On China's Private Enterprises To Invest Overseas

In the twenty-first century, globalization of economy has become an irreversible trend. After China joins WTO, the Chinese enterprises are more integrated into the world economy. How to fully utilize the two kinds of markets and resources both domestic and abroad has become a general development requirement of the enterprises, and it also becomes the extrinsic motive for the private-owned enterprises to invest abroad. Moreover, China is now undergoing adjustments of its economy structure and industry structure, Chinese domestic productivity and capital is excessed and the domestic market is saturated, so abroad investment has become a necessary choice of the private-owned enterprises. At the same time, as we can see, most of the private-owned enterprises have the capability of investing abroad, which can be testified by the whole economy base, the industry competition advantages and the development status of the private-owned enterprises. The above is the first part of this article, which is about the inevitability of the private-owned enterprises' investment abroad.The second part of this article put its emphasis on the analysis of the advantages of private-owned enterprises' investment abroad. First, it expatiates the reasons in theory why the private-owned enterprises have advantages in the international competition during the course of investing abroad. Then, the article discusses about the content of private-owned enterprises' competition advantages broadly, including the perspicuity of the property relations, the flexibility of the management mechanism, the advantages of the small-scale technology, the cost advantages and the more perfect abroad market network system. At last, with a verifying survey on private-owned enterprises of Zhe'jiang province, by utilizing the analytical method of quantization, the article fully affirm the private-owned enterprises' ability to absorb the key elements, and the ability to combine, develop and manage resources. And the article also points out some deficiencies.In the third part of the article, inspired by the verifying analysis and combining the on-spot review on private-owned enterprises of Zhe'jiang province, the article sums up the macroscopic and microscopic factors which restrict the private enterprises' investment abroad. Among the microscopic factors, lack of the qualified talents is dominant, and the other problems such as the shortage of investment information and experiences, low industry level, weak consciousness of the brands, and relatively low ability of investment and financing, can't also be ignored. The macroscopic factors include lawmaking behind time, imperfect political system, inflexible foreign exchange control system and the unreasonable structure of financial system, and so on.The fourth part is the center part of the article. It mainly gives some advices on abroad investments by the private enterprises, such as:a) To accelerate the steps of lawmaking related to the investments abroad as soon as possible. b) To give full play to the government's role of macro-management and coordinating, reforming the examine and approve system, improving the insurance systems for investments abroad, fully utilizing the financial means to support the private-owned enterprises' investment abroad. On the other hand, the socialization service system for the small and middle-sized private-owned enterprises should be made perfectly and innovation ability of private-owned enterprises should be cultivated as soon as possible, c) To build up the foreign exchange control system, which is adapted to the need of international market, d) To perfect the financial service system and support the private-owned enterprises' investments abroad, that is to raise the financial institutions' supports for the small and middle-sized private enterprises; to develop the small and middle-sized financial institutions actively which can coordinate well with the private-owned enterprises; to set up multi-polar stock rights investment structure; to perfect the risk inves...