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China's overseas investment model
Comparative Analysis of Overseas Investment Models of China Enterprises

First, the establishment of overseas marketing channel investment model

The establishment of overseas marketing channel investment mode means that the purpose of overseas investment of some China enterprises is not to establish production bases or R&D centers in the host country, but to establish their own international marketing institutions, so as to establish their own overseas sales channels and networks, sell their products directly to overseas markets, reduce intermediate links and improve the profitability of enterprises. According to the statistics of the Ministry of Commerce, by the end of 2003, overseas trading enterprises accounted for 55% of the total number of overseas enterprises, and a considerable number of them were overseas marketing agencies of domestic sponsored enterprises. This shows that up to now, establishing overseas marketing channel investment mode is the most important mode for China enterprises to invest overseas.

The overseas investment of Sanjiu Group, the largest pharmaceutical company in China, basically belongs to this model. The manufacturing base and R&D center of Sanjiu Group are both in China, and overseas companies are mainly marketing agencies. Since 1992, Sanjiu Group has set up marketing companies in more than ten countries and regions such as Hong Kong, Russia, Malaysia, Germany, the United States, South Africa, Singapore, Japan and the Middle East. As the overseas window of Sanjiu Group, these marketing companies are responsible for letting consumers in these countries and regions know about Sanjiu products and opening up the overseas sales market of Sanjiu products. With the development of overseas marketing companies, the market of Sanjiu Group products has gradually evolved from a single domestic market to a global market. In addition, the overseas investments of Fujian Fuyao Group, Tianjin Tiens Group, COFCO Group, Sinochem Group and China National Technology Group are mainly to establish their overseas marketing networks, and also belong to the investment mode of establishing overseas marketing channels.

Judging from the current situation, China enterprises have their advantages and constraints in establishing overseas marketing channels. The advantages are as follows: first, enterprises can directly sell their products to overseas target markets by building their own overseas sales channels, which is conducive to expanding export scale. Second, under this model, enterprises can not only directly expand product exports, but also gain considerable profits in the circulation field by directly controlling overseas sales, and also directly understand market information. Thirdly, the attraction of "domestic production and foreign sales" to China enterprises will be long-term, because the abundant labor and other factors that lead to the international competitiveness of products produced in China may remain for a long time. Fourth, for some large enterprises, the establishment of overseas marketing channels is conducive to their overall consideration of import and export, domestic and foreign markets, overall consideration of available resources at home and abroad, and implementation of their global development strategy, which not only promotes exports but also seeks good profit opportunities for imports, thus truly realizing international operation. Fifth, from a macro-economic point of view, it can also earn foreign exchange for the country's exports and solve the employment problem of a large number of laborers.

At the same time, there are still some restrictive factors for China enterprises to establish overseas marketing channels, that is, this investment model is mainly adopted because sales have gone abroad, but the production, procurement and R&D of enterprises have not gone abroad, so they are vulnerable to various foreign trade barriers, including anti-dumping, and enterprises need to appropriately strengthen their ability to cope with this.

Second, the overseas processing trade investment model

Investment in overseas processing trade means that some Chinese enterprises set up production and processing bases abroad to carry out processing and assembly business, mainly investing in their own equipment, technology, raw materials and parts, and then exporting them to other countries and regions after local sales or processing and assembly, so as to promote and expand the export of domestic equipment, technology, raw materials and parts. In recent years, overseas processing trade investment has increasingly become an important way for enterprises to invest abroad because it meets the requirements of China's current economic restructuring. According to the statistics of the Ministry of Commerce, by the end of February 2003, there were 490 overseas processing trade enterprises approved and put on record by the Ministry of Commerce. Domestic enterprises engaged in overseas processing trade are mainly concentrated in industries with mature technology and overcapacity, such as textiles and clothing, household appliances, light industry, machinery and raw materials.

In recent years, Huayuan Group's overseas processing trade investment scale is nearly 300 million US dollars, which has played a leading role. 1992 Huayuan group, which was born in Pudong New Area, Shanghai, is a large state-owned enterprise group with textile industry as its pillar industry. In the middle and late 1990s, China's textile industry faced with shrinking domestic market and overcapacity, while in the international market, it was constantly restricted by trade barriers, mainly export quotas and safeguard measures. At that time, Huayuan Group abandoned the traditional practice of relying solely on exports to occupy overseas markets and developed overseas processing trade in another way. We have successively invested in establishing overseas production and processing bases in Tajikistan, Niger, Mexico, Canada and Thailand, rationally utilizing the rules of origin, effectively avoiding foreign trade barriers and anti-dumping, expanding overseas markets, and promoting and expanding the export of domestic equipment, technology, raw materials and spare parts. Huayuan Group has set up two textile enterprises in Mexico and Canada, and expanded the export of cotton yarn and fabric products to North America, especially the United States, by taking advantage of the preferential policies of duty-free and quota-free for textiles made of cotton yarn or fibers produced by members of the North American Free Trade Agreement.

