Obstacles and Countermeasures of Chinese Enterprises' Foreign Agricultural Investment

Since the state put forward the strategy of "going out" in agriculture, Chinese enterprises have made great achievements in extensive agricultural investment in Southeast Asia, Africa, Russia and other countries and regions. But on the whole, China's agricultural "going out" progress is still relatively slow, obviously lagging behind the mining, construction and other industries, but also lagging behind Japan, the United States and other economically developed countries. In order to make an in-depth study of the problems and obstacles faced by Chinese enterprises in foreign agricultural investment, in 2013, the author conducted a case study on the foreign agricultural investment of 36 enterprises in Shandong, Zhejiang, Guangxi and Heilongjiang provinces. Countermeasures and suggestions to promote enterprises' foreign agricultural investment are put forward.

The main problems and obstacles faced by Enterprises in Foreign Agricultural Investment

(1) the restriction of the enterprise itself

1. The ability of some enterprises to resist risks is relatively weak. From the situation reflected by the survey, the development cost of agricultural projects is relatively high, the recovery cycle is long, facing climate, market, international political changes and other risks, the ability of some enterprises to resist risks is relatively weak.

two。 Enterprises are short of talents suitable for international operation. At present, the more prominent problems are: (1) lack of high-end talents with international operation and management ability; (2) lack of agricultural technical personnel who are willing to work abroad; (3) lack of talents in small languages.

3. Facing fierce competition from enterprises in developed countries. Enterprises in the United States, Japan, South Korea and other countries and regions generally have a large scale and strong anti-risk ability, which causes greater competitive pressure on Chinese enterprises' foreign agricultural investment.

(II) obstacles to domestic policy

1. The examination and approval procedures for investment projects are complicated, with many links and long time. According to the survey enterprises, the examination and approval of foreign agricultural investment projects is complex, takes a long time, consumes a lot of energy, affects the implementation of the project, and is easy to miss the market opportunity.

two。 The use of domestic seeds abroad is restricted by the state seed export administration. According to some survey enterprises, Cambodia and other Southeast Asian countries and the Russian far East lack high-quality rice seeds, but most of the advanced and commonly used seeds in China are not listed in the "can be exchanged" catalogue and cannot be exported. it has affected the economic benefits of Chinese enterprises' overseas investment in planting projects.

3. The return of agricultural products such as grain and cotton is restricted by the administration of import tariff quotas. According to the survey, it is difficult for most enterprises engaged in grain and cotton cultivation abroad to obtain import quotas. According to some survey enterprises, in order to send overseas-invested grain and cotton back to China for sale and processing, they often turn to relevant enterprises to buy import quotas for grain and cotton.

4. The shipment of produced products back to China is restricted by animal and plant inspection and quarantine management. For example, because there are no bilateral quarantine agreements between China and some countries, the rice invested and produced by Chinese enterprises in Russia can not be shipped back to China for sale through normal channels.

(3) constraints of domestic support service system

1. Investment information service is not in place. From the situation reflected in the survey, there are few enterprises that obtain information on foreign agricultural investment from the government system, and many enterprises give up foreign agricultural investment because it is difficult to collect enough information.

two。 It is difficult for enterprises to carry out loans for foreign agricultural investment projects. Judging from the situation reflected in the survey, the scale of state policy loans is too small and is mainly concentrated in a small number of large enterprises, so it is difficult to solve the problem of loans for foreign agricultural investment projects of most enterprises.