A Study On Starting A New Undertaking Of Nongovernmental Business By Cooperating With Foreign Capital

Nongovernmental business is the most active economic organization in China. Since 90's it has developed rapidly and borne glaring fruits. Nongovernmental business is an important part in Chinese GDP, particularly in Xiaoshan , Zhejiang province where nongovernmental business's size is quite large in site. But, after China became a partner of WTO, these nongovernmental businesses faced a tough environment. Competing with transnational rivals, lack of advanced management and technology , depending on labor-intensive and capital-driven economy too much, scarcity of resource, these businesses have been in hot water. Though many of them had tried in one way or another to innovate, adjust and upgrade industrial structure relying on their own strength, yet continuous development is still very difficult even fruitless for being enslaved to the shortage of human resources , managerial skill, and advanced core technology. In this case, some of them are aware of cooperating not competing with overseas rivals is a win-win solution. More and more nongovernmental businesses have stepped out of the corner via working with foreign partners, and more than ever are joining the trend and looking for would-be comrades all over the world. It is not only an effective way to enhance control level of nongovernmental business, but also a long-sighted and critical help for stability and improvement of local economy. In this paper, there is an exhaustive research on this through vertical analysis and transverse comparability, with some actual examples .The paper consists of a introduction and six parts. Instancing nongovernmental business in Xiaoshan(a county in Zhejiang province, China) a good representative of advanced counties in China, this paper analyzes the difficulties which nongovernmental business is facing, points out the exigency and necessity of starting a new undertaking and figures out a conceivable approach. Comparing location the advantages and disadvantages in consideration of current situation, it emphasizes that cooperation with overseas capital is the best way for both nongovernmental business and local government. And ,the paper also discusses several models of cooperation followed by successful examples, puts forward the essentiality of government's policy and service on cooperation between nongovernmental business and foreign capital, brings out that it is able to reduce over-invested risk of offshore funds through cooperation between nongovernmental business and foreign capital. In consideration of publicity of government, this paper makes an in-depth study on how to boost the cooperation between nongovernmental business and foreign capital. In the end, the paper comes to a conclusion that unfolding cooperation between nongovernmental business and foreign capital is not only the fitting measure to enhance nongovernmental business's competitiveness, but also the certain choice of government.