Chinese Small and Medium Enterprises Transnational Operation Strategies in the Post Crisis Era

Article excerpt

Abstract

Implementing transnational management strategy is the important way of Chinese small and medium enterprises development that get rid of excessive competition in domestic, bypass the non-tariff barriers, and expand overseas markets. At present, the international operation of Chinese small and medium enterprises is in an early stage, when they face the narrow financing channels, the non-perfect foreign investment enterprises management mechanism and many other factors, how to overcome the international financial crisis, especially how to response to the changes of development environment in the post economic crisis era, they are the main problem which Chinese small and medium enterprises are facing. This article detailed analysis of Chinese small and medium enterprises transnational operation current situation in post economic crisis era, then proposed the appropriate countermeasures.

Key words: Post economic crisis era; Small and medium enterprises; Multinational operation strategy; Localization

SUN Jing (2012). Chinese Small and Medium Enterprises Transnational Operation Strategies in the Post Crisis Era. CrossCultural Communication, 8(3), 81-86. Available from URL: http://www. cscanada.net/index.php/ccc/article/view/j.ccc.1923670020120803.3500 DOI: http://dx.doi.org/10.3968/j.ccc.1923670020120803.3500.

INTRODUCTION

World economic is entering the post financial crisis era now. The financial crisis in 2007 had a tremendous impact on over-reliance on the export-oriented economy of China, since China's economy is still not entirely free from the shadow of the financial crisis. To date, western financial crisis directly affect Chinese economy through impacted on China's foreign trade, especially on transnational operation of Chinese small and medium enterprises have a huge impact, also led to sharp changes in the development environment of small and medium enterprises of China, how to overcome the international financial crisis, which seeks its own development, it is the main problem which small and medium enterprises of China is facing, particularly in post economic crisis era, in the background of the global economy is beginning to recover, how to change the mode of transnational management of small and medium enterprises, and to achieve industrial upgrading, became an urgent need to study the issue of improving international competitiveness.

SME not only is China's main economic power, is also an important subject of transnational business. Small and medium enterprises of China have more than 10 million, accounting for 99% of the total number of enterprises. SME created GDP accounted for 60%, paying taxes of accounting for 50%, invention patent of accounting for 66%, research and development of products for 82%, employment of the population in cities and towns to absorb 75%. Transnational management refers to the enterprise carry out resources into activities beyond the sovereignty of a country, including goods, services, capital and other forms of international transfer and transformation of economic resources. Many of China's export commodities are produced by SME. Transnational management can Chinese small and medium enterprises rid the simple geographical boundaries, growth-oriented international enterprises in the whole world. However, Chinese small and medium enterprises are in an early stage of the international operation, is facing with many problems.

1. THE NECESSITY OF CHINESE SMALL AND MEDIUM ENTERPRISES IMPLEMENTATION TRANSNATIONAL MANAGEMENT STRATEGY

1.1 Implementation of Transnational Management Strategy is SME Get Rid of Excessive Competition in Domestic, Bypassing the Non - Tariff Barriers, and Important Way to Expand Overseas Markets

In post crisis period, survival and development of Chinese SME is facing more serious challenges, first, the pressure of competition greater, competitors more powerful. In order to overcome the economic impact on China, the Chinese market must be more opened, Chinese government will give preferential treatment to foreign enterprises and foreign goods, "vulnerable" of SME in the market competition will face greater pressure of competition after losing Government protection. …