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My Library Leave a message and exchange? Search articles Find library friends Share? More It is shocking to see how many companies in China are controlled by foreign capital. 2016-05-22? Zhao Jincheng 0 views 24728? Retweet 82 Add to my library? Chinese people wake up, how much do they know about foreign capital controlling Chinese enterprises? Economic security threats you don’t know about! ! According to a research report published by the Research and Development Center of the State Council a year ago (July 2006), among China’s open industries, the top five companies in each industry are almost all controlled by foreign capital: China’s 28 major In the industry, foreign capital has majority asset control rights in 21 industries. The glass industry and elevator manufacturers are already controlled by foreign investors; 11 of the 18 national-level designated home appliance companies are joint ventures with foreign investors; the cosmetics industry is controlled by 150 foreign-funded companies. ; 20% of pharmaceutical companies are in the hands of foreign capital. According to a survey by the State Administration for Industry and Commerce, foreign capital has an absolute monopoly in industries such as computer operating systems, flexible packaging products, photosensitive materials, radial tires, and mobile phones. In light industry, chemical industry, medicine, machinery, etc. In the electronics and other industries, the products of foreign-funded companies have occupied more than 1/3 of the market share. This was only a year ago, and now foreign capital mergers and acquisitions of Chinese state-owned enterprises have taken a new turn. The result is always to monopolize and strangle our corporate brands and technologies after taking advantage of our high-quality assets and huge market share at a cheap price, and to leave all debts, unemployment, financial risks, poverty and mountains of serious social contradictions behind. I. In this regard, there is no substantial difference between private equity funds (PE) and professional multinational companies, but the mergers of private equity funds and investment banks have an additional layer of second-tier dealers. In the financial industry, in 2004, Newbridge Capital (also a PE). Ultimately controlling Shenzhen Development Bank, Guangdong Development Bank is now held by Citibank of the United States with a shareholding of 36%, and the foreign shareholding of other major state-owned banks and financial institutions has reached 25% (of which PE accounts for a large proportion). There are about 3,600 Chinese papermaking companies in the papermaking industry. The country has an output of 56 million tons (2005). In the past 10 years, both production and consumption have grown at a rate of more than 10%, with production capacity accounting for 10% of the world and consumption accounting for 14%, ranking second in the world (second only to the United States). Most companies are short of funds. , technical equipment and raw materials are heavily dependent on foreign countries, low-end production capacity is oversupplied, and high-end paper is in short supply. Since the 1990s, international paper giants such as UPM, Stora Enso, Indonesian Sinar Mas Group, etc. have entered into joint ventures or direct investments. For example, in 2005, International Paper and Sun Paper established a joint venture in Yanzhou, investing US$160 million in a 300,000-ton liquid packaging paper production line. In 2006, Huatai Group entered into a joint venture with Stora Enso of Finland. Joint venture to build a high-grade overpressure paper project with an annual output of 200,000 tons in Dongying, Shandong, etc. CVC's merger with Chenming: Chenming Paper Group is a leading enterprise in China's paper industry. It was originally Shouguang Paper Mill with a production capacity of 6,000 tons. Listed on the Shenzhen Stock Exchange, it has total assets of 11.2 billion yuan and has more than a dozen production bases in Shandong, Wuhan, Jiangxi, Jilin, and Hailar. In 2005, its paper output was 2.1 million tons and its sales revenue was 17 billion yuan. It has ranked first in the country for 11 consecutive years. Among the top 500 Chinese enterprises and the top 50 paper companies in the world, in May 2006, the US CVC (an investment management company jointly established by Citigroup and Asia Pacific Enterprise Investment Management Company, managing US$2.7 billion in private equity funds) signed an agreement with Chenming. Strategic investment letter of intent, non-public issuance of 1 billion A shares to CVC, raising 5 billion yuan, CVC will hold 42 shares of Chenming, surpassing Shouguang State-owned Assets Supervision and Administration Bureau to become the largest shareholder. In September of the same year, this intention was cancelled, and the China Development Bank took the lead in forming a syndicate to apply for a long-term project loan of 6 billion yuan. Daily chemical industry detergents: Three of the country's four largest laundry detergent companies with an annual output of more than 80,000 tons have been acquired by foreign capital.

