Most popular caterpillar Chen Qihua China is still

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Caterpillar chenqihua: China is still a land of opportunity for American enterprises

caterpillar chenqihua: China is still a land of opportunity for American enterprises

China Construction machinery information

will caterpillar, a manufacturer of American construction machinery and power systems with trouble free operation of more than 10000 hours, become a "Chinese company"? For Chen Qihua, the company's global vice president, this is not a matter of ownership, but an issue of investment

"in 40 years, caterpillar will undoubtedly become a great company in China, and it will become a Chinese company." Chen Qihua, who is also the chairman of caterpillar (China) Investment Co., Ltd., said

caterpillar began to enter the Chinese market 40 years ago. In Chen Qihua's view, 40 years later, caterpillar will still be committed to its development in China, and by that time, where its investors come from and the qualified candidates needed by the organization are no longer so important

Chen Qihua said that caterpillar will accelerate the localization of talents in China in the future and take China as an important strategic base for the development of global business. Three years ago, 65% of caterpillar China's leaders above the middle level were Chinese. This year, the company plans to increase this proportion to 80%

as the world's largest manufacturer of construction machinery and mining equipment, Caterpillar's performance has been affected by China's economic slowdown, but it has no intention of divesting in China. On the contrary, it is still optimistic about China's long-term prospects and new opportunities brought by economic transformation

like Caterpillar, many American companies are feeling the "pain" of China's economic adjustment and changes in the policy environment, but as Chen Qihua said, China is still their "land of opportunity"

according to a survey released by the American Chamber of Commerce in China this year, due to the slowdown in revenue and profits, 2014 was the "most challenging year" for American companies in China in recent times

however, the survey also shows that nearly 70% of member companies remain optimistic about the growth of China's domestic market in the next two years, and 44% plan to launch new products or services in China this year

in terms of horizontal comparison, China is still the most attractive for foreign investment. According to the report released by the United Nations Conference on Trade and development in January this year, China replaced the United States as the world's largest destination for foreign direct investment in 2014

the business environment in China is indeed changing, but it is not necessarily changing in a bad direction

Chen Qihua believes that China's economic adjustment is only temporary, and China is still full of opportunities, but only those companies that adapt to the changes in the market environment in time will succeed. If they do not understand the new requirements of China's development and do not have competitive products and business models, they will be difficult to gain a foothold in the Chinese market

"sometimes, multinational companies can't develop their business in Chinalco as a young metal country. They can't blame the government. They should think about their own problems." He said, "the times are changing, and the market competition pattern is also changing."

change with China

in 1975, caterpillar sold 38 pipe hangers to China, worth $3.8 million, which was the company's first order in China. At that time, before the formal establishment of diplomatic relations between China and the United States, the caterpillar team and Chinese representatives had to meet and talk frequently in Ottawa, Canada. It took three years to reach an agreement

today, caterpillar has 29 manufacturing plants, 4 R & D centers and 13000 employees in China. Its production base in Xuzhou has become the "flagship factory" with the most comprehensive excavator models and the most advanced technology, and is expected to become caterpillar's largest excavator manufacturing base in the world

after the financial crisis hit the global economy hard, China's economy, which has been growing rapidly for decades, slowed down. The construction machinery industry, which has benefited from the prosperity of investment and export, has experienced a cold spell, and caterpillar is also difficult to survive

according to the company's financial report, Caterpillar's sales in the Asia Pacific region fell 30% year-on-year in the second quarter of 2015, mainly due to the contraction of the construction machinery market in China and Japan

but in Chen Qihua's eyes, the changes that are taking place in China's economy are a necessary process and also indicate new opportunities. After years of rapid expansion, there are as many as 50 or 60 construction machinery enterprises in China. Economic adjustment will force excess and backward production capacity to be eliminated, which will instead benefit competitive enterprises

"after restructuring, this industry and China's overall economy will gradually move towards sustainable development. If there is a high-quality and sustainable development, we also expect to see 6% and 7% GDP growth." He said

although China's economy continues to face downward pressure, Chen Qihua said that once the process of adjustment and reform is completed, more opportunities will be created. He hoped that the government would adhere to this process

where are the new opportunities? Caterpillar is aiming at the vast space for China to improve infrastructure: high-speed rail, western construction, urban underground pipe gallery, are all places where engineering machinery can be used. The "the Belt and Road" strategy proposed by China will create a large number of construction engineering needs. The government's support for the service industry is also a great benefit. For example, the measures just introduced to promote the development of the financial leasing industry will help caterpillar's customers reduce financing costs

China's requirements for sustainable development and high-quality growth also benefit caterpillar. As more customers need environmentally friendly and efficient generator sets and power systems, the company's energy and transportation business has increased by an average of more than 11% in the past five years

Looking back on his 21 years of working in caterpillar, Chen Qihua felt that the Chinese government welcomed caterpillar and believed that the government would continue to support the development of foreign-funded enterprises in China, because they have become an important part of China's economy

he observed that the Chinese government is implementing a "negative list" management of foreign-funded enterprises, gradually reducing restrictions on foreign-invested projects and reducing tariffs, while the requirements for foreign investment in quality, technology and environmental protection are higher than before. He commented, "this is a good thing."

"with the development of China's economy, the requirements for foreign-invested enterprises will be different at different stages." He said

in recent years, Microsoft, Qualcomm and other American companies in China have been involved in the anti-monopoly investigation of the Chinese government, which has attracted the attention of foreign media on China's opening-up attitude. In fact, if you observe more, you will find that China's anti-monopoly law enforcement has never been different due to the different countries and nature of enterprises. The companies under investigation and law enforcement include not only foreign enterprises, but also Chinese state-owned and private enterprises

By comprehensively deepening reform and governing the country according to law, China is advancing its opening-up to a higher level. In April this year, the revised catalogue for the guidance of foreign investment industries came into force, reducing the number of restricted items from 79 to 38. China is also formulating a draft foreign investment law, which plans to change the previous case by case approval system to the management mode of pre admission national treatment plus negative list

data show that China's absorption of foreign investment has remained good this year. In the first eight months, the number of foreign-invested enterprises established nationwide increased by 10.7% year-on-year, and the actual amount of foreign capital used increased by 9.2% year-on-year. Just in August, Coca Cola announced that it would continue to increase its capital in the Chinese market by $4billion with its partners in China in the next three years

Chen Qihua believes that the opening-up of the Chinese government in industrial policies and market access is gradually deepening. p>

"there are some differences between China and the United States, but the differences are far less than cooperation." Chen Qihua said

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