Research On Local Currencies Exchanges Of Chinese Enterprises' Overseas Projects

Since the reform and opening-up to the outside world from year 1978,our country's overseas engineering projects have developed rapidly.Then,the "Go Out"policy has further accelerated the go out pace of Chinese enterprises.At present,in the boost of "One Belt and One Road" policy,Chinese enterprises are being understood and accepted by more and more countries and their international reputation and status improve continuously.However,due to the relatively late start of overseas projects of our enterprises,their experiences of overseas projects are not enough and their developing process often accompanies by problems.The local currencies exchanges in the country where the overseas projects locate are becoming one of the most difficult problems for our overseas enterprises at present time.After transfer of the projects,part of the profits or even all of them are in the form of local currencies,stay in the local currency accounts in the countries where the projects locate and are difficult to be converted into international currency and remitted to China.These amounts of money can be seen,but can't be used.It makes our enterprises suffer great losses.Therefore,it is of great significance for most Chinese enterprises to find a practical and universal method to solve the problem of local currencies exchanges.In order to find a solution to this general problem,this paper makes a comprehensive study of the documents on foreign exchange control and methods of avoiding the control on foreign exchange.It focuses on the methods of avoiding foreign exchange control.On the basis of analyzing the characteristics of overseas engineering projects of our enterprises,this paper puts forward a new financing deduction method to solve the problem by combining reinvestment with financing deduction.After that,this paper takes A company's sugar plant project as an example,and focuses on the feasibility and effectiveness of the method.The basic precondition of the method implementation is that the projects locating countries have the suitable products and resources to be exported outside,and products importers agree to pay the price of the products to the account of Chinese enterprises' parent enterprises in China in accordance with Chinese enterprises' will.The method can be implemented to avoid the local currencies exchanges and realize the goal to make the money back to China if all the parties can reach an agreement.The new financing deduction method presented in this paper is innovative,but deficient.However,I think this method has universal significance.It can provide reference for Chinese enterprises to solve the local currencies exchanges issues of overseas projects and is expected to be used by more and more Chinese enterprises to help them to solve the problem of local currencies exchanges and realize the smooth return of money to China.