Procter & Gamble of the United States took advantage of its brand advantages and tax incentives to basically crowd out domestic detergent companies, and almost all the top ten domestic detergent brands were wiped out. Only four brands, Rejoice, Head & Shoulders, Pantene and Sassoon, occupy more than 60% of the domestic market, exceeding the internationally recognized monopoly line. Every time P&G recruits an employee, it means that 2 to 3 employees from China's original detergent companies will be laid off. In joint ventures in the daily chemical industry, foreign capital usually uses the original production lines and marketing channels of Chinese companies to work for foreign brands, while neglecting the original brands of Chinese companies. In early 1994, Unilever obtained a controlling stake in the Shanghai Toothpaste Factory and used brand leasing to operate the Shanghai Toothpaste Factory's "Zhonghua" toothpaste. The foreign party verbally promised that the investment ratio for its "Jienuo" brand and "Zhonghua" brand would be 4 : 6, but it has not been realized. China Toothpaste has contributed 800 million to 900 million in sales to Unilever for many years. China's famous trademark Maxam: This brand originally occupied nearly 20% of the domestic market. In 1990, Shanghai Jahwa and SC Johnson entered into a joint venture, and the "Maxam" trademark was shelved. Multinational companies have invested huge sums of money in Shanghai Jahwa, which is actually driving "Maximum" out of the market and opening the way for their own brands. Shanghai Jahwa's sales plummeted from 300 million yuan to 6 million yuan. Shanghai Jahwa spent 500 million yuan to take back the Meijia Net trademark in 1994, but it lost a valuable opportunity. Cosmetics: France's L'Oreal is rapidly occupying the Chinese market. The company acquired Little Nurse in 2003 and Yue Sai in 2004. It ranks first in the cosmetics field and ranks second in the skin care field after completing two mergers and acquisitions. Competition in China's cosmetics market has become dominated by foreign capital. After occupying the domestic high-end market, multinational companies are developing towards mid- to low-end brands and impacting local companies. For example, Unilever has strengthened its distribution in second- and third-tier cities since 2005. P&G has significantly reduced the prices of Rejoice, Tide and other products, and vigorously promoted Olay across the country. After L'Oreal acquired Little Nurse, it is looking for partners to expand into third-tier cities and rural markets. American Avon and Japanese Shiseido are also ready to make moves. In February 2007, Beijing Dabao, the No. 1 company in the country's skin care products industry, listed all its shares on the Beijing Equity Exchange (83.42 state-owned shares of Beijing Sanlu Factory, 16.58 Employee Stock Ownership Association). In March, it signed an agreement with Johnson & Johnson to transfer all shares. contract. In 2005, Dabao's sales were 780 million yuan (accounting for 1% of the national market), ranking first among domestic skin care companies. In this way, Johnson & Johnson has Dabao's second- and third-tier marketing networks across the country. The elimination rate of cosmetics companies is very high. There were more than 5,000 in the country two years ago, but now there are only 3,300 left. In 2005, there were more than 130 foreign-funded cosmetics companies, accounting for 40% of domestic sales and more than 80% of profits (the sales profit margin of foreign-funded companies is More than 10, domestic enterprises only 2-3). There are currently more than 20 local brands active in the market, including Longliqi, Lafang, and Dingjiayi. As foreign-funded companies target third- and fourth-tier cities, the space for domestic brands will be further squeezed. Pharmaceuticals: Huayao Group: the largest antibiotic production base in China, with sales revenue of 7.8 billion yuan in 2004, ranking second in the industry. In 2005, it fell to fourth place in the industry, with a loss of 20 million yuan. The company was in debt trouble. Equity reform was carried out in 2004. The 407 million state-owned shares of the listed company "North China Pharmaceuticals" held by the company were discounted to 1 billion yuan, and the other 58.2 million state-owned shares were sold to the Dutch DSM (the largest API manufacturer in Europe) for 200 million yuan to repay the debt owed to "North China Pharmaceuticals". "debt. DSM then acquired a 7.4% stake in North China Pharmaceuticals. In February 2007, DSM spent another US$35 million to acquire a 25% stake in North China Pharmaceuticals; it also invested US$106 million to establish a new company in cooperation with Huashan Pharmaceutical Group's penicillin and vitamin business, accounting for a 49% stake. DSM becomes the second largest shareholder of North China Pharmaceutical. Harbin Pharmaceutical Group: In 2005, CITIC Capital of Hong Kong and Warburg Pincus of the United States jointly invested to obtain controlling stake (?).

