Intermediaries can help ease culture shock

Intermediary service providers should play a better role in assisting Chinese enterprises making outbound investment, said Liu Dali, partner of Jun He Law Offices, at the China (Suzhou) Outbound Investment and Services Forum held in Suzhou, Jiangsu province, on Tuesday.

Statistics indicate that Chinese enterprises have set up operations in more than 100 countries to date, but many of them have encountered difficulties in adjusting to the different operating environments.

"Many Chinese companies feel bewildered about the legal requirements when expanding overseas, since different countries have different rules and laws. Various economies have different regulations on foreign exchange, finance, labor and anti-trust, for example," Liu said.

It is not uncommon for Chinese companies to suffer from "culture shock" when going overseas.

"That is why they need intermediary institutions to help them solve the problems," he said.

What Chinese companies going abroad need are intermediaries such as financial consultants, law firms, accountants, technical and industrial consultants that can help them navigate the change in business environment, Liu said.

These intermediary entities should also create value and share the mission with enterprises by providing high-quality services, he said.

Chinese enterprises making outbound investments should not just aim for more profits, technology, and market share, they should also present Chinese values and culture, said Liu.

In fact, as Chinese companies make outbound investments, such intermediaries are going with them, which was unimaginable 20 years ago.

(China Daily 12/18/2015 page20)