Chemical companies go out to the world

Although China has become the world's second largest economy, it has few exciting achievements in terms of overseas capital output, overseas investment and construction, or the establishment of well-known overseas brands. It is particularly worth mentioning that compared with the overall long-term surplus of China's foreign trade, the chemical import and export trade has been in a deficit situation for many years, and the industry's weak position is fully shown. In order to completely reverse this passive situation, the chemical industry should gather courage and build confidence. In particular, a group of advantageous enterprises should take the lead in implementing the “going out” strategy and seek development overseas, so as to achieve internal and external interaction and create a chemical industry. Great country.

 

The author believes that for chemical companies with large export shares and foreign trade companies with strong capital strength, in view of the current global economic downturn, asset prices falling, and the continuous appreciation of the renminbi, if they can actively implement the strategy of going global, seize Opportunity to build a factory overseas is a timely and significant event.

 

First, the appreciation of the local currency has greatly increased investment efficiency and success rate. In recent years, the RMB exchange rate against the US dollar has hit record highs, which means that the same amount of RMB has increased purchasing power in the international market. In this context, whether it is investing in overseas factories or implementing mergers and acquisitions, it can save a lot of investment costs and improve investment efficiency. At present, the sequela of the financial crisis has not subsided, and the impact of the European debt crisis is still spreading, leading to the stagnation or retrogression of some countries' economies. At this time, investing in these countries to build factories, while increasing employment opportunities in the local area, has also increased local taxes. It is easier to obtain government support, and the success rate of setting up factories naturally rises.

 

Second, it can alleviate the pressure of overcapacity in China. At present, domestic chemical production capacity has entered a stage of structural excess, and it is not uncommon for loss-making operations and competitive price-cutting exports. The result of internal consumption is to sacrifice the interests of the industry, but to make overseas cheap. By investing and building factories abroad, it can reduce the supply of similar products in the internal market, ease the contradiction between supply and demand, and help improve the operation quality of existing enterprises. At the same time, in view of the long-term upward trend of international crude oil prices, sea freight rates will rise, and overseas factories will avoid long-distance shipping, and local production will not only improve the gross profit of product units, but also enable local consumers to obtain cheaper prices. Wumei products.

 

Once again, trade barriers can be effectively avoided. In recent years, China's export products such as rubber tires, phosphates, glyphosate, polysilicon, etc., often encounter "double-reverse" investigations in the importing countries, seriously affecting the reputation of China's chemical industry in overseas markets, and also made related companies pay Excessive response to energy and expenses. The direct establishment of factories overseas, the procurement of raw materials on the spot, local sales, effectively avoiding trade barriers.

 

Finally, it is conducive to improving the trade structure and improving the overall quality of the enterprise. The reason why China's chemical foreign trade has a large deficit is that the main reason is that the export is mainly primary products with low technology content and low added value, while imports are mainly new materials and high value-added products. At the same time, there are also Multinational corporations have a considerable relationship with increasing investment in China every year. Therefore, if some of the advantageous projects are deployed overseas, it will offset some of the trade deficit and improve the overall chemical foreign trade situation. In addition, due to the direct participation in the international economic cycle, all overseas business operations must be carried out in accordance with international trade practices, so it is easier to introduce advanced management methods and rapidly improve their overall management level.