Risk Analysis Of China’s Equipment Manufacturing Industry Going Out

From the past 30 years, the shift from "bringing in" to "bringing in and going out" was great, which means that "made in China" is becoming stronger and integrated deeply with international market. With "going out" strategy carrying out, especially the "the belt and road", Chinese equipment manufacturing enterprises are pushed to invest foreign countries, accelerating the pace towards the international market. Growth of world economic generally shows a slow recovery tendency and the international division of labor and international cooperation capacity were adjusted, which provides new opportunities for Chinese equipment manufacturing enterprises playing their own advantages in the global allocation of resources.Equipment manufacturing industry is the key industry of a country’s economic and social development of the important pillar industry and its developmental level is the symbol of the country’s comprehensive national strength and competitiveness. And as Chinese competitive industries, equipment manufacturing industry is also the representative of national brand. Promoting International co-production and equipment manufacturing has become the significant strategy to help economic development to adjust economic structure and industry transformation and promotion. In the first quarter of 2015, China’s non-financial companies have invested in 143 nations and regions aross the world, up to 158.36 billion yuan, with an increase of 29.6% than last year. The Chinese equipment manufacturing foreign direct investment continued to maintain growth, reaching 960 million dollars.With the support of government policies and progress on expertise, management and other aspects of equipment manufacturing, more enterprises speed up the process of foreign investment. With the expanding scale of Chinese equipment manufacturing industry going out gradually, the enterprises were faced by a variety of international risk. Because many companies lack the experience on the international business operation about the local laws and regulations, social culture and business environment, resulting in interest is compromised when equipment manufacturing enterprises go out. Therefore the Chinese going-out-enterprises need to identify and avoid international risks effectively and build a sound risk prevention mechanism to protect their interest when invest in the International market.First of all, the paper has explained the present situation of China’s equipment manufacturing industry going out and kind of risk they faced. Then using CRRC as a case to analysis the risk precautionary measures that were taken in the countries and regions where CRRC invested by a fuzzy evaluation method to elaborate that the political risk, intellectual property right risk, exchange rate risk, human resource risk and other risks are faced when CRRC go out and how they deal with those international risks. Finally the effect analysis of risk prevention of CRRC going out and the enlightenment for other enterprises invest aboard was presented. Effective risk prevention measures can minimize the risk, extending the international market share and it is also possible to improve the international competitiveness of enterprises, becoming an important reference for Chinese equipment manufacturing companies to go out.