1. The concept of overseas investment
On March 16, 2009, the Ministry of Commerce promulgated the "Foreign Investment Management Regulations", in which Article II clearly states: The term of foreign investment, is the legally established enterprises in china (hereinafter referred to as enterprises), through setup, mergers and acquisitions, establish non-financial enterprises or obtain ownership, control, operation and management rights of non-financial enterprises overseas.
2. Foreign Investment Methods
2.1 Trade companies and offices
Relying on the trade partners in different counties and regions, such companies can obtain market information, directly get orders which can both expand the exports and maximize the profits. This kind of foreign investment is especially suitable for those who start to “going out” and are not familiar with the international market.
The characteristics of such foreign investment: the investments are mostly in cash, the scale are relatively small, and average investment amount is 719,000 U.S. dollars.
2.2 Foreign productive enterprises or industrial parks
Through setup of productive enterprises or industrial parks overseas, the investors can not only enjoy support policies, reduce production costs, improve production efficiency, but also expand exports through the third counties.
Features of such overseas investment: mostly equipment as investment; the scale of investments are relatively large; market risk is relatively high, Registration need long time.
2.3 Merger and Acquisition
Through merger and acquisition of foreign enterprises, the investors can directly use the marketing network of the object enterprises, improve their marketing ability and expand market share. At the same time, through M&A enterprises may participate in international economic at a higher level .
Characteristics of investment: medium investment scale; market refined; less investment risk..
2.4 overseas resource development
Features of such overseas investment: mostly investing in cash,,large-scale investment and high return.