An over view of the world economic pattern shows that when
an enterprise expands its overseas markets with foreign direct investment.
The enterprise can avoid international trade barriers and enjoy geographical
and policy superiority in the world economy.
The European Union, with 25 member states (27 in 2007), has a total area
of 4,650,000 square kilometers and a total population of 520,000,000 with
an average income of 20,000 Euro dollars per capita. But the unbalanced
level of economic development within the Union offers a great many business
opportunities. So far China·¯s economic exchanges with the European Union
are limited to international trade, but the factors of anti-dumping, technical
barriers and custom tariffs will make it difficult for Chinese enterprises
to enter the market of the European Union directly. Against this background,
Chinese enterprises may follow the way of the transnational companies of
the advanced countries by making investments in the host country or neighboring
countries and by taking advantage of the cheap labors, rich natural resources
and favored investment policies, setting up production bases as a joint
venture or foreign wholly owned enterprise so as to enter the market of
the target country. As the main initiator of the program, F&J International
Group, in cooperation with his strategic partners, has made investments
in Romania and set up a Europe China Enterprise Park in Europe, in which
the economic efficiency has been exploited to the utmost by way of investment
centralization. With the successful experience of the first phase of the
program, F&J Group will increase its investment in the second phase
of the program, aiming to establish it as the production base and logistics
distribution center for Chinese enterprises to enter the market of the European
Union.
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