Study On The Problems And Counter-measures To Multinational Operation Of Chinese Enterprises

As the economic communication between countries goes further, the economic globalization has enabled enterprises to break through territorial confines to scheme resources, organize production and marketing through out the world. The enterprises in our country would just survive only by joining the globalization, taking part in the international competition and cooperation utilizing foreign and domestic resources and markets, and running business worldwide.The multinational business operation came in the walk of China's economic reform and opening to the world. By investigation into the sizes, principals, areas, industries, and modes of our multinationals' investment, this thesis finds out our multinationals' achievement together with problems of small sizes and quantities, improper structure of investment, few investing modes, lacking finance, and low investment income. The causes of those problems are as follows: (1) causes in macro-management: the lagging-behind of the economic sygtem reform, the babuism in managing investment, and the absence of government's guidance. (2) causes in micro-management: lacking thoughts of going worldwide and strategy, deficiency in managing system, insufficient research in decision-making of investment, lacking comparative advantages and senior business talents.Due to these problems, some scholars in the country think that we are not on a position to develop external investment, and shall concentrate on introduction of foreign capital, which is not agreed by this thesis for one-sideness. Multinational operation is not a patent of developed countries, and our enterprises with certain comparative advantages are totally qualified to conduct external investment and build up their dominance through multinational operation. The comparative advantages of Chinese enterprises lie on labor cost, traditional products, some techniques, etc. Our multinationals shall choose the right projects, markets, and investing modes for optimal benefits according to their comparative advantages. Therefore, the strategic choice of principals for our multinational operation should be private enterprises of certain size with good reputation and state-owned enterprises with clear property right, which are able to pass the gate of lowest investment limit set by the invested countries without losing national assets. Their flexible operating system could cope well with the complicated foreign markets and ensure success overseas. The strategic choice of areasshould be developing countries, especially East Asia and Southeast Asian countries and regions at the beginning, then the developed countries, Russia, east-European countries, and other regions. The guidance of the strategy is to enter with major direction the international market by investing and divide the strategic levels and positions of different areas. The strategic choice of industry: resource exploitation industries are the defending part for our multinationals, industries combining labor and capital are the foundation, research and technology industries are the important part, and service industry is the dominant part. As to the strategic choice of investing modes, the Chinese enterprises shall deploy Tactic Alliance and Transnational Merger.After analyzing the problems and their causes in our multinational operation and referring to the experience of foreign multinationals, some countermeasures are recommended for the development of our multinationals according to the situation and economic development strategy of China. The government shall conduct innovation of system and mechanism, and urge our enterprises to go to the world: (1) to change the traditional concepts and strengthen the understanding of multinational operation; (2) to improve the managing system of enterprises' overseas investing; (3) to constitute and better the laws and regulations concerning external investing, (4) to strengthen information development and guide the multinational operation; (5) to make policies in favor of giant enterprises, and help them go world...