China's industrial safety report announced the intention of foreign mergers and acquisitions

In July 23rd, the Ministry of Commerce announced the "annual security situation China industry 2008 assessment report", report from the industrial control, industrial competitiveness, industrial growth, industrial development environment, key industries, security and other aspects, the study on the assessment of the security situation in Chinese industry since 2007, the iron and steel petrochemical, light industry and textile, machinery, ships, automobiles, electronics, building materials, nonferrous metals and other 10 key industries.

Foreign mergers and acquisitions intention to enhance

The report pointed out that foreign mergers and acquisitions continue to broaden the field, are from the general consumer goods industry to the equipment manufacturing industry, raw materials and other basic industries to expand; the individual tendency is obvious, from 1984 to 2007, foreign investment in wholly foreign-owned enterprises the proportion increased from 3.8% to 78%; and the purchase of foreign strategic intent enhancement, foreign mergers and acquisitions in recent years the domestic well-known enterprises and even increase and scale of leading enterprises. In terms of industrial safety in key industries, the automotive, electronic industry control is weak, automotive, petrochemical, non-ferrous competitiveness is weak, petrochemical, electronics, nonferrous metals and other industries.

Industrial security is facing greater uncertainty

Development environment, industrial safety is facing greater uncertainty, mainly reflected in six aspects: is the international financial crisis has increased the risk China industrial development, trade friction caused by trade protectionism intensified, the use of trade remedy measures to protect the industry security situation is becoming increasingly grim, the advantage of low cost of labor, land and other factors increasingly weakened the role of energy resources and environmental constraints, continue to appear, the appreciation of the renminbi weakened domestic industry competitive advantage.

Industrial security risks increased

The report notes that the impact of the international financial crisis continues to deepen, the global economic growth is slowing down in the context of China's industrial sector increased security risks. Which is the key to international market demand, declining support capability of energy and resources; weak capacity of independent innovation, key areas, key technology of heteronomy; not only to continue to expand the opening, but also to prevent the emergence of technology monopoly and market monopoly. In the short term, there will be a negative impact on industrial security from industrial performance and growth.

Report that the trade barriers form diversification, export enterprises more difficult, the rising cost pressures still exist, the product price promotion space is limited, the enterprise profit ability and other aspects will affect the future of industrial safety China.

Ten recommendations to maintain industrial security

This report presents ten recommendations to maintain industrial security. The main way is to strengthen the key support, improve the industrial development of the control technology and brand control; accelerate the enterprise mergers and acquisitions; actively support and encourage enterprises to "go out", to establish their global production system; to further improve the industrial chain, the development of industrial clusters, improve the industry faced a crisis relief to improve the bearing capacity; system and mechanism of industrial safety related laws and regulations and trade, properly handle trade friction.

The following is the full report:

Since 2008, the international financial crisis continues to spread, so that the domestic industrial development and security are facing greater pressure. Faced with new challenges, the CPC Central Committee and the State Council, the situation, the timely introduction of a series of effective macroeconomic policies, efforts to minimize the negative impact of the financial crisis. To accurately grasp the new features and new trend of China industrial security situation and change, the Ministry of Commerce Bureau of industry injury investigation organization and relevant research institutions, from several industrial control, industrial competitiveness, industrial growth and industrial development environment, the iron and steel, petrochemical, light industry, textile, machinery, shipbuilding, automobile, electronics, building materials 10, nonferrous metals and other key industries (2007 of the 10 industry accounted for all the industrial enterprises above the scale of export delivery value, total output and total profit 94%, 85% industrial and 76%), were evaluated on China industrial security situation since 2007.

Research shows that since 2007, China's industrial development and industrial security situation has shown rapid changes in the characteristics of. From 2007 to the first half of 2008, Chinese industry on the whole industry safety situation is relatively good, but by the impact of international financial crisis and the adjustment of intertwined superposition, especially in the second half of 2008 since the third quarter of the industry security situation is increasingly grim, industrial security threats mainly come from the financial crisis.

From the point of view of industrial control power, industrial enterprises to strengthen the control of the industry, but the new characteristics of foreign investment into the new. First of all, domestic enterprises market control has increased. 2006 to 1-11 in 2008, the scale of industrial enterprises in the domestic market share increased from 68.39% to 70.27%, the degree of dependence on imports and exports were reduced from 20.39% and 19.48% to 16.90% and 16.86%. Secondly, foreign direct investment shows signs of slowing down. Since 2007, foreign direct investment has shown a decline in the number of newly established enterprises. From the beginning of the 4 quarter of 2008, the amount of foreign investment showed a rapid decline trend. 2008 the number of newly approved foreign-invested enterprises fell by 27.35%. Third, foreign investment into the new features. Foreign mergers and acquisitions continue to broaden the field, are from the general consumer goods industry to the equipment manufacturing industry, raw materials and other basic industries to expand; the individual tendency is obvious, from 1984 to 2007, foreign investment in wholly foreign-owned enterprises the proportion increased from 3.8% to 78%; foreign mergers and acquisitions strategic intent is enhanced in recent years, domestic foreign mergers and acquisitions