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Zhuang Congsheng: legal risk to obstruct the development of enterprises overseas

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"Along the way," the international think tank summit held in Beijing in December 11, 2015. President Zhuang Congsheng attended the meeting and speech, former vice chairman of the National Federation, Chinese private economy research association.
Zhuang Congsheng introduced the basic situation of private enterprises to participate in the "along the way". In Zhuang Congsheng seems, since the reform and opening up, especially after the financial crisis, along with the rising cost of domestic factors of production, increasing the pressure of the business, private enterprises to become bigger and stronger, especially to make multinational enterprises, naturally throw the vision to go abroad, many enterprises in the countries along the way have a lot of investment.
Zhuang Congsheng said that due to the private enterprises to participate in "along the way" construction is still in the initial stage, mostly spontaneous, fragmented, fragmentation, basically one foot deep shallow one foot, investment blindly, the risk awareness and the ability to control the weak "," they have made a lot of tuition, many painful lessons, overall also accumulated some experience ".
Zhuang Congsheng will be "along the way" development summary for the six models. First, through overseas investment projects to circumvent trade barriers, reduce costs, transfer capacity, to obtain competitive advantage. Many manufacturing enterprises, especially labor-intensive manufacturing enterprises, facing a lot of pressure, through the overseas factories, to the "along the way" to build a new living space, some of the advantages of private enterprises, is to transfer excess capacity through the sea, and get a new.
Second, through the establishment of industrial parks and open trade zone, so that more enterprises to go out, to participate in the "along the way". This is private enterprises to participate in the "along the way" the most form to build industrial park enterprises Baotuan go, to overseas to open trade, at the same time, China's merchandise sales to overseas.
Third, through overseas mergers and acquisitions, cooperation and restructuring, access to technology, management and other factors, to enhance the competitiveness of enterprises. This is the way of restructuring and mergers and acquisitions, there are rich and advanced overseas resources and advanced technology, to join China, has brought China's enterprise capital is relatively more advantages. Now to the construction of overseas enterprises, private enterprises through the "along the way" to the rapid development of a corner overtaking a very important path.
Fourth, through the overseas access to scarce resources, direct supply of overseas related industries, expanding business development space.
Fifth, the use of funds to overseas acquisitions, access to greater development space, to play their own brand.
Sixth, the establishment of business, driven by the construction of foreign projects and labor cooperation, driven by construction.
Zhuang Congsheng said, a lot of private enterprises in overseas business and in the country is completely different, with the time and energy to much more, mainly summarized in foreign countries have five risks. Foreign five major risks, the first is the risk of political, "along the way" a lot of target countries, most people know that Southeast Asia, East Asia, West Asia, South America, Africa are relatively similar, these countries are political instability, and some of the more serious corruption, corporate investment risk is relatively large.
Second is diplomatic risk, "along the way" in some countries there are some disputes, spread to the economic losses in these countries.
Third, legal risk, which is the private enterprise to reflect the most intense, the market risk is mainly from the legal risk, many companies are often subject to legal constraints.
Fourth, the risk of exchange rate. China's sustained economic development in recent years, the RMB (6.4752, -0.0026, -0.04%) is relatively strong, Southeast Asia, many countries in Europe's economic fluctuations, the renminbi has some devaluation, resulting in a lot of companies involved in the along the way, the money is now shrinking.
Fifth, the risk of culture, some enterprises in the domestic practice is simply to apply to the international market, has been a lot of frustration. In foreign countries, due to the ethnic, cultural, language and customs, such as a lot of different places, such as a meeting point, must be integrated into the local customs.
On the domestic existence of these problems, we have to do a special reflection of the above, the relevant departments are also being studied, because of the time, I can only simply introduce here.
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