China's Overseas Investment For Smes Countermeasures

Since our country's reform and opening up, more and more companies make overseas investment and multinational management. But large enterprises have been paid close attention. In fact many little and medium-sized enterprises make use of their technology, products and other comparatively advantages to take part in multinational investment. They don't get proper treatment because of little investment scale led by their own economic strength. In view of the experience that the enterprises of developed countries deal with overseas investment, the transformation from large enterprises playing an important role to little and medium-sized enterprises is helpful to improvement of international competition for one country. The development of little and medium-sized enterprises increases the liquidity of the capital and stimulates the whole world' s economy. China's entrance to WTO will accelerate the liquidity of the capital. As foreign capital is attracted, external export of the capital will be enlarged. For little and medium-sized enterprises, overseas investment not only conform to the fashion of market and capital internationalization but also ease up the competitive pressure in local market. That is very fundamental for little and medium-sized enterprises accounting for 99% of all the companies and growth of China economy.The representative theories of multinational management of developing countries such as the Theory of Investment Development Cycle, the Theory of Little Scale Technology, the Theory of Technology Locality, the Theory of Technology Innovation and Industry Upgrade, prove the possibility of overseas investment for little and medium-sized enterprises of developing countries. Traditional international direct investment theories consisting of the Theory of Product Life Cycle, the Eclectic Theory of International Production and the Theory of Investment Factors Constitution, support little and medium-sized enterprises of our country to invest overseas in theory. The main motive of overseas investment for little and medium-sized enterprises of our countries arecomplying with the market, complying with technology and management, looking for new management opportunities, complying with favorable policies, elaborating advantages.Overseas investment of little and medium-sized enterprises of our countries are in first stage. There must be many overseas, inner, macroscopical and microcosmic problems. When little and medium-sized enterprises deal with overseas financing, they will meet many difficulties such as weak financing abilities, lack of touch with multinational banks of our countries, the lag of enterprise management and operation system shunt. At the same time their internal management exerts some problems involving blindfold investment, lack of technology advantages, weak innovation abilities, few international famous brands, short of capital and deficient talents. Under such background, little and medium-sized enterprises should choose relevant evolution strategy according to their own trait and strength in order to success in the international market. As surviving strategy, production and operation of little and medium-sized enterprises should look for "market gap" and open up professional market. As strategy of entering into international market, production and operation system of little and medium-sized enterprises should adopt gradually accessing. As developing strategy, little and medium-sized enterprises should positively and cautiously invest. As financing strategy, little and medium-sized enterprises should adjust measures to local conditions by advanced financing means. At the same time the government of our country also develop our own overseas financing institutions to create objective conditions for oversea investment of little and medium-sized enterprises.Under market economic circumstances, the macroscopical strategy and policies of the government have only directive effect. But that can't take place of their own decisions and administration. When little and...