The Strategic Research On Transnational Operations For Chinese Non-governmental Enterprises

As economic globalization and China's commitment to WTO progress, both the domestic market and foreign market merge together. Against the phenomena of inward EDI far exceeding outward FDI in our country, the Party has drawn up the policy of encouraging more domestic enterprises to expanding their business abroad, stressing on diversified initiatives. Through development of more than twenty years, the non-governmental economy has become an important part of our national economy. Compared with the State-owned enterprises, the non-governmental ones have the edge of relatively clear ownership and flexible institution, thus should become one of the initiatives who are encouraged to go international.The researches on transnational operations that have been done so far focus more on the SOE than non-governmental ones. Against the backdrop of Chinese foreign economy turning to balance inward FDI and outward FDI, as well as the increasingly important role the non-governmental economy has played, research on transnational business for non-governmental enterprises is of great significance, both for the next booming of non-governmental economy as well as the prosperity of the whole China. Focusing on non-governmental enterprises, especially of the private ones, in combination of some successful examples, this paper tries to explore a feasible way for the majority of the non-governmental enterprises who aim to go abroad. 'This paper comprises five parts. The first part explains why this paper chooses such a topic, the goal to achieve and the methods which involves; the second part tries to summarize the causes for non-governmental enterprises to do businessabroad, both theoretic and realistic ones; the third part expounds their pn ^ situation as well as detailed analysis of their strengths and weaknesses for fierce international competition. Based on the above analyses, the fourth part suggests the non-governmental economy should outline a scientific strategy for transnational operations in consideration of their limited resources and competencies, which is to make full use of their relative advantages and create competitive advantages through the way of specialization and professionalism; The last part sums up all the points for a conclusion. ,The way of specialization and professionalism, which in this paper includes products and market segmentation, core technology innovation, management innovation, HR introducing and training adapted for transnational business running. In such way, this paper combines the short-run profit earning and long-run competition for non-governmental enterprises together, which respectively based on present advantage and on the strategy of specification and professionalism, with the latter as the emphasis.