Research On Legal Problems Of Promoting Small And Medium Enterprises' Abroad Investment

Ten years ago, in 1999, China was witnessing an ongoing economic transformation, with the people there looking forward to the world and Chinese products rushing into the international markets. Western mainstream media and the masses are arguing over what kind of impact China's accession to the WTO will bring to the world, but China has become an integral part of the world economy, the theory of Chinese threat began to spread worldwide. Twelve years later, China has completed the transition of WTO economic system, the people has been confident of the economic, trade, investment power. Western mainstream media and public opinion for the reshuffle after the financial crisis in the international economic system was to re-examine China, since China has become the engine which drives world economic recovery, China threat theory and the savior of China have existed in parallel, but the latter seem to prevail. With the rise of the Chinese economy, the historical mission of the Group of Seven to dominate the international economy for decades is about to end, China has become a key element of the new international economic system, which is both a challenge and an opportunity. This comes suddenly to international investment. China's manufacturing sector based on the real economy and financial reserves have changed the flow of international investment. China is changing the strategy from absorbing foreign investment to investing overseas. Harboring the global ambitions, Chinese companies begin to launch large-scale overseas mergers and acquisitions, and trying to realize their industies'overseas transfer by overseas investment. As a world factory, China's huge demand for energy and other resources urges Chinese enterprises to use huge amounts of money to seek overseas energy resources. China's large enterprises to invest abroad have their inherent advantages:financial strength, policy orientation, national legislative support. However, the overseas investment of SMEs are meeting with obstacles, in the face of already saturated domestic market, SMEs must also invest abroad to maintain its own development. However, SMEs are weak in itself, with a serious shortage of funds, as well as inadequate national laws, obstacles set up by policy environments, all of those make it difficult for SMEs to invest abroad. This is obviously contrary to the direction of our existing economic development and'"going out" strategy. China's legal protection of SMEs on the overseas investment is not very sound and the encouraging policy is not perfect, and even in some areas is blank, this makes the overseas interests of SMEs in China is difficult to be effective protected, causing SMEs'enthusiasm to invest abroad greatly reduced.In particular, overseas investment of SMEs in China face legal obstacles and difficulties in the following areas:overseas investment legislation on the small and medium enterprises is confused, delayed and lack of authority; domestic and international laws on the overseas investment are lack of convergence and fully utilization; overseas investment insurance mechanism is not perfect; the absence of small and medium enterprises overseas investment regulatory regime; the current financing system is not conducive to foreign investment and financing of SMEs; there is lack of attention to small and medium foreign investors in legislations.The existence of legal obstacles and the difficulties of SMEs in China has seriously affected the enthusiasm of overseas investment, which is not conducive to SMEs development and growth, weakening our company's competitiveness in overseas markets, as well as inhibiting China's "going out" strategy to achieve the smooth. Reviewing the world practice, both the developed capitalist countries and developing countries encourage and promote their small and medium enterprises to go out for overseas investment and achieve the leading place in international market. In the domestic legal system of each country? there is legislation which promotes SMEs to invest abroad, and trying to create a good legal and policy environment for the small and medium enterprises to invest abroad. Although China have taken certain measures to promote and encourage foreign investment for SMEs, our legislative system in this regard is still very imperfect and there are many obstacles, so legislation lags far behind the real needs. Therefore, to learn the legislative experience of other advanced countries and strengthen SMEs regulate foreign investment legislation is necessary at the present stage.This article starts from the basic theoretical issues on overseas investment from Chinese SMEs, illustrates the need for SMEs development and the feasibility of overseas investment, aiming at eliminating discrimination against SMEs. Then this article elaborates China's legislation in this respect and legal obstacles and difficulties faced by SMEs to overseas investment. In the further analysis of foreign SMEs in overseas investment on the basis of the legal system, this article also raises some legislative proposals to improve the legal system of China's overseas investment for SMEs, in order to promote overseas investment of SMEs in China and provide a legal system to protect and stimulate the enthusiasm of foreign investment for SMEs to protect the interests of small and medium enterprises overseas.