In addition, the overseas investment of Shenzhen Konka Group, Zhuhai Gree Group, Jiangsu Chunlan Group and other enterprises also belongs to the overseas processing trade investment mode.

The biggest feature of overseas processing trade investment model is two interactions, namely, the interaction between investment and trade and the interaction between foreign trade and economic cooperation and domestic economy. The first interaction of promoting and promoting foreign trade export through foreign investment; Accelerating the adjustment and optimization of domestic industrial structure through foreign investment and export is the second interaction. The main purpose of these investments is to open up foreign markets, promote exports and optimize the domestic industrial structure.

The second characteristic of overseas processing trade investment mode is that the main way for enterprises to invest abroad is to establish production bases abroad and carry out processing and assembly business, with their own equipment, technology, raw materials and parts as the main investment, which are processed and assembled into finished products, and then sold locally or re-exported to other countries and regions.

Enterprises that adopt this investment model are generally domestic manufacturers with mature technologies in textile and clothing, household appliances, light industry, machinery, raw materials and other industries, and their investments are concentrated in developing countries and regions such as Asia, Africa, Latin America and the former Soviet Union and Eastern European countries. The condition for enterprises to invest overseas is overcapacity at home, but their products have a market abroad.

Enterprises use overseas processing trade to make overseas investment. The first advantage is that they can relocate mature technical equipment and excess capacity to countries and regions with good market sales, so that the excess capacity of enterprises can continue to play a role and continue to make profits. Secondly, adopting this investment model mainly uses domestic technology, equipment, raw materials, spare parts and other physical objects as capital contribution, and increases a small amount of foreign exchange funds, which can save foreign exchange expenditure and meet the actual needs of some enterprises. Third, enterprises can make overseas investment by means of overseas processing trade, and also make rational use of rules of origin to avoid and break through various trade barriers and effectively expand overseas markets.

Third, establish an independent brand investment model overseas.

Establishing independent brand investment mode overseas means that some China enterprises insist on establishing independent brands in the world, cultivating independent international famous brands through long-term investment and exploring overseas markets through consumers' recognition of independent brands in the process of overseas investment, whether by adopting greenfield investment or cross-border mergers and acquisitions.

This model is represented by Haier Group. In the process of overseas investment and transnational operation, Haier Group always takes building a world-famous independent brand as its core goal. As early as 1980s, Zhang Ruimin, general manager of Haier Group, put forward the strategy of "building a world-famous brand of Haier". After 1998, Haier fully implemented the internationalization strategy, making Haier an international Haier and growing from a famous brand in China to a world famous brand.

When Haier Group invested and built factories overseas, it insisted on playing Haier brand. The Chinese investor is Haier, the enterprise name is Haier, and the products produced and sold are Haier brand. From this perspective, overseas investment is not only a means for Haier to occupy the international market, but also an effective way for Haier to establish a world famous brand. Haier has endowed overseas investment with new functions and significance. The strategy of "easy before difficult" adopted by Haier is determined by the overseas brand building mode: Haier first enters the developed countries and regions with the heaviest weight in the international economic arena, such as Europe and the United States, so that local consumers can identify with Haier's brand with quality and obtain the status of local famous brand, and then enters the developing countries with brand advantages. Haier's "trinity" localization strategy of design, production and sales in the United States and Europe is precisely to establish a localized brand image in European and American countries, and then make Haier a world-famous brand. With the rise of local famous brands in the world, Haier's goal of building a world-famous brand is becoming a reality. On June 365438+1October 3 1 day, 2004, the report "100 Most Influential Brands in the World" compiled by World Brand Lab, one of the world's top five brand value assessment agencies, was published, and only Haier Group was selected in Chinese mainland, ranking 95th.

