1、 外文翻译 原文 Outward investment by china gathering stream under the go global strategy Material Source: The Bank of Tokyo-Mitsubishi UFJ, Ltd. Economic Research Office Author: Yoko Hagiwara Although China is one of the nations accepting much direct investment, in recent years it is obviously expanding i
2、ts presence in outward direct investment under the governments go global strategy. In 2005, in addition to the increasing pace of the investing amount, which was US$12.3 billion for a single year that was 2.2 times of that of the previous year, and which reached US$57.2 billion in accumulating total
3、s, projects drawing worldwide attention, such as large-scale resource purchases and M&A of large corporations in developed countries, are increasing. In what follows, I will present the actual conditions of booming Chinas outward investment, and will try to evaluate them. 1. Development of the go gl
4、obal strategy （ 1） Background of the go global strategy While the Chinese government had promoted accepting investment from abroad, due to a capital shortage, it had strictly controlled outward investment. However, in 1999 it announced the go global strategy and turned its policy to the direction, r
5、ather promoting outward investment positively. After that, the policy to promote outward investment and to establish a supporting system was included in the 10th five-year plan (2001-2005). The first aim of the strategy is the development of resources insufficient within the country, and it seems be
6、cause, along with high economic growth, there was surging recognition that the shortage of resources will become a medium-to-long-term restraining factor for the growth. As the second aim, the international development of Chinese companies as multinational corporations is raised, and the background
7、would be that the government strongly recognized the influence by giant companies in the international economy, and felt the need to promote the multinationalization of Chinese companies. Moreover, in recent years the factors to enhance the expansion of outward investment increased, by growth accele
8、ration led by exports and investment. The vast amount of money inflow accompanied with the current surplus and the expansion of inward direct investment causes negative effects, such as the pressure for yuan appreciation and the domestic excess liquidity. Therefore, the expansion of outward investme
9、nt is seen importantly as one of the ways to alleviate them. Also, the necessity to shift the production bases abroad as a response to the trade friction becoming serious along with rapid export growth was heightened. （ 2） Strengthened the go global strategy Firstly, the policies based on the go glo
10、bal strategy include the deregulation of outward investment. An outward investment needs an authorization of the project itself by the Ministry of Commerce, and an authorization in the foreign currency administration by the State Administration of Foreign Exchange (SAFE). In the foreign currency adm
11、inistration, 6 provinces and municipalities of Guangdong, Shanghai, etc., were designated as the trial regions, and the authorization power for the project of US$1 million or below was delegated from the central to the local SAFE, within the total investment quota of US$200 million in 2002. After th
12、at, the trial regions were expanded, and all provinces, autonomous regions, and municipalities became the subjects in May 2005. At the same time, the total investment quota was enlarged to an annual US$5 billion, and the limit of a project amount the local SAFE can authorize was raised to US$10 mill
13、ion per project. The investment quota was eliminated finally in June 2006. Meanwhile, also the authorization power of investment by the Ministry of Commerce was delegated to the local commercial administrations from October 2004, except that to the large state-owned enterprises. Secondly, mainly in
14、the Ministry of Commerce, the support system of outward investment is being expanded. The Ministry of Commerce opened an internet site for outward investment support in April 2003, and began to provide a wide range of information of the central government policy, the investment environment in each c
15、ountry, the concrete overseas investment projects, and the organizations promoting outward investment, etc. Following that, the Ministry of Commerce, with the Ministry of Foreign Affairs, announced “the guidance list of industries for outward investment by countries” in July 2004, listed the recomme
16、nded industries in 5 areas of 1) agriculture, cattle breeding, and fishery, 2) the mining industry, 3) the manufacturing industry, 4) the service industry, and 5) others in 67 countries, and started to give the investing companies many kinds of preferential treatments in funds, tax, trading, foreign
17、 exchange, etc. Meanwhile, in November 2004 the National Development and Reform Commission and the Export-Import Bank of China also created a support system of the loans for outward investment, and started lending at preferred interest rates to the projects the government recommended to invest in ov
