China Overseas Entrepreneurship: Opportunities and Traps

  "It’s good to be at home for a thousand days, but it’s difficult to go out." Talking about overseas entrepreneurship, Sun Weijun quoted an old saying and said with emotion. He is the vice president of Tianjin Julong Group Company and participated in witnessing the company’s "pioneering" in Indonesia and other places.

  Julong started from a street grain and oil store in Tianjin in 1993 and has grown into a multinational oil group in the whole industry chain. It has experienced two rounds of hard work at home and abroad.

  Recently, Sun Weijun watched the documentary of Nanyang and was moved by the hardships and unyielding of the ancestors. He said that in those days, Chinese’s going out was furtive, and the state prohibited it; Now, Chinese’s going out is aboveboard, and the state encourages it. "This difference is big!"

  At the end of last century, "going out" has become China’s national strategy; In recent years, the proposal of the "Belt and Road" strategy has further clarified the key direction of "going out". Whether it is the government or the people, the understanding has been clear, and the relevant systems are being established and improved. At the National People’s Congress last year, Li Keqiang, Premier of the State Council of the People’s Republic of China made it clear when answering a reporter’s question, "We also want to see China enterprises go abroad and China citizens go abroad to start businesses."

  Today, thousands of enterprises from Chinese and China in Qian Qian are sailing to the world stage. No matter in the Sahara desert or on the edge of Greenland glacier, there are all footprints of Chinese’s pursuit of dreams.

  Nevertheless, it is not easy to open a door and set up a household in a foreign country.

  Some "pits" are dug by ourselves.

  In October 2006, when Julong built the first palm tree plantation in Indonesia, the difficulties encountered were various: the climate was different, and heavy rains came; Language barrier, misunderstanding is inevitable; Even the infrastructure is not at the same level. When Sun Weijun went to the local area for the first time, he had to go a long way to find the cell phone signal, which often attracted a group of children to watch.

  More importantly, the experience in China cannot be "translated" overseas. "For example, even if foreign governments are very supportive of the project, the problems they can solve are very limited. Many times, enterprises have to find their own ways. Unlike in China, the government is very strong." Sun Weijun said.

  At the beginning of the first plantation, some local villagers demanded high land compensation fees and blocked the construction. It was of no help that the local county magistrate and police chief intervened.

  In fact, the differences in natural environment, social culture, laws and policies, and even personal safety are common problems in Chinese’s overseas entrepreneurship. Because Chinese entered the world late, it faces greater risks. In some countries, the robbery of Chinese has even become commonplace. This requires the China government and society to establish a support system for multinational companies in China and Chinese overseas.

  However, there are also some "pits" that we dug ourselves.

  A former head of a state-owned enterprise in charge of overseas business for many years said that after 30 years of rapid development, compared with European and American enterprises, China enterprises have certain advantages in capital, but they are at a disadvantage in management and culture. This makes Chinese’s road to the world much bumpy.

  He once visited the minister of water resources of an African country, and the minister said, "I want you to build a water plant. Before, your compatriots got the project at a low price, and finally they couldn’t do it and left it there. Now, you finish it. " How embarrassing this kind of project is. "We focus too much on short-term interests, lack a serious and honest attitude, and lack persistence in quality. This is a serious injury for some China enterprises." The person in charge said.

  Now, many experts put forward various suggestions for China enterprises to go abroad and start businesses overseas in China, such as asking the government to give greater policy support and establish a perfect service system. But the person in charge believes that it is simply how to reduce parasitic behavior and opportunism. China enterprises don’t lack the cleverness of the needle, but the clumsiness of the elephant’s needle.

  Too "smart" will become a trap.

  Long Guoqiang, deputy director of the State Council Development Research Center, once said in the 260th Sina Chang ‘an Forum that under the imperfect domestic market system, China enterprises have developed many bad habits, and the enterprises themselves don’t even know that standardized business behavior and social responsibility are very big challenges.