The main characteristics of overseas independent brand building investment model are very obvious. First, one of the core goals of overseas investment of enterprises is to build a world-renowned independent brand, whether it is greenfield investment or transnational mergers and acquisitions. The second is to adopt the strategy of "easy before difficult", which has two meanings: that is, enterprises adopting this model adopt the strategy of easy before difficult when entering the international market. For example, when Haier enters the international market, it first enters developed countries and regions that have weight in the international economic arena, such as Europe and the United States, and then relies on brand advantages to let local consumers identify with Haier's brand and obtain local brand status; At the same time, it is easy for enterprises to invest overseas in this mode, that is, to set up factories in developed countries first and then expand to developing countries. Because of the high positioning of establishing independent brands, enterprises are doomed to go through a long and difficult period in the initial stage of transnational operation, and then the brand can be gradually recognized, recognized and recognized by consumers, and then the situation can be opened. Second, "there is a market first, then there is a factory." For example, Haier first enters the overseas market by exporting its own brand products, and then invests in the factory after Haier's brand is recognized by local consumers and occupies a certain market share.

The mode of establishing independent brands for overseas investment has its advantages and constraints. In terms of advantages, first of all, this overseas investment model belongs to the type of "accumulating wealth and making little money". Although it is difficult to face the risk of success or failure at first, once a world-famous brand is built, it can be at the high end of the industrial chain in international investment and production, and can obtain excess profits, so that it can no longer work for foreign multinational companies and lay a solid foundation for the international operation and long-term development of enterprises. Secondly, this model organically combines the establishment of a unified private brand with the localization strategy. For example, in order to meet the different needs of different countries and regions, Haier has implemented a "trinity" localization development strategy of design, production and sales on the premise of unifying its own brands.

Judging from the constraints, this overseas investment model is quite challenging. First of all, enterprises are required to have strong capital and strong management ability, and brands with certain influence and popularity. At the same time, it also requires domestic investment enterprises to have professionals familiar with foreign domestic markets in order to successfully build and manage brands. Because it is difficult to run an enterprise overseas, it is even more difficult to create your own brand among the famous brands there, and it is even more difficult to shape a brand and establish and build it into a well-known brand locally. This requires domestic investment enterprises to have a high starting point. Under the current conditions, most enterprises in China do not have these conditions. Secondly, this overseas investment model is costly and risky. International famous brands are not formed overnight, but after decades or even hundreds of years of accumulation, they need a lot of long-term brand investment. It should be said that the value of brand is actually the return of brand investment. Then, overseas enterprises should not only invest in production, but also invest in brands, and the short-term benefits will definitely be affected by double investment.

Fourth, overseas M&A brand investment model.

The brand investment mode of overseas M&A is completely different from the investment mode of establishing independent brands overseas. It refers to the overseas investment mode of exploring the local market by acquiring well-known foreign brands and their brand influence. One of the main characteristics of this model is "buying shells for listing", that is, buying shells of well-known foreign local brands first, and then packaging products with this shell, in order to gain or save the recognition of local consumers and quickly enter the local market. Second, because most of the acquired brands are well-known brands of overseas companies that are poorly managed or bankrupt, they still have certain influence and sales channels, so this model saves time and expenses for overseas brand building and brand promotion. Third, this model is suitable for large enterprises with a certain capital base, good reputation and the ability to acquire and control well-known overseas brands.

The brand model of overseas M&A has become a unique overseas investment model of TCL Group. In September 2002, TCL International Holdings Limited, a subsidiary of China TCL Group, acquired the main assets of Schneider Electronics Co., Ltd., a century-old shop with a history of 65,438+065,438+03 years, which has a broad foundation in Germany and Europe and is known as "one of the three national brands in Germany", including "Schneider". Following the acquisition of Schneider in Germany, TCL Group indirectly acquired Govedio, a famous American household appliance enterprise, with millions of dollars in July 2003, which was a wholly-owned acquisition. Govidio is a channel company that manufactures video products such as video recorders and DVDs, with annual sales exceeding 200 million US dollars. After the acquisition of American company Govidio, TCL Group still plans to continue to use the brand of Govidio to sell color TV sets, disc players and other products in the American market, and strive to expand its share in the American market. Developing overseas markets with foreign brands has become a unique overseas marketing strategy of TCL Group.

At present, the most important advantages of China enterprises in international competition are cost advantage and product advantage, and the worst is brand advantage. Buying some famous foreign brands through overseas investment, learning from each other's strong points, is conducive to enhancing the competitiveness of China enterprises in the international market.

