What's next for Chinese companies doing overseas business?
World Insight with Tian Wei
Chinese companies' mergers and acquisitions overseas are slowing down.
Today, Chinese companies are much more upgraded than they used to be, and also given the geopolitics is playing an important role in the business area, the kinds of choices Chinese companies would like to make is different from the earlier time. So what's the best choice when Chinese companies do overseas mergers and acquisitions?
CGTN's senior correspondent Tian Wei interviewed Ning Gaoning, the Chairman of the Sinochem Group, who's also a CPPCC member. Ning believes that the best choice and strategy for Chinese companies to do overseas mergers and acquisitions is to find a new market for the growth of a company.
“People go outside China to invest for the reason they want to create more value… by using their technology, their brand, and their management to expand the market or to grow more in China. Basically, this has been its model. If you bought a company in a developed country, staying there as a mature business may pay a high price, and you will not get a proper return. So the whole strategy is to find a new market for the growth of a company,” said Ning. However, things are much more complicated now, because of the policy, geopolitics, and financial situation. All of these have made people hesitate.
How to deal with this reality? As a business person who has been going with ups and downs of the market and the international situation, Ning gave his response: “Things have changed, just accept it.”
According to Ning, Chinese companies are used to the changes. “We are used to this globalization turns, we are used to this across the board investment turns, we are used to this free trade turns, we are used to this kind of joint venture policy turns, and we were used to these things in the past.”
In the past, companies would work together to create common good, common wealth, and common benefit for the globe. But today, it's different: people are separated, they want to take care of their own interest, short term interest.
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