The best time for domestic SMEs to invest in Europ

2022-07-24
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The ideal time for domestic small and medium-sized enterprises to invest in Europe

at present, China's small and medium-sized enterprises have reached more than 35 million, accounting for more than 99% of the total number of domestic enterprises. The total output value has reached nearly 60% of the national GDP, nearly 50% of the tax revenue and nearly 70% of the export volume, providing nearly 80% of China's jobs. Small and medium-sized enterprises have become an important part of domestic economic development and will become a booster of world economic development in the near future

actively carrying out foreign direct investment will drive the restructuring and optimization of China's industrial structure. It is an effective way for China's small and medium-sized enterprises to participate in the fierce competition in the international market under the conditions of market economy and expand their operations for further development

advantages of investing in European development

1 Help enterprises ease the pressure of RMB appreciation

2. Avoid trade barriers

3. Develop international market

4. Promote the further development and growth of private enterprises

5. Overseas production can directly obtain advanced technical information and management experience

6. Due to the early economic development, mature business operation and good investment environment in Europe. In addition, the European Union has 25 Member States recently, and trade exchanges between member states are frequent

7. The EU has the highest per capita income in the world, and high income drives high consumption

8. Since the signing of the LOM é agreement between Europe and Africa, the economic development of Europe and Africa has accelerated, economic cooperation has deepened, and the market has huge potential and development space

implemented the political, economic and social policies of central enterprises and relevant policies supported by the Chinese government

1 At present, China's international balance of payments continues to be in surplus, the RMB exchange rate has risen steadily, and the foreign exchange reserves are sufficient, creating good conditions for private enterprises to carry out overseas investment

2.at the beginning of 2000, the Chinese government increased support for foreign investment and encouraged qualified enterprises to carry out overseas investment

3. In late 2003, the Ministry of economy and trade, the Ministry of finance, the people's Bank of China, the State Administration of foreign exchange and other units jointly issued the supplementary notice on issues related to discount interest on revolving foreign exchange loans and RMB medium and long-term loans for overseas processing trade enterprises, which increased the discount interest ratio from 50% to 100%

4. In September, 2004, the Ministry of Finance and the Ministry of Commerce jointly issued the notice on supporting the initial expenses for carrying out investment in overseas resources and foreign economic and technological cooperation in the field of utilizing overseas resources, which provides certain support for the eligible overseas investment enterprises before registration in the investing country or before the signing of the project contract

Since 2003, the State Administration of foreign exchange has taken "simplifying procedures, relaxing restrictions and further promoting trade and investment facilitation" as one of the main tasks of foreign exchange management, and has successively issued a series of relevant supporting measures

6. In July 2003, the State Administration of foreign exchange cancelled the system of repatriating profit margin from overseas investment and returned the collected margin to the corresponding investors

7. In October 2003, the State Administration of foreign exchange delegated the authority to examine the source of foreign exchange funds for overseas investment projects in which the Chinese foreign exchange investment would not actually push up the price of nickel, and the amount of capital did not exceed 3million US dollars:

8. In February 2005, the time for the State Administration of foreign exchange to transfer back the funds of domestic equity of overseas listed companies was extended from 30 days after the funds raised were in place to 6 months after the funds raised were in place; The term of an overseas special foreign exchange account shall be extended from three months from the date of opening to two years from the date of opening

9. In April of 2005, domestic residents were allowed to inject domestic assets and equity into overseas enterprises and directly or indirectly hold shares and stocks of overseas enterprises

in a word, China has taken a substantial step in promoting enterprises to carry out overseas investment

unique advantages of investing in EU domestic enterprises

1 An important problem of China's foreign investment is the low ability of foreign financing, but the current investment in the EU has effectively avoided this shortcoming. EU countries encourage domestic investment. The preferential policies for supporting small and medium-sized enterprises have relieved China's investment enterprises of their worries in this regard

2. Enterprises in China's coastal cities began to have advantages in products, brands, equipment, technology, talents and management, and began to compete with foreign-invested enterprises in the same industry in the domestic market, making the latter's advantages decline relatively

3. Whether from the macro environment or the basic conditions of the enterprises themselves, China's private enterprises have had good conditions for overseas investment

4. The enterprise is small in scale, easy to start and change production, and "small ships can turn around", which is convenient to reduce market risks. At the same time, it can avoid fierce competition with large multinational companies

5. The prices of raw materials required for production are basically in line with international standards, so there is no significant change in the prices of raw materials for foreign investment

6. Low price product marketing strategy. Therefore, even for those small enterprises whose technology is not advanced enough and whose operation and production scale are not large enough, they still have strong advantages in participating in international market competition

7. Many enterprises that make export orders have many traditional famous brand products and mature production technology advantages

8. Enterprises make full use of the advantages of national preferential policies

9. Financial advantages provided by the investing country

10. The advantages of the investing country in promoting the development of enterprises

at the present stage in China, paying attention to domestic and international market competition, introducing products into economically developed countries, learning from advanced technology, management experience and thinking mode are important ways for China's small and medium-sized enterprises to further expand their development, which can put China's economic development in a broader space

reprinted from: China Packaging News

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