18、erseas. 2 .Present situation of outward investment Along with the go global strategy, the statistics were developed in line with the international standards, and since 2003 the flow of outward investment and the outstanding amount have become released at the actual base (Table 1). Table 1: Outward D
19、irect Investment by Area and by Sector 2003 2004 2005 Accumulated net overseas direct investment at the end of 2005 Billion dollars Billion dollars Share(%) Total 2.86 5.50 12.26 57.21 100.0 By area Hong Kong Caymen Islands 1.15 0.8 2.63 1.29 3.42 5.16 36.51 8.94 63.8 15.6 Virgin Islands Korea USA 0
20、.21 0.15 0.07 0.39 0.04 0.12 1.23 0.59 0.23 1.98 0.88 0.82 3.5 1.5 1.4 Refer to Table 1 (continued) Macau Australia Russia Sudan Bermuda Islands Singapore Germany Kazahstan Vietnam Thailand 0.03 0.03 0.03 n.a. n.a. 0.00 0.03 0.00 0.01 0.06 0.03 0.13 0.08 0.15 0.19 0.05 0.03 0.00 0.02 0.02 0.01 0.19
21、0.20 0.09 0.34 0.02 0.13 0.10 0.02 0.01 0.60 0.59 0.47 0.35 0.34 0.33 0.27 0.25 0.23 0.22 1.0 1.0 0.8 0.6 0.6 0.6 0.5 0.4 0.4 0.4 By sector Business services Wholesale and retail Mining Transportation Manufacturing 0.28 0.36 1.38 0.09 0.62 0.75 0.80 1.80 0.83 0.76 4.94 2.26 1.68 0.58 2.28 16.55 11.4
22、2 8.65 7.08 5.77 28.9 20.0 15.1 12.4 10.1 Note:Total include investment to other area and sectors. Source: Compiled by the Research Office, Bank of Tokyo-Mitsubishi from Ministry of Commerce, Statistical Bulletin of Chinas Outward Foreign Direct Investment. The major subjects of investment are divid
23、ed in three. The first group includes the tax havens, such as Hong Kong, Macau, Singapore, the Cayman Islands, the Virgin Islands, and the Bermuda Islands, and the investment to other areas are conducted through the investing companies established in those areas. These investments include not a litt
24、le roundtrip investments to China, in order to use Chinas preferential treatments on outward investment, and then it is possible that the direct investments both into and out of China are considerably inflated. Seen by industry, it corresponds to the fact that there are many investments on the busin
25、ess services industry mainly for investing companies. The second group includes the resource-rich countries, such as Australia, Russia, Sudan, Kazakhstan, etc. It corresponds to the steady movement of the investment on the mining industry. And there is an estimate that not a little number of investm
26、ents through the tax havens finally flows into the resource-rich countries, too. The third group includes the countries related to the overseas business by manufacturers, such as Korea, the USA, Germany, Vietnam, Thailand, etc. Seen by industry, not only investments to the manufacturing industry, bu
27、t also those to wholesale and retail industries are increasing rapidly, and it seems to be related to the trading or sales network development by the manufacturing industry. It is considered that large-scale projects for the acquisition of technologies and brands in developed countries push up the w
28、hole of investments, in addition to those for securing markets and avoiding trade friction. 3 Chinese large-scale investment attracting attention Although Chinese outward investment is rapidly increasing, its level was as low as the 16th of the world in 2005, and also as stated above, it would be in
29、flated with roundtrip investment to China. Still, why Chinese outward investment has been attracting attention from the world in recent years is that large-scale projects which developing countries are unlikely undertake in terms of resources and corporate acquisition have been increasing. (1)Resour
30、ce acquisition The Chinese active resource procurements stand out, and the especially outstanding ones are the outward investment by the big three state-owned oil companies, the China National Petroleum Corporation (CNPC), the China National Offshore Oil Corporation (CNOOC), and the China Petroleum
31、& Chemical Corporation (SINOPEC). Chinese oil companies mainly conducted new independent developments with high risk and high return during the 1990s. But in recent years, they turned their direction to the acquisition of existing oil fields from which they can estimate assured revenue, and are inve
32、sting a vast amount of money into those projects, because they expanded their capital strength by the revenue expansion due to rising the oil price and by the large-scale fund raising by listing in overseas stock exchanges. （ 2） Large-scale corporate acquisition in the manufacturing industry Another
33、 trend of large-scale investment by Chinese companies is the M&A of big corporations in developed countries in the manufacturing industry, and the main purpose is said to be the acquirement of technology and brands. Some insist on the threats of Chinese companies advance to overseas, but on the othe
