Myth 1: "Going out" must be promoted by the government.
Is it necessary for the government to actively promote enterprises to "go global" so as to speed up the pace of transnational operation, continuously expand foreign investment and establish their own multinational companies in China as soon as possible?
Professor Zhang said that this "government-driven theory" not only emphasizes the construction of foreign investment system, but also promotes the government's management function of foreign investment to the influence and intervention of enterprise management behavior, giving "going out" an undue administrative instruction color. The main body of "going out" is enterprises, and the government, as the administrative department of the public, has the responsibility to create a good policy environment for enterprises and provide necessary information services, and must never "take over" and deviate from the track.
Myth 2: We must "go out" under the general trend of globalization.
Professor Zhang said that there is a market for this kind of thinking now. They all believe that the essence of economic globalization is the redistribution of production factors on a global scale, so enterprises must conduct transnational operations to find and open up markets on a global scale.
In fact, whether or not to "go out" and when to "go out" depends entirely on the survival state of the enterprise and its own development needs. The essence of an enterprise is to pursue economic interests, and all production and business activities are carried out around this essence. Enterprises know better than anyone where it is profitable. The outside world is really wonderful. Even if they take risks, driven by interests, enterprises will not hesitate to "go out". On the other hand, the expected return is low or not worth the loss. Even if you catch up with a stick, the enterprise can't get out.
Myth 3: It must be promoted through financial and other measures.
Many countries have measures to promote foreign investment, and China has also introduced a series of fiscal and financial incentives in recent years. But is the correlation between promotion measures and foreign investment really high? Professor Zhang believes that foreign investment is a spontaneous business behavior of enterprises in pursuit of interests, and promotion measures are only auxiliary conditions for "going out", not necessary conditions or decisive factors. Really mature entrepreneurs will not take risks with their hard-working enterprises because of a little promotion measures.
Myth 4: planning and theoretical discussion are often carried out.
The administrative departments make development plans and scientific research institutions hold seminars, making "going out" a hot topic ... In view of these phenomena, Professor Zhang said that government planning can only be used as a reference for enterprise decision-making after all. It is a bookishness mistake to approve foreign capital if it meets the plan, but not if it does not.
Professor Zhang said that the number of foreign-invested enterprises in a southeast coastal province far exceeds the government statistics, because many enterprises do not go through the government approval procedures at all, but adopt other ways to invest abroad. It is roughly estimated that the number of overseas enterprises not listed in this province is more than twice that approved by the government. According to enterprises, there are two main reasons for avoiding government approval: First, the approval process is cumbersome and delays business opportunities. Second, if approved, a series of follow-up matters will follow, such as submitting overseas investment statistics, participating in the joint annual inspection of overseas investment, and comprehensive performance evaluation, which makes many enterprises feel cumbersome. Looking at it from another angle, enterprises outside the list did not enjoy the benefits of foreign investment promotion measures at all, but they also "went out" in large numbers.
There are five conditions for going out.
Professor Zhang believes that "going out" puts forward higher requirements for the strength and quality of enterprises and entrepreneurs, and should at least meet the following five conditions:
Outstanding main business and strong core competitiveness. Enterprises should have unique patents, proprietary technologies or brands, management skills, etc. , and the technical and economic indicators of core business should be more competitive than domestic and foreign competitors;
Clarify property rights and responsibilities. The incentive and restraint mechanism of property rights is sound, with a good corporate governance structure and a strict and prudent decision-making mechanism;
Enterprise strategy is mature and clear. Investing in overseas projects should be a core business or a vertical extension business, or it can obtain an international marketing network, or it can make up for the lack of technical development capabilities and has the advantage of internalizing it;
Good enterprise management, strict financial system, sound supervision system and high credit rating;
The leading team has a global vision and a team familiar with international operations.