The hottest Sany acquisition of elephants has beco

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Sany's acquisition of elephants has become a symbol of Europe's opening up to Chinese investors

Sany's acquisition of elephants has become a symbol of Europe's opening up to Chinese investors

China Construction machinery information

the New York Times published an article entitled "weak growth in Europe and looking forward to China's investment pull" on October 23. The article said that Europeans need help from the Chinese to cope with weak economic growth, aging population and tepid business investment. In addition to capital, Chinese investors can also help European companies better grasp opportunities in China and other Asian markets. The acquisition of Putzmeister (commonly known as "elephant") by Sany Heavy Industry in 2012 has become a symbol of Europe's increasing openness to Chinese investors

the full text is excerpted as follows:

Sany group, a construction equipment manufacturer headquartered in Changsha, Hunan, acquired Putzmeister in 2012. This transaction has become a symbol of Europe's increasing openness to Chinese investors

after being merged, the company seems to have achieved success; Chinese Premier Li Keqiang received a warm welcome when he visited Berlin and Hamburg this month, which is also one of the reasons. This material has potential utilization prospects in the fields of surface coating protection, biomedical materials, lithium batteries, aerospace and so on. Although there are still some frictions, Germany and Europe have largely overcome their fear that Chinese investors would steal technology, close expensive European factories and transfer production links to China

"at present, the world economy is in trouble, but the economic cooperation between Germany and China is developing well, which is a sign of stability." German Chancellor Angela Merkel said that she had just announced that China and Germany have signed a series of new treaties and commercial contracts, including Airbus' aircraft orders. On October 10, she also said that the joint venture contract between Volkswagen and China's FAW Group was extended to 2041

one of the reasons why Europeans have become more welcoming to the Chinese is that they need help to cope with weak economic growth, aging population, and tepid business investment. In addition to capital, Chinese investors can also help European companies better grasp opportunities in China and other Asian markets

this is partly the reason why Europe has surpassed the United States to become China's largest trading partner, and Europeans seem to want to go further. "It can be said that Europe is welcoming Chinese investment," said Jeremy Clegg, a professor at Leeds University Business School who has studied this subject

another reason why Chinese people are popular is that, at least so far, they have proved to be relatively low-key and almost invisible business executives. UWE misselbeck, head of human resources in Putzmeister, said that there was only one Chinese manager and five Chinese interns at the company's main plant in elsita

before Li Keqiang's visit to Germany last month, miselbeck said when attending an event organized by KPMG in Frankfurt, "we are still eating with knives and forks." The meeting was part of a publicity campaign aimed at refuting the long-standing stereotype of Chinese bosses

Putzmeister specializes in manufacturing concrete casting equipment for construction sites. In 1986, the equipment was used to control nuclear radiation in Chernobyl, now in Ukraine. In 2011, it was used in Japan, but it was also used to extract a large amount of water to cool the failed reactor of Fukushima nuclear power plant

when miselbak mentioned the acquisition of Sany Heavy Industry, he said, "Chinese colleagues are very enthusiastic about us." He compares them with American investors who "want to tell you how the world works", showing his appreciation for the former

so far, the United States is still the largest source of direct investment in Europe. In 2012, its investment accounted for more than one third of the total investment, while China's investment accounted for 2.6%. 2012 is the latest year when complete information can be obtained

however, the growth rate of investment in China is much faster than that in other countries. According to the official statistical agency Eurostat, the value of China's shares in the EU more than tripled from 2010 to 2012, rising to 26.8 billion euros (about 208.5 billion yuan at the current exchange rate)

Chinese companies invest in the ports of Genoa, Naples and Athens, Italy. They acquired Italian steel manufacturers, German outdoor furniture manufacturers, and Hungarian chemical manufacturers. On October 11, the German side held a meeting in Hamburg with the theme of "China meets Europe" to welcome Premier Li Keqiang. According to the local chamber of Commerce, there are more than 500 Chinese companies in Hamburg and surrounding areas

according to KPMG, as the Chinese government simplifies the approval process that domestic companies must pass before making overseas investments, investment from China will further increase

Chinese investors have carried out many high-profile transactions and are willing to buy troubled companies, so they get attention. Zhejiang Geely Holding Group acquired Volvo cars from Ford Motor in 2010, which is one of the most concerned acquisitions

in August this year, Volvo launched its first new model in Stockholm since it was owned by a Chinese company. The Chinese side is very low-key and almost invisible. There are no Chinese managers on site. The CEO of Volvo introduced the sports utility vehicle xc90de, saying that this new car is the crystallization of Swedish aesthetics and engineering

Hakan Samuelsson, CEO of Volvo cars, suggested that compared with Ford, the company has more freedom after being owned by Geely

"they have given us a new role: an independent company," Samuelson said of Geely at a meeting with a small group of people who remember that China's development is still in an important period of strategic opportunities. "We are not a department that can only implement the orders of a core institution."

China has become the largest market for Volvo cars, which also proves that Chinese investment can open new markets for European companies. The most luxurious XC90 model will be produced in Sweden, but other Volvo models have been put into production in China, and the company is considering exporting some Chinese models to the United States

there are also tensions in China EU trade relations. European investors complain that they are facing far more restrictions when investing in China than when investing in Europe, and that they are at a disadvantage when competing with Chinese enterprises owned or subsidized by the government

European officials have accused China of imposing restrictions on the export of raw materials in violation of the provisions that WTO members need to comply with. They also accused China of dumping solar panels, which caused serious trouble for German solar equipment manufacturers

when Li Keqiang visited Berlin on October 10, Hong Kong was holding Pro democracy protests. Merkel carefully mentioned that they also discussed human rights issues

Chinese officials have also criticized European enterprises. In September this year, the price regulator of Hubei Province fined Audi, a subsidiary of Volkswagen, US $40.5 million, saying that the auto manufacturer had reached a monopoly agreement with 10 dealers to maintain the high price of finished vehicles and spare parts

sometimes the negotiation between China and the European Union on a new comprehensive investment agreement has been progressing slowly. This Agreement may alleviate some friction, simplify the trading procedures and provide more protection for investors

in terms of the amount of funds, China's state-owned enterprises are the largest investor group in Europe, and even private enterprises such as Sany Heavy Industry have a close relationship with the government. This has raised a long-standing suspicion that Chinese investment is part of a hidden plan to exert influence on the European economy

but locally, the inaction strategy adopted by Chinese managers seems to alleviate such concerns

Professor Clegg of the University of Leeds said that the restraint shown by Chinese owners reflected that they were relatively unfamiliar with transnational business

this distinguishes them from American investors. U.S. investors may make acquisitions because they feel they can improve a company's management methods

"unlike the U.S. model, Chinese enterprises that come overseas have no management talents and decades of experience," Clegg said. "They are still saying that they have a lot to learn."

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