The Research Of Government Function Orientation In The Process Of Overcapacity Industry Implementing "Go Out"Strategy

Since the reform and opening up, China’s economy has grown rapidly and the comprehensive national strength has been enhanced. However, with the rapid development of the economy, the problem of overcapacity has existed for a long time. Especially after2008, by the worsening global financial crisis and growing debt crisis, overseas markets’ demand emerged sustained downturn, making China’s export oriented economy has been hitherto unknown attack. The significant downturn in foreign trade made the domestic economy growth appear obvious signs of slowing down, and also intensify the domestic problems of overcapacity. September26,2009, the State Council pointed out that the industries of iron and steel, cement, plate glass, coal chemical, coal chemical, polysilicon and electrolytic aluminum, shipbuilding, soybean crushing exists the problem of overcapacity. At the same time, the financial crisis has accelerated the re-shuffling process of the pattern of the world economic. The relative economic position of tradition developed countries became weak, and the emerging and developing economies has become increasingly prominent.Therefore, in the dual context of domestic development mode transformation and the world economic structure adjustment, promoting domestic industries with overcapacity by "go out" strategy, making full use of both domestic and foreign markets and resources, enhancing corporate level of international operations are helpful not only in obtaining advanced technology and natural resources, bypassing the barriers of trade protectionism, but also curbing the overcapacity problem and upgrading the industrial structure.Since the implementation of the "go out" strategy, China has made significant progress and achievements, especially foreign direct investment flows and stocks are among the highest in the world. But for the overcapacity industry, the process of "go out" still exist many problems and difficulties, such as the small size of the overall investment, unreasonable investment structure, single investment and low success rate of foreign direct investment. In the process of "going out", it involves different sovereign countries or economies, and exchanges and integration between different cultures and peoples.Many of them are beyond the ability of the companies, increasing the operating costs of enterprises, and improve the enterprises’risk of "go out". At the same time,"going out" is not a simple competition between enterprises, but also reflects the strength of the countries, so from both the micro level or macro level, the implementation of the "go out" strategy requires the government to formulate the relevant national strategies, laws, regulations and preferential policies.and provide efficient and quality service and supervision to encourage and support enterprises to achieve globalization and internationalization. But in economic activity our government still retains the past planned economy shadow,so it has serious function "offside" and "vacancy" problems in the "going out" process of the overcapacity industries.It is one of the reasons for the small size of the overall investment, unreasonable investment structure, single investment and low success rate of foreign direct investment. Therefore, this paper study the "offside" and "absence" of government functions and positioning by the analysis of the status quo, and made relevant recommendations.The innovation of this paper is introducing the the problem of governmental function to the study of foreign direct investment in industries with overcapacity. Because of facing the serious problem of overcapacity and international trade protectionism,"go out" is crucial for the overcapacity industries. As the the macro main body in the process of "going out", having an accurate and clear understanding of position and functions of our government is critical influence on the healthy development of foreign direct investment in industries with overcapacity, so from this perspective, this study has some practical significanceand value. The lack of this paper is that it is hard to find the related foreign direct investment data of overcapacity industries. So there is no mathematical analysis to supporte the relevant conclusions of the article. To some extent, it affects the integrity of the article and convincing.The first part is the introduction. It discusses the research background, the content of the article as well as innovative and shortcomings. The second part describes the concepts of overcapacity,"go out" and government functions and positioning as well as the current research status. The third part of the article describes the theoretical basis of the overcapacity industries to go out, and the need for domestic industries with overcapacity to go out from the country, industry and enterprise level. The fourth part describes the status of the process of "going out" of overcapacity industries including the scale of investment, the investment structure, investment and the success rate of investment. The fifth part analyzes the problems of "offside" and "absence" of government function in the process of "going out" of overcapacity. The last part of the article makes relevant suggestions to solve the above problems from the five aspects.