Verb (abbreviation of verb) Overseas brand export investment model

Overseas brand export investment mode refers to those enterprises with unique brand advantages in China, which do not invest too much money when investing overseas, but mostly expand in the form of brand equity joint venture or franchise and chain operation. At present, there are few China enterprises investing overseas by this mode, and the typical one is Beijing Tongrentang.

Tongrentang, a time-honored brand in China, has a long history of more than 330 years and has now become a modern large-scale Chinese medicine enterprise. Tongrentang's brand is well-known at home and abroad. As the first well-known trademark in China, its brand advantage is unique. At present, Tongrentang trademark has been protected by international organizations, registered in more than 50 countries and regions around the world, and registered the first mainland trademark in Taiwan Province Province; At the same time, Tongrentang's products sell well in more than 40 countries and regions around the world. Tongrentang has more than 300 retail and franchised pharmacies in China, and has set up more than 10 companies or pharmacies overseas. In 2002, it was the Chinese medicine enterprise that earned the most foreign exchange through export. Obviously, Tongrentang's well-known brand has become a unique advantage for Tongrentang Group to carry out transnational operations. Tongrentang's overseas investment, whether in the form of brand equity joint venture, sole proprietorship, franchise, chain and other ways, focuses on exporting Tongrentang, a time-honored Chinese brand, to overseas markets. Tongrentang's overseas brand export investment model is different from Haier Group, and the previous analysis is representative. The latter is to create a brand while "going out", while the former has become a well-known mature brand at home and abroad when "going out".

The prerequisite for adopting this model is that enterprises should have well-known brands and independent intellectual property rights, which is the "soft rib" of most domestic enterprises at present. Therefore, at present, most domestic enterprises do not have the conditions to adopt this model. However, with the acceleration of the process of China enterprises striving for famous brands, I believe this model will gradually become popular after a certain period of time, because many foreign multinational companies investing in China have adopted this model to enter the China market. Although China does lack world-famous brands as a whole, some enterprises in China have independent intellectual property rights and well-known trademarks in Chinese medicine, Chinese catering and other industries, and have core competitiveness in the world. Enterprises in these industries must pay attention to the comparative advantages and competitiveness of their own brands in transnational operation and overseas investment, and strive to become bigger and stronger as soon as possible and become multinational companies with unique industrial characteristics in China.

Six, overseas assets M&A model

The so-called M&A mode of overseas assets refers to that China enterprises as acquirers purchase all or major operating assets of overseas target enterprises, or purchase a certain number of shares to control or participate in the investment behavior. China enterprises generally do not undertake the original creditor's rights and debts and possible compensation of the target enterprise after the merger, but only undertake the original assets and business of the target enterprise. In April 2000, Wanxiang Group's overall acquisition of American Scheler Company was an overseas asset acquisition model. In addition, for example, Haier Group acquired Italian refrigerator factory, Beijing Dongfang Electronics Group acquired Hyundai Electronics, China National Offshore Oil Co., Ltd. acquired part of the rights and interests of Spanish Ripso company in five major oil fields in Indonesia, China Oil and Gas Co., Ltd. invested more than 200 million US dollars to acquire Indonesian oil and gas field assets, China Netcom (Hongkong) Company took the lead in acquiring Asian global telecommunications network assets, and Huali Group acquired Philips' CDMA mobile communication department in San Jose, USA. Shanghai Soap Group Co., Ltd.' s acquisition of the rechargeable battery production assets of SPS Company and Polystor Company in the United States also belongs to this investment model.

Founded in 1923, American Scheler Company is one of the three major parts suppliers in the American automobile market. As early as 1984, Scheler Company gave Wanxiang an order for 30,000 sets of universal joints, and Wanxiang started the road of automobile parts production. Wanxiang's products are sold in the American market under the trademark "Scheler". Since 1994, due to the increasingly fierce market competition and internal decision-making mistakes, the management of Scheler Company began to decline. Later, Scheler offered to ask for universal merger. As a result, Wanxiang spent $420,000 to acquire Scheler's brand, technology patents, special equipment, market network and other major assets, while the plant and equipment were bought by another company. The most direct effect of the acquisition of "Scheler" is that Wanxiang will increase its sales in the American market by at least $5 million every year. The far-reaching significance lies in that Wanxiang's products are supported by local brands, technologies and production bases due to the acquisition of "Scheler".

