Research On Cross Border Investment Strategy Of YW Company Under The Sino-US Trade Conflict

In recent years,China has become the world’s largest manufacturing country,however,"Large but not strong" is still the most urgent problem to be solved during the development of Chinese manufacturing industry.Chinese manufacturing industry is still strongly constrained by many factors such as poor independent innovation capacity,low value product chain,low production efficiency,irrational industrial structure,rising labor costs,excess capacity and lack of brand influence.With the escalation of Sino-US trade conflicts,Chinese export-oriented economy has been blocked,which has brought tremendous impact and challenge to Chinese manufacturing industry.In addition,Europe,The United States,Japan and South Korea and many other developed countries have imposed stronger export restrictions and embargoes on export of chips,materials,photolithography machines and other core advanced technologies for China,resulting in a huge hit to the development of Chinses manufacturing industry,especially in semiconductor,new materials,new energy vehicles and other high-tech industries,and even in a "Strangle" situation.Developed countries,represented by the United States,impose heavy restrictions on Chinese talents returning to China for entrepreneurship,cooperative R&D and technical exchange between Chinese and overseas commercial entity,which leads to a much more difficult situation for Chinese companies to achieve further development by utilizing advanced overseas technologies and R&D talents.Against the backdrop of Sino-US trade conflicts,the Chinese government has put forward a new pattern of "Dual circulation" strategy and which gives new requirements for China’s economic growth mode.Therefore,it is of practical significance to study the high-quality development of China’s manufacturing industry under the background of domestic and overseas severe challenges.The research presented focus on the cross-border investment strategy of manufacturing companies,taking YW company as representation,with the specific investment case analysis,this research considers both theoretical significance and practicability.This study discusses the "Going global" cross-border investment strategy such as setting up factories overseas and R&D centers in Chinese manufacturing industry,and then"Bringing in" strategy of introducing advanced technology and talents,as well as the overseas mergers and acquisitions,and by which the manufacturing company has achieved rapid development in industrial expansion and industrial chain layout,and promoted the transformation and upgrading.With the "Going global" and "Bringing in" cross-border investment strategy,Chinese enterprises are abled to avoid high tariff costs and embargo risks brought by trade friction,and seize international market opportunities;achieve technology cooperation with foreign enterprises,universities,and research institutes to fill the technological gaps;introduce technical teams,core products and advanced technologies in related fields into China and solve the "Strangle" problem efficiently.Cross-border investment strategy could enhance the core competitiveness of enterprises,realize professional,diversified,and global development,which would promote the transformation and upgrading of enterprises.Especially during the Sino-US trade conflicts,cross-border investment could be a shortcut for enterprises to break through development bottlenecks.Meanwhile,for further promote the core competitiveness of small and middles enterprises of specialization,refinement,differentiation and innovation,besides strengthen the enterprise internal innovation and supporting policies from the government,it is recommended to further encourage enterprises’ overseas investment.In this case,Chinese manufacturing company would accelerate the progress of transformation and upgrading,and would further promote high-quality development of Chinese emerging industries.