It is understood that at present, the Philippines, Iran, Saudi Arabia, Pakistan and other countries have Chinese-funded enterprises under construction of ceramic factories.
However, although building factories overseas can avoid risks such as anti-dumping, environmental protection policies, and labor price hikes, there are also some unfavorable factors that investors need to consider carefully. Such as control of local government policies, language barriers, and unfamiliarity with the investment environment.
In this regard, Wu Nanchang, chairman of Foshan Xinmei Ceramics, made several suggestions for the reference of industry colleagues who intend to invest and build factories overseas:
1. First of all, the countries that invest abroad should abide by the "three noes" principle, that is, countries that have territorial disputes and historical grievances with China will not go, countries with national unrest and local wars will not go, poor infrastructure and trade union forces Too strong country don't go.
At present, the investment areas in which the ceramics industry has gone abroad, most countries are still behind the economic development and social livelihood of China. Attention should be paid to the state relations between the investing country and China, traditional folk friendship, political stability, opposition parties, anti-government organizations and anti-government armed forces and public security. Also pay attention to the stability of the currency of the host country and the degree of foreign exchange control. Sometimes a business makes money, but loses money after getting back to China through a black market exchange.
2. The above are the first weighing factors. Don't always put the national population (actually market capacity) and production cost factors first. Cost is not everything. When inspecting, always compare with China's production cost in the mind. In fact, the market competition counterparts of the investment country are the same as yours. In addition, they have many advantages such as local connections.
3. The political situation and ruling parties in foreign countries cannot be as stable as China. We must pay attention to building relationships with people from various parties and parties. Those who are not important to you today may decide everything about you tomorrow.
4. When you don't know the other party well, don't easily cooperate with local people to invest or lease their important property. The funds are not enough, and you should rather slow down the pace of development. The Chinese are afraid of things and are willing to spend money on disaster relief, which is famous all over the world. There are too many examples to prevent partners from provoking commercial disputes in the future, leading to investment failures or greatly reduced benefits.
5. The management methods of Chinese ceramics enterprises may not be effective in foreign countries, because the management people and the social environment are different.
6. Although there is a translation, it is not always available. Investors need to consider the long-term inadequacy of social, cultural, and living environments, as well as loneliness.
7. It is fast to build a factory in a foreign country, from flat land to production in 2-3 years. China's speed model is not suitable for countries other than China.
8. Investment construction and production operations. Because of language barriers, investors are unlikely to develop grey friendship with local officials. Therefore, all work must be standardized. Once you seriously violate local laws, the company is fined, and the investor or legal representative is deported, you can only remotely control the companies you invest in China.
9. Do more philanthropy and establish a good social image of foreign investors. Caring and caring for local employees, at least make them feel that you really care about them and then care about money, not the other way around.