Gaitianli: In 2006.10, Bayer Healthcare (BHC) signed an agreement with Qidong Gaitianli Pharmaceutical Co., Ltd. of Dongsheng Technology to acquire the latter's "Baijiahei" cold tablets, "Xiaobai" syrup, and " "Xinli" cough syrup and other businesses and related assets, the acquisition amount is 1.072 billion yuan (108 million euros), Dongsheng Technology still retains part of the Western medicine OTC business. This is the largest foreign merger and acquisition in the pharmaceutical field. In February 2007, Sumitomo Corporation and Sumitomo Corporation (China) Co., Ltd. purchased 16 and 4 shares of Henan Tianfang Pharmaceutical Group respectively. Tianfang Pharmaceutical thus changed from a state-owned joint-stock enterprise to a Sino-foreign joint venture. (At present, most domestic pharmaceutical companies are joint ventures controlled by foreign capital?) French SEB of small hardware appliances acquired Supor, the domestic pressure cooker leader: Supor brand sales accounted for 40% of the pressure cooker market. In 2005, the national cookware industry sales were 5 billion yuan. In the first half of 2006, Supor's main business income reached 570 million. Supor has titles such as China's Well-known Trademark and China's Famous Brand, with an estimated brand value of 1.6248 billion yuan. In August 2006, French SEB (the world's number one brand of small home appliances) purchased 52.74-61% of Supor's equity for 240 million euros (Supor and related companies sold 250 million shares and 1.438% of SEB's equity to SEB for 18 yuan/share; Issued an additional 40 million A shares to SEB at the same price, made a tender offer to acquire 48.60-66.45 million shares of Supor, and controlled Supor. Six of the eight vice-director units of the Cookware Branch of China Hardware Products Association, such as Aistar and Shenyang Shuangxi, issued a statement in August 2006 opposing the Supor merger. They pointed out: Supor's sales in the cookware industry have exceeded 20%. According to the "Regulations on Mergers and Acquisitions of Chinese Enterprises by Foreign Investors": If the acquiring party's turnover in the Chinese market exceeds 1.5 billion and the market share reaches 20%, the merger and acquisition will result in one party's market share If the number reaches 25 or if 10 companies are acquired in a row within one year, they must report to the Ministry of Commerce and the State Administration for Industry and Commerce. Supor's mergers and acquisitions touched three of the four "red lines"; once this monopolistic merger and acquisition becomes a reality, the healthy competition in the industry will turn into vicious competition led by price wars, advertising wars, etc. Many domestic companies will go bankrupt and collapse, which will cause a large number of Employees lose their jobs. In Caitang Town, Guangdong alone, there are thousands of small cookware and hardware businesses. After the Ministry of Commerce conducted an antitrust investigation into the case, it was officially approved in April 2007. Lessons learned from the joint venture between SEB and Shanghai Electric Iron Factory: Shanghai Electric Iron Factory's "Red Heart" electric iron once occupied 47.4% of the domestic market share, and its brand appraisal value reached 130 million yuan in 1993. In April 1996, SEB and the factory jointly invested 16.5 million yuan (SEB invested 60%) to establish Shanghai Saibo Electric Co., Ltd. There are 5 people on the company's board of directors, 3 of whom are French. The French side used its controlling stake to turn the red heart into a processing workshop, with high input and low output, and transferred profits; it also used the sales team and network resources accumulated by the Chinese side over the years to enable SEB's Tefal and Good Fortune brands to enter hundreds of stores