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What to Do to Make Chinese Enterprises Be the True Top 500 Brands

December 16th, 2010 at 04:48 am

The top five hundred Chinese enterprises actually are the "top 500 great ones". We are still confronted with a very difficult task to build world-class enterprises. These 500 biggest companies must to be strong and become the real top 500. Afterwards, it will not backward to face every crisis. There are two purposes for companies to be stronger and bigger, first is to defeat others and survive, the second is to make money. To make money and to survive are the motivation for companies to become big and strong, which is the inner logic for the market to push the development of companies. From this logic of the market, we can understand the behavior of companies, we also can foresee the future of those companies.Hey Journalists! Keep Away from wedding dresses !

Capitalism enterprise has develop the world market when the period of industrial revolution, and became a multinational enterprise. Why Gwyneth Paltrow all Like fashion zone ? Who Knows! In those areas where are still in the handicraft stage, the capitalist enterprises can obtain raw materials, markets, and excess profits. Where in the world there has high profits, capital will flow to there. Our large enterprises should go forward and take advantage of the market to develop themselves. And there are still many things to accumulate.

The net profits of China's 500 large companies are basically obtained from the domestic market, whose profit margin is more than 5 times the United States top 500. The domestic profits are massive while the profits from the global market are very tiny. In this case, if the Chinese companies want to go global, they have to go against the logics of the market and the properties of capital and enterprises.

From the development history of world enterprises, we could see the multinational corporations go abroad to the world market in the beginning of their growth, and get bigger and stronger at the same time. National markets are not their conjugal bed, instead, they put world markets as their conjugal bed. China is contrary, the domestic market is their tender land, and the world market is their incubus. Chinese capital and the internationalization of Chinese enterprises have become a logical paradox. The government can not change the characteristics of capital, and officials can not overturn the logic of the market. If China's top 500 want to go out to be stronger,firstly they must go out of the domestic market,such gental land, and break out from the strange circle of market.

So far, there are major bottlenecks that our enterprises need to go out. First, our experience in acquisition is still not enough. Such as Chalco purchased RioTinto is a cooked duck, but the duck fly away, and were juggling by others. Nowadays, with the increase of China's foreign exchange reserves and increasing strength of Chinese enterprises, we are faced with the opportunity to go out and the transition to the transnationals. Our companies are only strong at domestic, not so strong at abroad, and now they have to develop their own transnational professionals and develop the experience in dealing with international companies. Secondly, compared to the top 500 in the world, our companies is lack those talents who familiar with the financial are operation of capital, so the companies in the china are work hard in the country. Therefore, we only need to develop the experience of multinational corporation and understand the financial and capital operations of oversea market in the background of go aboard, it will be stronger and bigger.

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