The biggest challenge of Chinese enterprises overseas
According to the study by the salon host and Professor Li Jing of the Canadian SFU business school, there have been many successful cases of Chinese investment in Africa and South America over the past decade. However, after Chinese enterprises enter the European and American markets, especially in the United States and Canada, they often end up in trouble or lose their blood. Why do Chinese enterprises enter the European and American society with perfect regulations and mature markets, but they are staggering and difficult? This is a question worth thinking deeply.
At the beginning of salon, Li Jing, the host, threw a topic, hoping that the guests would talk about the biggest challenge facing Chinese enterprises when they went overseas. “In my view, when Chinese companies come to overseas, the biggest challenge is that they don’t know what challenges they face, or disagree with the challenges they face, and still look at and solve these challenges with successful domestic thinking.” Li Shilin, former chief executive officer of Eldorado Gold Corp China and CEO of sire Wen Chi Hong, said.
Two executives from Chinese enterprises are impressed by the strangeness of Chinese enterprises overseas. Frank of neutralization investment company said that the biggest challenge for Chinese enterprises to come to overseas is unfamiliar with life. In a short time, it is difficult to obtain social license (SOCIAL license) and lack the opportunity to expand the space. MS Ren, from Canada’s financial industry, agrees. She said that when Chinese enterprises started to venture overseas, they were just like an immigrant who knew nothing about the state of their country. She came to Canada for many years, but still can not grasp the local social pulse, lack of sense of direction. How to get accurate information that you want is a difficult problem for Chinese funded enterprises overseas. In fact, when many companies just came overseas, they didn’t know where to get information, “she said.
However, Frank and Ms. Ren pointed out that Chinese enterprises must pay a certain amount of time and cost to go overseas. This is an inevitable process. Over the past decade, overseas Chinese funded enterprises have gone through the stage of “two eyes and one touch” and become more cautious and rational. Internationalization of Chinese enterprises requires knowledge, experience and accumulation of talents from generation to generation in order to achieve qualitative breakthroughs.
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Post time: Jun-21-2018