Lang Xianping Unveils The Veil Of Foreign Capital Entering The Chinese Market

In the seventh round of the Sino US strategic and economic dialogue, the United States proposed that China would further open its market to foreign investors, continue to reduce the industry restrictions on foreign investment catalogues and free trade zones, and simplify foreign direct investment procedures.

While China and the United States strongly push bilateral investment agreements, we should be vigilant against massive foreign acquisitions and unfair acquisition by foreign investors.

According to the data of the research and development center of the State Council, among the industries that have been opened up in China, the top five enterprises in each industry are foreign-funded enterprises.

Not only that, 55% of China's import and export trade is foreign capital, of which 87% of the export of high technology is foreign capital.

According to the data of the General Administration of industry and commerce, 80% of the tire industry is foreign capital, 75% of auto parts industry is foreign capital, 80% of vehicle brand and 90% of sales are foreign capital or joint venture.

Such amazing foreign companies' coverage makes us have to worry about how these foreign companies that affect the development of the industry will affect our lives.

I said in Lang Xianping,

In China, the author analyzes the hidden dangers and Countermeasures of the large number of foreign acquisitions of Chinese enterprises. Let's share with you.

WAL-MART in the United States is absolutely not willing to deduct the payment of suppliers.

For example, according to the eleventh chapter of the bankruptcy law of the United States, any supplier can go to the federal bankruptcy court of the United States to declare WAL-MART bankrupt as long as WAL-MART has three suppliers in excess of 5000 dollars.

So WAL-MART didn't dare to pay for it.

Foreign investment is not terrible. The terrible thing is that we lack effective rules of legalization.

Since

The benefits are so good that they are also good for us to open factories in China. Not only do we employ our workers but also increase our consumption, why do we need to exclude foreign capital? For a simple reason, let me take Shenzhen for example, Carrefour and WAL-MART, suppliers, and they do not pay.

If the enterprise is in a big financial environment, the supplier can not win the lawsuit and can only be exploited.

Where is the problem? Our foreign investment lacks legal management.

McKinsey, a leading consulting firm, has reported that the 70%-80% of China's retail market will be swept by foreign investment, including WAL-MART, Carrefour and so on.

If the prophecy really happens, once foreign occupation takes place

80% of the retail market, they will unite monopoly, and then lift consumer prices, pressure on the supply price to exploit suppliers, the profits legally remitted out of China.

Without legalized rules of the game, foreign capital will probably buy large quantities of our enterprises and monopolize the market, and the biggest victims will be our common people.