Investing overseas by means of asset merger and acquisition can prevent the target company from transferring the original debt and "contingent debt" to our enterprise. Therefore, when Chinese enterprises make overseas investments by means of mergers and acquisitions, if it is considered that the debts of overseas target enterprises may be unclear, and compensation may be caused by providing guarantees to others after the transaction is completed, they can adopt the way of asset acquisition. In addition, in the mode of asset acquisition, as long as the target company has enough quorum of shareholders to approve the asset sale, it can be acquired, even if the minority shareholders of the target company want to obstruct it, it will not affect the actual acquisition of our company.

One limitation of this method is that we need to invest more working capital, because most of us buy it in cash. Second, China M&A enterprises should integrate their target enterprises after the completion of M&A to achieve the purpose of overseas M&A, so they should have strong management ability and integrated talents. Third, any omission in mastering the debt, tax and legal proceedings of the target enterprise may form a merger trap and restrict the realization of the merger goal.

At present, the main mode of international direct investment business is M&A investment, rather than new investment mode (or greenfield investment mode), so it should be said that overseas assets M&A mode is a popular overseas investment mode. In addition, the asset M&A model deals with a large number of unlisted enterprises, and listed companies are only a small part of overseas enterprise groups, so this model has a broader application space than the overseas equity M&A model and is more suitable for the majority of small and medium-sized enterprises. With the continuous expansion of China's overseas investment scale, M&A investment will increasingly become an important way for enterprises to invest overseas, among which asset M&A mode will be selected by more enterprises.

Seven, overseas equity M&A model

M&A mode of overseas equity refers to an overseas investment behavior in which China companies purchase voting shares issued by overseas target companies (usually listed companies) or subscribe for their newly-increased registered capital, and obtain a certain proportion of shares, thus exercising business control over the company. Under the overseas equity M&A model, the object of the transaction is the equity of the overseas target company, and finally the control right of the target company is obtained. As acquirers, China enterprises have become new shareholders of overseas target companies. In recent years, there are more and more cases in which domestic enterprises choose equity mergers and acquisitions to invest overseas, such as Wanxiang Group's 200 1 acquisition of American UAI company listed on NASDAQ, and Beijing Dongfang Electronics Group's acquisition of listed company TPV Technology in 2003.

In August 2003, Beijing Dongfang Electronics Group acquired more than 356 million shares of TPV Technology Co., Ltd. listed in Hong Kong and Singapore for HK$ 65.438+05 billion, and became the largest shareholder of TPV Technology with more than 26.36% shares. TPV Technology is a high-tech enterprise specializing in R&D, manufacturing and selling CRT monitors, LCD monitors, PDP monitors and LCD TV products. Through this overseas equity acquisition, Beijing Dongfang Electronics Group will have the technology and production capacity from TFT-LCD panel to display machine, as well as the global market, R&D and service system, thus laying the strategic goal of "improving the core competitiveness of the industry through industrial integration".

Under the equity M&A model, our M&A enterprises can be listed companies or non-listed companies as investors, but overseas target enterprises are generally listed companies listed on the Stock Exchange. The implementation process of equity merger and acquisition is complicated, but the legal procedure is simple. In legal procedure, as long as the acquirer obtains the equity advantage, the directors and supervisors can be re-elected. After the completion of the equity acquisition, the overseas target company exists as an overseas subsidiary of our company and has an independent legal status. Because the signatories of the sales agreement are different shareholders of our acquisition enterprise and overseas target company, the trading decision of this investment model is decentralized.

Investing by equity merger and acquisition, because it does not increase the tax expenditure of overseas target companies and their shareholders, the acquisition cost is low; At the same time, we can use equity merger and acquisition to obtain the controlling stake of the target company, so that the target company can form a whole with our company in operation and serve our company's internationalization strategy. But with this model, under the condition of equity acquisition, our enterprise should be responsible for all debts of overseas target companies. In addition, due to the decentralized decision-making of M&A transaction, it may encounter obstruction from minority shareholders.

With the development of international securities market, the way of equity merger and acquisition is becoming more and more popular. Chinese enterprises can not only expand production scale and market share, but also realize economies of scale, save transaction costs and gain the benefits of internalization of production factors by adopting equity mergers and acquisitions to invest overseas. Through equity merger and acquisition, our company controls "big capital" with "small capital", obtains the control right of overseas target companies, realizes the rolling development of enterprise capital, and quickly realizes the goal of overseas expansion of enterprises; Through equity mergers and acquisitions, we can also achieve the goal of indirect overseas listing of Chinese enterprises, that is, buying shells or backdoor listing.

