Zhejiang Enterprises Staged The World'S Largest Seamless Underwear Merger

Since the second half of last year, international commodity prices have dropped significantly, which provides favorable opportunities for Chinese enterprises to expand overseas. At the same time, Chinese manufacturing enterprises are also facing the opportunity to extend the industrial chain and expand the market. On March 16, the Ministry of Commerce released the Measures for the Administration of Overseas Investment on its official website, announcing a number of measures taken by the Ministry of Commerce to deal with the crisis and promote the economy, and encouraging enterprises to "go global" by reducing the approval authority and procedures for overseas investment. The reporter learned in the interview that many powerful enterprises are ready to take the opportunity of the financial crisis to "go out", but it is not known whether the financial crisis has bottomed out, and most of them remain on the sidelines. Xu Jianxin, director of the Foreign Economic Department of Hangzhou Foreign Economic and Trade Cooperation Bureau, said that at present, all policies are "comma" rather than "full stop", and overseas investment should be cautious. Chinese enterprises are busy investing overseas Zhejiang enterprises starred in "the world's largest seamless underwear merger" On March 11, more than 500 employees of two seamless underwear enterprises in New York and Los Angeles returned to work normally. More than three months ago, these employees once faced the danger of bankruptcy, layoff and unemployment of the company. Today, more than 20 shareholders of these two American companies have been replaced by Zhejiang Meibang Textile Co., Ltd., the boss from China. At present, the production plan of "Meibang Textile" has been arranged to 2010. Because of the largest seamless underwear acquisition in the world, Zhuji, a private enterprise founded in 2003, has become the world's largest multinational group in the industry. It is understood that before the merger, these two American companies with a history of 15 years ranked the top three in the industry, and "Meibang Textile" ranked the fourth in the world. The reason why "Meibang Textile" can "eat big fish with small fish" lies in the industry change brought by the global financial crisis. It is reported that the cooperation between Meibang Textile and two American companies began last October. In consideration of the cancellation of textile quota this year, "Meibang Textile" signed an intentional agreement with two American companies for OEM. By last November, two American companies had announced to cancel their procurement plans. Because of the spread of the financial crisis, the loan banks of the two American companies fell into financial crisis and withdrew loans, leaving the two companies exhausted in liquidity. "Meibang Textile" took the opportunity to buy all their shares. Wang Ling, general manager of "Meibang Textile", believes that it is now a good opportunity for Chinese enterprises to "bargain" in overseas acquisitions. In fact, overseas "bottom hunting" actions of Chinese enterprises have been frequent recently. According to a report published by Thomson Reuters, the world's largest financial information provider, as of February 17 this year, when the scale of global cross-border mergers and acquisitions fell by 35% year on year, the total amount of overseas acquisitions by Chinese enterprises increased by 40% year on year, reaching US $21.8 billion, second only to Germany. Overseas investment can be approved within 3 days at the earliest The Measures for the Administration of Overseas Investment came into force on May 1 In the face of overseas investment opportunities brought about by the global financial crisis, the Ministry of Commerce released the Measures for the Administration of Overseas Investment on its official website on the 16th. The Measures shall come into force as of May 1 this year. At the same time, the previous Provisions on the Approval of Overseas Investment to Start Enterprises and the Notice of the Ministry of Commerce and the Hong Kong and Macao Office of the State Council on Printing and Distributing the Provisions on the Approval of Mainland Enterprises' Investment to Start Enterprises in Hong Kong and Macao Special Administrative Regions shall be repealed. Compared with the current regulations, the Measures for the Administration of Overseas Investment only retains the approval authority of the Ministry of Commerce for a few major overseas investments, including overseas investments of more than US $100 million, foreign investments in specific countries, etc. Based on the number of approved applications in 2008, about 85% of the overseas investment approval matters will be handed over to the provincial competent commerce department in the future. At the same time, the approval process will be further simplified. Most overseas investment enterprises can obtain the Certificate of Enterprise Overseas Investment within 3 working days by submitting only one application form. However, according to the previous level by level declaration system, it takes more than one month for formalities to be approved. In addition, the Certificate of Overseas Investment of Enterprises also highlights the management focus, strengthens guidance services, proposes code of conduct, establishes an "information service system" to provide timely consultation and information services for overseas business institutions, and guides enterprises to abide by the laws and regulations of the host country and assume social responsibilities. Yao Jian, spokesman of the Ministry of Commerce, said that under the current situation of dealing with the international financial crisis, further expanding foreign investment is of great significance for promoting economic growth. The Ministry of Commerce recently formulated the Measures for the Administration of Overseas Investment, which will further reform the management system of overseas investment, promote the facilitation of overseas investment, and strongly support Chinese enterprises to "go global" to participate in international economic cooperation and competition. Policy is "comma" rather than "full stop" Hangzhou enterprises should be cautious in "overseas bottom hunting" There are many enterprises like "Meibang Textile" that are approaching the "transnational dream" step by step. It is understood that overseas investment of Chinese enterprises has not slowed down due to the global economic downturn. At present, overseas investment of resource and manufacturing enterprises is particularly active. According to the latest data from the Ministry of Commerce, the foreign direct investment of Chinese enterprises in 2008 was 52.15 billion US dollars, up 96.7% year on year. The turnover of foreign contracted projects reached US $56.6 billion, up 39.4% year on year. In January and February 2009, Chinese enterprises completed a turnover of 7.96 billion US dollars in overseas contracted projects, up 24.8% year on year. For the policy of encouraging enterprises to "go global" in the Measures for the Administration of Overseas Investment issued by the Ministry of Commerce, the insiders believe that all the current policies are "comma" rather than "full stop". The reporter learned in the interview that many powerful enterprises are ready to take the opportunity of the financial crisis to "go out", but at present, we do not know whether the financial crisis has bottomed out, and most of them hold a wait-and-see attitude. Xu Jianxin, head of the Foreign Economic Department of Hangzhou Foreign Economic and Trade Cooperation Bureau, said: "At present, Chinese enterprises are constantly strengthening their ability to invest abroad. The investment mode has expanded from creation investment to cross-border mergers and acquisitions, equity participation, overseas listing and other forms. The investment field has also expanded from simple processing to resource development, manufacturing research and development and many other fields. A substantial delegation of approval authority for overseas investment will greatly improve the efficiency of enterprises' overseas investment and reflect the determination of the state to support enterprises' going global. " Xu Jianxin said that although overseas investment has won others' brands and channels, it should also take into account some risks that may exist in other countries, such as laws and regulations, customs and culture, market demand, etc., and enterprises need to be cautious in speeding up "overseas bottom shopping".     For more clothing investment information, click here to enter   Editor in charge: Wang Xiaonan