in the mainland at low cost. shopping malls, and implemented the division of counters, devalued popular brands, and positioned foreign brands as high-end. Due to obvious discrimination in promotion efforts, the market share of "Red Heart" dropped sharply to 20. The Chinese directors repeatedly requested the introduction or development of new products, but were rejected by the French side. There were constraints at every turn, and conflicts continued in board meetings. The joint venture company suffered a cumulative loss of 30 million in three years, and the financial statements were approved every year. In the end, China was forced to withdraw. In 1999, the French took over the entire operation and changed the joint venture into a wholly-owned company, leaving the Chinese side with a huge debt. The Chinese general manager (former deputy director of Shanghai Electric Iron Factory) warned domestic companies that are negotiating cooperation with foreign capital: Do not let foreign capital take control easily. Ma Detao, General Manager of Sales of Shuangxi Cookware: At the beginning of the merger and acquisition, the foreign party first fully controlled the advantageous resources such as the channels of the acquired brand, grafted its own brand, and then hid the domestic brand, using the premium ability of the international brand, through brand dislocation, to realize the transformation from the high-end market to the low-end market.

Through monopoly mergers and acquisitions and brand strangulation, foreign capital uses money to solidify domestic enterprises in the role of workers in the international industrial division of labor. Nanfu Battery: Nanfu's predecessor was Fujian Nanping Battery Factory. It initially had a registered capital of less than 2 million yuan and produced paste batteries. In the mid-1990s, demand for batteries surged and the company grew rapidly. At the beginning of the 21st century, the total sales volume exceeded 700 million, the output value was 760 million yuan, and the profit was more than 200 million yuan. It has more than 300 sales points across the country, occupying most of the Chinese market, and has become the largest alkaline battery in China and the fifth largest in the world. manufacturer. In 1988, Nanping Battery Factory invested 2.8 million yuan in fixed assets (40 shares) and cooperated with Fujian Industrial Bank (investment 900,000 yuan, 15), China Export Commodity Base Construction Corporation Fujian Branch (base Fujian, 20), Hong Kong China Resources Group Co., Ltd. Fu Co., Ltd. (subsidiary based in Fujian, 25), jointly established Nanfu Battery Co., Ltd. In 1998, in accordance with the "Commercial Bank Law", Industrial Bank withdrew and sold its 15 shares to Dafeng Electric, a company funded by all employees of Nanfu. In September 1999, the Nanping Municipal Government wanted to carry out "property rights reform" and "beautiful girls marry first", and linked it with China International Capital Corporation. The company's subsidiary CDH invested more than US$1 million with the Dutch National Investment Bank, Morgan Stanley invested US$4 million, and the Government of Singapore Investment Corporation invested US$10 million to form "China Battery" with Chinese shareholders in Hong Kong. Four foreign shareholders* ** holds 49 shares, and Chinese shareholders contribute 69 shares to Nanfu, accounting for 51 shares of China Battery. "China Battery" then took absolute control of Nanfu. In 1999, China Resources Baifu suffered huge losses in gold speculation and sold 8.25 of its shares in "China Battery" and transferred the other 20 shares to another subsidiary of the base company. In 2001, the subsidiary transferred these 20 shares to Fubon Holdings for US$78 million, and Fubon Holdings transferred them to Morgan Stanley for US$15 million.