell have begun investing overseas to acquire resources.

Quanzhou Tenglong coal company was originally a domestic trade enterprise engaged in domestic coal business in Jinjiang. In the past few years, the company went to Indonesia to acquire coal mines.

"Compared to the original domestic coal purchase and sale, after the acquisition of Indonesian coal mine, the profit of coal pportation from Indonesia to China has increased by 60%, and the investment is very successful indeed."

Xiao Wencong, deputy general manager of the company.

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Setting up factories outside P is also conducive to breaking through increasingly stringent trade barriers in Europe and America.

A children's clothing company in Shishi has set up a branch factory in Argentina. The market economy status of Argentina has been widely recognized in Europe and the United States. The company effectively avoids the anti-dumping and high tariffs imposed by many European and American countries on "made in China".

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< p > < strong > adapting to new soil and water > /strong > /p >

< p > experts predict that under the influence of comprehensive factors such as RMB appreciation and overseas investment cost, the field of foreign investment will expand from trade to production and operation. Through overseas production and processing, the overseas processing trade of raw materials and equipment exported from Quanzhou will gradually become a trend of overseas investment of Quanzhou Enterprises. Investment will focus on textile, < a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a >, footwear, food, stone, handicrafts and other industries.

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< p > in order to break the monopoly of purchasing and pricing power of European and American businessmen, set up offices - establishing trading companies - building processing plants, which is a trilogy of overseas investment of Quanzhou enterprises. Although some individual enterprises have successfully passed the trilogy, Quanzhou's enterprises' outbound investment is still in its infancy.

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< p > relying on the development of manufacturing industry, the private economy in Quanzhou lacks the knowledge of laws and regulations related to overseas investment to a certain extent. It lacks information, knowledge and experience on overseas investment and lacks compound international talents, which greatly limits the pace of "going out" of Quanzhou enterprises.

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< p > in the case of possible changes in the hot spots and modes of investment, the analysis report of Quanzhou foreign trade and Economic Cooperation Bureau also pointed out the opportunities for Quanzhou enterprises to invest abroad.

To grasp the opportunity of foreign technology, equipment and enterprises being cheap, holding shares, acquiring and merging, venture capital, high-tech research and development, and directly setting up factories abroad should be an important choice for leading enterprises in Quanzhou to March overseas.

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< p > we must carry out sufficient pre research for overseas investment, and enterprises must have corresponding personnel equipment, which is a great challenge for Quanzhou stone enterprises.

However, the experience accumulated by enterprises going out earlier can drive more large scale enterprises to go out.

In the future, the pfer of processing plants to overseas countries is likely to become the choice of more and more Quanzhou processing enterprises.

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< p > < strong > > go to sea > /strong > /p >

< p > recently, many well-known Housing enterprises "get together" to join the "sea going" team, and have invested heavily in the acquisition and construction of overseas real estate projects.

Data from China overseas investment Federation show that since 2012, more than ten large housing companies including Biguiyuan, China Construction, China railway construction, Vanke, and Greenland have overseas real estate projects or investment plans, and the scale of investment has reached tens of billions of dollars.

After a series of overseas layout in 2012, the mainland's housing enterprises after "sea going" gradually welcomed the harvest period.

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< p > the first stop of the Vanke "sea going" of housing companies is choosing the obvious US housing market this year.

In February of this year, Vanke announced the establishment of a joint venture with the American lion lion real estate company to jointly develop the 201 block of Fu Sheng street, San Francisco.

Just two months later, Vanke moved to Singapore and invested 678 million yuan through its subsidiaries to buy Jibao's project in Lin's pavilion in Eastern Denmark.

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< p > Greenland Group's development is more radical. The company has arranged more than ten projects in Jeju Island, Sydney, Germany, Frankfurt, Spain, Madrid, Barcelona, Losangeles, Thailand and other places in the Republic of Korea. The company expects to invest nearly 20 billion yuan in overseas projects within the year, and become the largest and most domestic real estate enterprises in overseas business.

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< p > CITIC Group's overseas assets at the end of 2010 were 362 billion 600 million yuan, and overseas income was 112 billion 500 million yuan.

By the end of 2012, CITIC Group's overseas assets had dropped to 297 billion 800 million, while overseas income dropped sharply to 60 billion 270 million.

At the end of 2010, Chellona Mobile Communications Corporation Cmcc had 22 billion 300 million yuan in overseas assets and 7 billion 200 million yuan in overseas income.

By the end of 2012, overseas assets expanded to 24 billion 780 million, but overseas revenues dropped to 4 billion 600 million.

At the end of 2010, China Metallurgical Group achieved 30 billion 800 million overseas assets and 18 billion 700 million overseas income.

By the end of 2012, its overseas assets expanded to 36 billion 500 million, but its overseas income dropped to 9 billion 200 million.

Overseas assets grew by 6 billion, while revenue declined by half.

At the end of 2010, Sinosteel had 30 billion 800 million overseas assets and 42 billion 200 million overseas income. By the end of 2012, Sinosteel had disappeared directly from the list of the 100 largest Chinese multinationals.

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< p > Chinese enterprises have gained a lot from the scale of assets in the past ten years, but the lesson of failure is more than that of successful experience.

Take the field of mineral resources that Chinese enterprises have invested most frequently in recent years, for example, although it has been acquired, most of the projects will take a long time to do further exploration, scientific research and infrastructure construction.

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< p > < strong > know one's own knowledge, < /strong > < /p >

< p > the fundamental reason for the failure of overseas investment of central enterprises lies in the mechanism of the central enterprises themselves.

Generally speaking, overseas investment needs to be carefully decided, but the will of the governor and the pursuit of short-term achievements will not only lead to imperfect internal decision-making process, but also lead to a waste or even loss of state-owned assets, but the responsibility for afterwards is not enough.

An unnamed central business executive said that the amount of pactions going out by the central enterprises would be billions of billions, often facing great risks.

Inadequate investment in early stage, unreasonable decision making, inflexible coping mechanism, and lack of effective supervision and restriction are prominent issues.

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Beyond P, behind the overseas tour, the market faced by these investors and < a href= "//www.sjfzxm.com/news/list.aspx ClassId=101112110107" > policy < /a > risks should not be underestimated.

In particular, with the increase in the size of overseas property buyers, once the policy tightens up to limit the outflow of capital, overseas property buyers will inevitably be hit, and the development of overseas businesses of Chinese enterprises will also be seriously threatened.

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< p > layout overseas market needs sufficient cash flow or financing channels to support.

In May last year, Dalian Wanda signed a merger agreement with AMC, the world's second largest group, and the total paction amount of Wanda's acquisition amounted to US $2 billion 600 million.

Without the support of the Bank of China, BOC and China's import and export bank, Wanda might also be very difficult to play its role in the international arena.

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< p > according to the analysis of the 100 largest multinational companies in China by the China Federation of enterprises, the risk of pnational investment encountered by Chinese enterprises after going out has increased significantly in recent years.

Although M & A is the main way of pnational investment, international experience shows that the probability of successful cross-border M & A is very low.

For China, because of the weak ability of independent innovation and core competitiveness, and lack of experience in managing international brands and marketing channels, the risk of cross-border mergers and acquisitions is greater.

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