Problems in enterprises' foreign direct investment

Although China enterprises' foreign direct investment has made great progress and made great contributions to the development of national economy, compared with developed countries such as the United States and Europe, China's foreign direct investment level is far from the status of the second largest economy in the China world, and enterprises still face many problems in the process of foreign direct investment.

First, in terms of domestic environment, the development of China's economic environment is not perfect enough, and there is a problem of uncoordinated economic and social development. In the strategy of strengthening the country, the foreign direct investment strategy does not occupy the main position, and the enterprises have little experience in foreign investment and a small scale, which leads to the unsuccessful overseas mergers and acquisitions. At present, there is an imbalance in the distribution of enterprise investment areas in China. Although the coverage is wide, the investment level is low. Among many foreign direct investment enterprises, state-owned enterprises occupy a large part, and there is an unreasonable investment structure.

Second, the government and society have not given enough support to enterprises' foreign direct investment. The role of the government in the process of foreign direct investment of enterprises is not clear enough, and the service function of the government is not fully exerted, and the foreign direct investment of private enterprises lacks policy support. China's legislation on foreign direct investment is also imperfect, lacking unified norms. In the international disputes caused by foreign direct investment, China's lack of diplomatic participation and international multilateral coordination ability is not strong, which is also not conducive to protecting the interests of foreign direct investment enterprises. In terms of social support, there is no third-party service organization in China that specializes in foreign direct investment, and the communication between enterprises, trade associations and the government is not smooth and information is not shared, so it is difficult to provide help and support for foreign direct investment enterprises.

thirdly, the domestic financial system is not perfect. China has strict examination and management of funds entering the field of foreign direct investment, which makes the procedures of foreign investment complicated, weakens the enthusiasm of enterprises for foreign direct investment and discourages their investment enthusiasm. Financial institutions in China have not developed financial products and services for enterprises' foreign direct investment, which can not meet the needs of enterprises' foreign direct investment; The government lacks policies to encourage private capital to enter the field of foreign direct investment, which also makes private assets account for a relatively low proportion in foreign direct investment. Imperfect laws and regulations lead to doubts about the legitimacy of private financial institutions and block the channels for private capital to enter foreign direct investment. The state does not provide tax relief and other policies for foreign direct investment enterprises, which also reduces the enthusiasm of enterprises for foreign direct investment. Insurance institutions in China have not introduced insurance types for foreign investment projects, and enterprises' foreign direct investment lacks interest protection.

fourth, the enterprise's own foreign investment ability is not strong. China enterprises lack clear foreign direct investment planning, are not competitive internationally, lack bargaining power in the process of foreign investment, and do not adapt to international competition rules. China enterprises have irregular problems in management system and financial management, which also leads to poor borrowing capacity and lack of capital capacity for foreign direct investment. Due to the lack of professional talents and core technologies, enterprises in China lack the ability of risk early warning in foreign direct investment, and they don't know enough about the laws and policies of investment destinations, so it is difficult to show their sense of corporate social responsibility locally. Moreover, among foreign-invested enterprises, small and medium-sized enterprises lack financing ability, and private enterprises are not strong in risk resistance, which also hinders the development and growth of China enterprises' foreign direct investment to some extent.

Countermeasures and suggestions for China enterprises' foreign direct investment

First, the government should provide a good environment for enterprises' foreign direct investment. We should fully realize the significance of foreign direct investment strategy for the improvement of the country's comprehensive national strength, and formulate a strategic plan conducive to overseas direct investment. For example, China's "Silk Road" economic belt and "Maritime Silk Road" strategic concept can bring many opportunities for China's foreign direct investment. The positive transformation of China's economic development and construction is also conducive to improving the level and quality of China's foreign direct investment. At present, in China's foreign direct investment, resource-based investment accounts for the main part. However, with the adjustment of China's economic structure, foreign direct investment will also turn to service industry investment and high-end manufacturing investment.

second, set up a unified management organization to provide services for foreign direct investment enterprises. At present, countries such as the United States and Europe have set up special independent institutions to promote the development of foreign direct investment. However, there are still problems in the management of foreign direct investment in China, which reduces the management efficiency of foreign direct investment activities. China can follow the example of the United States and Europe and set up a "foreign investment management committee", which will take charge of foreign direct investment affairs, coordinate all departments involved in foreign direct investment, and improve the service efficiency for foreign direct investment enterprises. This institution should provide consulting services, project management, risk assessment, coordinated management and other services for foreign direct investment enterprises, and actively participate in the formulation of laws, regulations and policies related to foreign direct investment.

Third, improve the fiscal, taxation and financial systems to provide financial support for foreign direct investment enterprises. First of all, a fund should be set up to support foreign direct investment, and the source of funds should be borne by the government finance. The fund mainly supports foreign direct investment enterprises; Secondly, the implementation of further preferential tax policies for foreign direct investment enterprises is conducive to increasing the profitability and capital accumulation capacity of enterprises, encouraging enterprises to conduct foreign direct investment activities and enhancing their international competitiveness. Finally, it is necessary to establish financial institutions and insurance institutions for foreign direct investment enterprises, improve the financing ability of enterprises, and provide insurance services for possible risks in their investment.

fourth, enhance the enterprise's own ability and enhance the international competitiveness of foreign direct investment. Enterprises in the United States and Europe all have clear strategic plans for foreign investment, deeply understand the policy environment of investment destinations, and actively undertake corporate responsibilities. Therefore, in order to improve the success rate of China enterprises' foreign direct investment, the key is to enhance their own capabilities. Enterprises should have a clear foreign direct investment plan to avoid blind impulsive investment. In specific foreign direct investment activities, we should actively implement localization strategies, such as making full use of local talents, technology, resources and management systems, so as to enhance the goodwill of investment destinations to China enterprises. In addition, enterprises in China should pay attention to social responsibility, promote local employment, upgrade production technology and train talents through foreign direct investment.