As statistics show, by the end of 2009 China had become the economic entity that suffered the most anti-dumping investigations for 15 consecutive years, and the most anti-countervailing investigations for three consecutive years.
China needs to find a more practicable way to break out of the traps of international trade. Therefore, to accelerate overseas mergers and acquisitions (M&A) seems to be a necessary choice. Overseas M&A is indispensable for addressing trade frictions and promoting industry upgrades, for dealing with the revaluation of the yuan and for acquiring resources.
Compared with the 1929 American crisis, China has learned so little in the recent financial crisis. Whether in finance, energy, resources or manufacturing industry, most Chinese entrepreneurs advancing overseas M&As seem to be lacking experience. The Chinese economy and society have not realized restructuring under pressure from the crisis outside. Instead, from time to time, they return to rely on the old system. Unexpectedly, the crisis has become the tool to transfer economical and social contradictions. Even worse, a mood of super optimism and nationalism has been spreading out all around China. In 2009, the so-called "G2" concept and "China Model" have appeared repeatedly in the media.
The book The Secrets of Chinese Enterprises: How to Counterattack in Upcoming Industrial War is actually a head-on blow and a wake-up call for the super optimism and nationalism mood among Chinese enterprises.
The idea of the whole industry chain and globalization strategy is the theme throughout the book. It says Chinese economic entities are still too fragile to survive bad times amid increasingly fierce business competition. Even the largescale State-owned enterprises, with enviable monopoly positions and large assets, play a role in the international competition that hesitates to make decisions for fear of losing profits. As for privately-owned enterprise, they never really come to the front stage. In most cases, it is coordination between government, State-owned enterprises and privately-owned enterprises in policy-making, information-sharing, human distribution and the formation of common interest entity that make a difference. |
