Zhejiang Model of Overseas Acquisitions



Zhejiang Model of Overseas Acquisitions

China Newsweek August 1

East China’s Zhejiang Province currently hosts 308 listed companies, making it second in this regard only to Guangdong Province. However, over-reliance on low-end manufacturing industries, lowcost labor and resources, and traditional business models has hindered the development of the local economy.

Overseas acquisitions represent a viable way to bring about industrial transformation in Zhejiang. From 2010 to 2015, the number of overseas acquisitions every year increased from seven to 18, and the value of the acquisitions increased from 237 million yuan ($35.7 million) to 3.24 billion yuan ($488.7 million).

European companies are favorable choices for enterprises in Zhejiang when it comes to overseas acquisitions. On the one hand, European countries have been seeking new economic drivers since the European debt crisis, and their companies are valued at relatively low levels. On the other hand, most European companies possess advanced technologies and management methods, which complement their Chinese counterparts.

However, overseas acquisition activity by Zhejiang businesses remains at a preliminary The death of Zhang Chao, a lieutenant commander and aircraft carrier pilot candidate from the People’s Liberation Army (PLA) Navy, was publicly announced just ahead of the 89th anniversary of the founding of the PLA on August 1.

Zhang belonged to China’s first carrier-borne aircraft unit, which was established in May 2013. He lost his life on April 27 in an accident caused by mechanical malfunction during a routine training exercise.

Zhang focused on trying to save his aircraft, only ejecting at the last moment. However, as the plane was not far above the ground at the time, his parachute couldn’t fully open in time.

Zhang, who was 29, hailed from Yueyang City in south China’s Hunan Province. Having enrolled in the PLA Air Force Aviation University in 2004, he qualified as a PLA Air Force and Navy pilot before being selected as an aircraft carrier pilot candidate.stage. Many local companies who would like to take this path lack clear, long-term plans and have insufficient understanding of the rules governing overseas acquisitions.

The government should provide proper guidance as well as incentive policies to assist and encourage local companies in the process. Through overseas acquisitions, Zhejiang expects to form an industrial structure characterized by high-end manufacturing and modern services.