What does the government in China have to do to encourage Chinese companies to go global?
The first thing is deregulation. Currently we have too many restrictions in doing overseas businesses. When we have to pay foreign currency to our foreign partners, for example, the procedures are very complicated. So these procedures should be simplified. But more important than government help, for a company to go overseas it must first build up its own capabilities. For example, a company must establish a global procurement network, a global design network, and a global production network. Q: What are the challenges that Chinese companies face when they go overseas? A: I feel that the largest challenge for Chinese companies when they go overseas is their lack of a global marketing and distribution system. When Chinese companies go into a new market, they must first find someone to sell their products. Because Chinese products aren’t well recognized by local retailers, they must try hard to penetrate new markets. Q: How do you expect revenues and profits, both domestically and overse