  A business owner in China, who is wandering in Central and West Africa, said that hard work, intelligence and flexibility are Chinese’s advantages, and no matter how barren the land is, it can take root. However, sometimes they are too "smart" and always want to take shortcuts. They like to use money and find officials to do things. This method is easy to use in some countries with imperfect legal system, and it has great side effects, and it is easy to shoot themselves in the foot. "Now, Chinese’s customs here are often asked for ‘ Tip ’ The reason is that someone used to take money to clear customs and accumulated bad habits. "

  Chinese people have traveled all over the world, and some "Chinese-style" behavior patterns have also been criticized. What is outstanding is that economic interests are paramount, social interests are ignored, and environmental protection, labor, production safety and social responsibility are ignored; There are many short-term and short-term thoughts on gold rush, insufficient preparation and no long-term vision and development strategy; Neglecting staff training and education, the quality of dispatched personnel is uneven.

  Although some parties may be lucky for a while, it actually affected Chinese’s local entrepreneurial environment.

  The "correct posture" of China’s overseas entrepreneurship

  The overall growth of China’s strength has provided a foundation for enterprises from Chinese and China to start businesses overseas, and the supporting system has been improved day by day. Great progress has been made in the improvement of investment management system, the flourishing of transnational financing and legal services, and the protection of overseas rights and interests. This was displayed intensively in the evacuation of overseas Chinese in Libya, which left a deep impression on the world.

  In addition, more and more enterprises in Chinese and China have realized the importance of win-win situation in overseas development, and consciously promoted the localization process. Constantly integrating into the local society and creating value for the stakeholders, especially the local people, is the "correct posture" for Chinese’s overseas entrepreneurship.

  After the "One Belt, One Road" strategy was put forward, China made it clear to the world that Chinese should uphold the concepts of peaceful cooperation, openness and tolerance, mutual learning and mutual benefit, promote pragmatic cooperation in all directions, and build a community of interests, destiny and responsibility with political mutual trust, economic integration and cultural tolerance. This concept is rooted in the ancient philosophy of "stand up for yourself, stand up for yourself, and reach for others", which has been strongly resonated in the world and guided Chinese to go out.

  Sun Weijun believes that building the most extensive "United front" in the local area is a magic weapon for Julong to develop continuously overseas. "The risk and sensitivity of overseas land resources development and investment are very high, and it is very important to win the trust and cooperation of local governments, religious organizations, residents and other stakeholders." To integrate into it, it is the only way to assume social responsibilities and serve local residents.

  Sun Weijun still remembers that in 2006, Julong finally decided to go to Indonesia. The first blueprint discussed by senior executives was not the palm tree planting planning layout, but the plantation comprehensive supporting map, discussing where to build mosques, churches, primary schools and hospitals. "We should combine what the enterprise produces, what it occupies and what it leaves for the local people, and solve this problem, so that the enterprise can fundamentally land."

  The location of the first palm plantation in Julong was sparsely populated at first, and the local people made a living by fishing and lived a primitive and poor life. In the past 10 years, Julong has paved roads, dug wells, built Hope Primary School and waterworks, and set up communication towers. The village has electricity and pure water, and every household has used televisions and refrigerators. Children can also be sent to Julong Hope Primary School to study. The income of local people is more than ten times that of the past.

  "We and the local people really formed a community of destiny, sharing weal and woe. How can they not want us to succeed in starting a business and not help us start a business? " Sun Weijun said that only a win-win situation and a win-win situation can help Chinese’s overseas entrepreneurship.

  In fact, to resolve the initial land expropriation storm, Julong was realized by turning to the familiar Muslim elders and holding religious ceremonies. The reason why these elders are willing to come forward is that Julong fully respects the religious beliefs of local people and has established a foundation of mutual trust.

  The above-mentioned business owners who started businesses in Central and West Africa are deeply impressed by this. He said that Chinese is abandoning the mode of making quick money. On the one hand, Chinese’s understanding is improving, and on the other hand, people are wary after understanding the routine. China Company has gradually deepened its roots and taken care of the comfort of all parties.

  He also has an experience: the cruel situation of infighting has changed a little, and the win-win cooperation between enterprises in Chinese and China has increased. Chinese gradually realized that foreign markets lacked resilience and identity than domestic markets, and it would be very difficult to enter Chinese if it failed. Although there is still a long way to go with the coordination norms of Japan and other countries, after all, they are no longer pushing down prices and dismantling Taiwan regardless of costs and rules.

  "For Chinese, an overseas entrepreneur, we should not only learn how to make money, but also learn to share and cooperate. In this way, Chinese can last long overseas and will be popular and respected. " He said.