Research On Risk Management Of Multinational Operation Of China's Equipment Manufacturing Industry

Equipment manufacturing industry is an important industrial pillar of national economic and social development and one of the core industries of manufacturing industry.Whether a country's equipment manufacturing industry has competitive advantages and independent production capabilities is an important indicator of a country's overall strength.With the "One Belt One Road" strategy and the "Made in China 2025" strategy.Chinese manufacturing industry ushered in an unprecedented opportunity for development.Many good companies have started to "go out." Take 2016 as an example.Data show that in 16 years China's total foreign non-financial investment amounted to US$170.11 billion,an increase of 44.1% over 15 years.Among them,China's foreign investment in manufacturing reached 29.05 billion U.S.dollars,an increase of 45.3% year-on-year.The proportion of total foreign investment increased from 12.2% in 15 years to 18.4%,and the development trend was rapid.The equipment manufacturing industry has also maintained high growth in foreign investment.Cross-border M&A investment cases have occurred from time to time.However,with the increasing increase of foreign investment in equipment manufacturing enterprises and the normalization of transnational operations,due to the lack of experience and management capabilities of multinational operations,there is a lack of research on the external environment factors such as political laws,market environment,and social customs of the host country.It is impossible to correctly identify and analyze the risks faced by companies in transnational operations.This has brought uncertainties to the multinational operations of equipment manufacturing companies,and is likely to cause huge losses.Under the new situation,while increasing the foreign investment,the company should also establish a transnational business risk management system as soon as possible to prevent risks and make the company's multinational operations more stable.This paper analyzes the related theories of predecessors' management of transnational operations risks in equipment manufacturing industry,and analyzes the importance of multinational management of equipment manufacturing enterprises.Then,starting from the internal and external environment,it identifies and studies the risk factors of multinational operations of equipment manufacturing companies,screens the risks of transnational operations and selects typical risk indicators,combining AHP method and BP artificial neural network method.Two methods have been adopted to build a multinational management risk management system for equipment manufacturing companies.Next,taking the acquisition of Swiss Syngenta by China National Chemicals as an example,the operation-built system assesses the risks of the project's transnational operations and proposes corresponding management strategies.Finally,According to the research in this paper,some risk prevention measures such as the implementation of localization strategies and the establishment of talent cultivation mechanisms are proposed.