Xiang Wenbo: I look forward to the introduction of a duty-free policy for the import of major equipment

The heavy industry directly benefits from the national industrial revitalization plan

Financial website: I know that you are the president of Sany Heavy Industry, so what kind of proposal did you bring this time?

Xiang Wenbo: I mainly have some suggestions related to the development of our industry, mainly related to the tax reduction and exemption of some large equipment, such as some import restrictions, and I will also put forward a suggestion to the country to develop low-altitude issues.

Financial website: What is the current situation of the heavy industry industry?

Xiang Wenbo: Last year, despite the impact of the economic crisis, thanks to the country's economic stimulus plan, some export equipment has increased, and it should be said that the machinery where we are located has generally gained a development. The Group's size in 2009 increased by 50% compared to 2008 and achieved good results. When I met with the Prime Minister today, the Prime Minister also asked me if there were any difficulties in your company, and I said that there was no difficulty, and compared with last year, it increased by more than 50% over the same period last year.

Financial website: Has the country introduced some favorable measures in the heavy industry?

Xiang Wenbo: Because we are engaged in the construction machinery industry, we should directly benefit from the country's measures to stimulate economic growth. In addition, in the context of the major economic crisis, the country has issued a series of development plans to revitalize the industry, which has also prompted us, which is very good for us.

Financial Circles Website: Has there been any significant effect?

Xiang Wenbo: As I mentioned earlier, last year, we achieved enterprises, and in the context of the economic crisis, despite the obvious shrinkage of exports, they still maintained rapid growth, and this is the effect.

It is expected that the state will introduce a duty-free policy for importing major equipment

Finance.com: What specific support or policies do you hope to receive from some countries in the future?

Xiang Wenbo: I think in these aspects, *5656 is that the state should continue to increase the support for independent innovation of enterprises, which is a. Another is that the Chinese government and Chinese financial institutions will step up measures to encourage Chinese companies to go global. The other is the hope that further measures will be taken to restrict the import of some second-hand machinery and provide more market opportunities for the development of Chinese enterprises. In addition, some tax policies have been adjusted, such as the policy of tax exemption for some imported major equipment. Or give the same preferential policies to Chinese enterprises. I think these are some of the things I want the government to do.

Financial website: As a leading enterprise in the equipment manufacturing industry, what do you think will happen?

Xiang Wenbo: I am very optimistic that although people talk about this country, such as adjusting the scale of real estate, credit and so on, I think these tax cuts are to limit too fast growth, and too fast growth is not a good thing for the development of enterprises. For example, the economic growth of your country is a good opportunity for us, and too fast growth is actually not good for macroeconomic development and enterprise development.

In the next five years, we will vigorously expand internationalization

Financial website: Does Sany Heavy Industry have any big corporate strategies this year?

Xiang Wenbo: We put forward a strategy called three entrepreneurship, in the next five years Sany may have to put a lot of energy on the issue of internationalization, we regard internationalization as the third largest growth of Sany, you have seen this year's Spring Festival we went to Brazil, put forward an investment of 200 million US dollars in Brazil, which is a basic idea of Sany manufacturing. This is something we are thinking about in the coming years.

Financial website: You just talked about the construction of factories in Brazil, can you give us a detailed introduction to investors?

Xiang Wenbo: Brazil is a country in South America*5655, with a population of nearly 200 million and a land area of more than 8 million square kilometers. We want to use Brazil as a platform to reach the whole of South America. Therefore, we invested 200 million US dollars, mainly to establish our manufacturing industry and R&D base in South America, because we know that South America is far away from China, and it takes dozens of hours to fly by plane, and the logistics cost is very large. Because of this, Brazil is very protective of its own industry, and the tariffs on imported products are very high. So from the perspective of reducing costs, including providing customers with excellent services, we feel it is necessary to build a base in South America, South America has very good market prospects, as far as Brazil is concerned, we know that the 2016 Olympic Games, the World Cup will be held in Brazil, there will be a lot of projects to build, for us to engage in construction machinery, now the infrastructure is also very good, so South American countries are increasing investment in infrastructure, which requires construction machinery. We are very optimistic about the market prospects in South America, so this is also an important consideration for us to increase our investment in Brazil. Then in the future, we will have to produce a lot of products like excavators, concrete machinery,craneMachinery, are some of the products needed in the South American market. And these products should be said to be very competitive in South America, because we can do very well in terms of cost performance or service of our products. So South America is also particularly fond of products from China. That's why we are so determined to make such a big investment, and we hope that after the investment is launched, we can sell more than 500 million in South America within five years, and we hope to reach 2 billion US dollars in the next 10 years.

Finance.com: What about the process of building a factory in South America?

Xiang Wenbo: This is just the beginning, and I am mainly looking at the ground this time.

Financial website: When will the plant be completed and put into production?

Xiang Wenbo: That's next year.

Overseas M&A of Chinese Enterprises Transnational culture is a major challenge

Financial website: I heard you say before that the conditions for Chinese enterprises to acquire foreign enterprises are not mature, so can you explain to our netizens how you think about this issue?

Xiang Wenbo: In fact, the process of enterprise internationalization is a very complex process, which is not only an economic issue, but also a political issue, for example, when we operate in China, we will not take into account any product safety issues, will not take into account cultural conflicts, will not be subject to some, for example, Chinese companies in the United States will receive some protective measures, these will not be encountered. However, after enterprises go abroad, economic problems sometimes evolve into political issues, so the internationalization of enterprises is a very complex problem, so as a Chinese enterprise, whether it is the strength of Chinese enterprises themselves, or the ability of Chinese enterprises to operate, I think it is a great challenge to carry out transnational cultural management and transnational operation. There is also the question of China's national influence and strength. As I said just now, I have said on many occasions that the internationalization of enterprises is actually the extension of the national will, and the driving force behind it is actually the influence of the state. In a sense, he is also conveying national influence. Therefore, I think that Chinese companies want to merge and acquire foreign companies, and from these aspects, the conditions are not very mature, so you also see that there are not many successful cases of Chinese companies in overseas mergers and acquisitions. Of course, the situation can also undergo some changes, I believe that with the further improvement of China's national strength, with the further maturity of Chinese enterprises, so the operating strength of Chinese enterprises is so large, I believe that in the future, the internationalization of Chinese enterprises will be more mergers and acquisitions or restructuring.

Finance.com: What experience do you have from the 2009 financial crisis?

Xiang Wenbo: Actually, because we have benefited from a series of national policies, we have not felt that this economic crisis has had much impact on us, except for a certain contraction in exports, we have not seen much impact. The proportion of exports in sales is not too large, which is the case for many Chinese companies. So for us, we didn't feel much of a shock, but felt more of an opportunity, because we have directly benefited from further increasing domestic investment in infrastructure construction and a series of measures to stimulate economic growth, and we feel that it is still an opportunity. I also believe that the economic crisis will pass soon, and I think that the world economy will recover quickly in a year or two, and this crisis is not necessarily a bad thing for us, because we are really not very well prepared for internationalization, in fact, we can do a lot of work in the middle of the process. For example, we are now going to Brazil to inspect and invest in the construction of factories, this investment and construction is a matter of one or two years, in fact, we are not well prepared, so if we talk about another crisis, we do this more fully, I believe that we will have a good grasp of the next round of economic growth opportunities.

Financial website: *I would like to ask Mr. Xiang, do you have any experience as a leading businessman? Share it with netizens.

Xiang Wenbo: This topic is very big, and I am also learning, and I hope to have the opportunity to communicate with more entrepreneurs and more netizens in the future.