Eight, the national strategy leading investment model

The national strategic leading investment mode refers to the overseas investment of some large energy enterprises in China, which is mainly promoted by the government, focusing on the macro interests of the country and for the sustainable development of the national economy and the needs of national energy security. Investing in overseas energy development is an important step to implement the national energy security strategy. This kind of investment requires huge capital investment, long payback period and high investment risk, which needs the government to promote and bear the main risks. In this model, both newly-built overseas enterprises and overseas enterprises established through assets or equity mergers and acquisitions are included. At present, this investment model is mainly reflected in the energy strategy, and will be extended to the resource strategy in the future.

The representative enterprises of overseas investment in this mode are China's three major oil giants, namely Sinopec, PetroChina and CNOOC. Petroleum energy is the most important energy to ensure China's economic development, and overseas energy investment based on national strategic leading mode is an important way to solve the energy bottleneck. In recent years, the three major oil giants have actively implemented the "going out" strategy proposed by the state, focused on the country's long-term energy security, and successively invested in the development of overseas oil and gas fields, and started more than 20 projects. Many cooperation projects between the three oil giants and foreign countries adopt the way of "oil sharing", that is, China oil enterprises participate in or invest in local oil construction projects and take a certain share of the project oil production every year. This way ensures the stability of oil import quantity and price to a certain extent.

Overseas investors are generally large state-owned or state-controlled key energy enterprises, with strong government policy support, guaranteed sources of funds and strong ability to resist risks, which is conducive to ensuring the implementation of the national energy security strategy. Because the macro interests of implementing the national energy security strategy are put in the first place, it can serve the national strategy more effectively than other investment models that put the maximization of enterprise profits in the first place. China's per capita resources are low, and the supply situation of some natural resources, such as oil, is becoming more and more severe. In order to maintain the stable growth of domestic economy, China must participate in the international energy production division through overseas investment, make the best use of overseas energy and implement the national energy security strategy. At present, China's largest overseas investment occurs in the natural resources industry. For a long time to come, overseas investment under the leadership of national strategy will remain one of the important ways for China enterprises to invest overseas. However, this investment model is generally not adopted in non-energy industries, and it is unrealistic for large non-state-owned energy enterprises to adopt it at present because it requires a lot of investment.

Nine. Overseas R&D investment model

Overseas R&D investment mode refers to some high-tech enterprises in China, rather than traditional manufacturing enterprises or resource development enterprises. By establishing overseas R&D centers and utilizing overseas R&D resources, they internationalize R&D, acquire international advanced independent intellectual property rights, and combine foreign direct investment with service provision. Huawei Technologies Co., Ltd. ("Huawei") pioneered this overseas investment model.

Huawei has established 8 regional departments and 32 branches around the world, and established a number of overseas R&D centers in Silicon Valley, Dallas, Bangalore, Moscow, Sweden, Russia and other places, attracting outstanding scientific and technological talents at home and abroad to conduct R&D through various incentive policies and keeping abreast of the latest developments in the industry. According to the statistics of China National Intellectual Property Administration, by the end of 2002, Huawei had applied for 265,438+054 patents, ranking first among domestic enterprises in invention patents, while Huawei had applied for 65,438+098 international and foreign patents, ranking first among enterprises in developing countries. As a well-known trademark in China, Huawei has registered more than 600 times in 86 countries and regions. Huawei relies on the global technology development network and uses R&D institutions all over the world to provide high-quality products and services, faster response speed and better performance price, helping global operators to establish a sustainable and profitable operating model. Now, Huawei's equipment has been running around the clock in more than 40 countries in Africa, South America, Southeast Asia and Eastern Europe. By mastering more and more core technologies, Huawei has been able to compete with multinational companies in the world telecom market.

In order to participate in international competition and invest overseas, high-tech enterprises must have strong technical development strength and innovation ability and have independent intellectual property rights. However, the weakness and weak link of high-tech enterprises in China lies in the general lack of independent intellectual property rights and the serious shortage of technological innovation ability. To solve this problem, we can learn from Huawei's practice, invest in overseas R&D, establish R&D centers, utilize overseas R&D resources, promote R&D internationalization, obtain international advanced independent intellectual property rights, and enhance the international competitiveness of science and technology.