34、r hand others strongly doubt the merits of those projects. The project that notably produced a big reaction was the acquisition of IBMs PC Division by Lenovo, the biggest PC manufacturer in China, in 2004. Although Lenovo became the worlds third PC manufacturer, next to Dell and Hewlett Packard, the
35、 penetration into the European and US markets that they aimed for has not progressed. Primarily, PC is becoming a commodity and the business profitability is very low. In this situation, the market evaluation is rather severe on their acquisition strategy that spent US$1.75 billion on the PC divisio
36、n of IBM that had a loss. Lenovos stock price flagged, and in September 2006 it was excluded from the Hang Seng Index that is the representative stock price index in Hong Kong. Also TCL, the electronic manufacturer that has been called as a pioneer of the overseas large-scale acquisition strategy by
37、 Chinese companies, is forced to review its strategy too. TCL virtually bought the TV divisions of Thomson and the mobile phone divisions of Alcatel by establishing joint ventures by its major equity funding with each of them in 2004, but both of the ventures have kept deficits. Especially, it broke
38、 off the joint venture agreement with Alcatel just 8 months after the start, because they could not reduce the friction due to the difference of corporate culture. TCL announced freezing its M&A strategy at the Shenzhen Stock Exchange in November 2005, and sold its two subsidiaries to a French compa
39、ny, Legrand, in December. And state-controlled Huizhou Investment Holdings transferred some part of TCL stocks to a Dutch electronic manufacturer, Philips. It is estimated that Huizhou Investment Holdings will use the sale gains as financial support for TCL. Also in the automobile industry, the move
40、ment of foreign corporate acquisitions by Chinese local manufacturers is outstanding. Shanghai Automotive Industry Corporation, the largest manufacturer in China, advanced the acquisition negotiation with MG Rover in the UK in 2004, after the acquisition of SsangYong, a car manufacturer in Korea. Bu
41、t in April 2005 the negotiation broke up and MG Rover went bankrupt. Then Nanjing Automobile Group Corporation, a midsize manufacturer, bought MG Rover in July 2005. Nanjing Automobile plans to produce MG Rover cars in China and the UK in 2007, and in the US in 2008. However, Nanjin Automobile had a
42、lready run a deficit since before the acquisition of MG Rover, and there is a report that they contemplated to search the partner in order to reconstruct their own business, using MG Rovers brand as leverage. 4 Evaluation of the go global strategy Chinas outward investments gave the world a surprise
43、 by the dynamic development in the short-term due to being supported by the governments go global strategy. However, it cannot be denied that the joint effort by the nation and corporations contains big problems and is apt to hinder their globalization. Firstly, because of being based on the nationa
44、l strategy, excessive fund investment on which the profitability is not considered enough tends to be easily conducted. As the result of that, Chinas resource-acquisition activities are not only a waste of Chinese money itself, but also strictly criticized from abroad as the main cause to inflate th
45、e resources prices. Meanwhile, in the manufacturing industry, the effectiveness itself of the strategy to obtain technologies and brands, and to save the time for the development, is doubtful. That is, it is pointed out that they buy the businesses which companies in developed countries regard as at
46、 the “decline” stage of the product life cycle at high prices. The product life cycle is the process from the time a product is brought into the market to the time it is getting thrown off and disappears from the market. It is often expressed as 4 stages of Introduction, Growth, Maturity, and Declin
47、e. At the Decline stage, the profit becomes less by severe competition. Secondly, as the result of raising concerns about the foreign countries securities, those investments bring a bad influence on the businesses. In 2005, on the acquisition of the US oil company, Unocal Corporation, while a US oil
48、 major, Chevron Corporation, presented US$17 billion, CNOOC competed with them, offering US$18.5 billion. But they were forced to give up the acquisition by the intervention of the US Congress (however, some point out that CNOOCs amount was too much, and the failure of the acquisition rather prevent
49、ed their waste of money). And in 2006, there were raised worries about leaks of the secrets on the purchase of the Lenovo-made 16,000 PCs by the US Department of State, and the Department was forced to announce that they use those PCs only in the works without confidential documents. As described above, the large-scale acquisitions brought home to Chinese companies the difficulty of globalization. On the other hand, it is true that Chinese companies already have a considerable influence over the world market. They are steadily penet
