On August 5^th, Center for Multinational Company Studies, China Research Center for FDI, Center for International Business Ethics and University of International Business & Economics (UIBE) held together the Workshop on theory and practice of trade/processing enterprise transformation and CSR performance of Chinese overseas investment. The participants in the workshop were Prof.Dr. Oded Shenkar from Max M. Fisher College of Business, Ohio State University, Dr. Maria Méndez, from Institute of International Relations (IDEI), Catholic University of Peru, Wall street financial expert Thomas A. Myers, officials from the national development and reform commission, the ministry, the ministry of commerce, general administration of customs, experts from Chinese Academy of Social Sciences, Tsinghua University, Central University of Finance and Economics, China International Trust & Investment Corporation Group, School of International Trade and Economics, School of WTO, School of Foreign Studies, School of International Studies and School of Public Administration of UIBE.

 

Vice president Lin Guijun of UIBE attended this workshop, discussed questions on TPP, new open economics with other participating experts and scholars. The workshop contains two themes “Theory and Practice of Trade/Processing Enterprise Transformation and CSR Performance of Chinese Overseas Investment”, which were respectively hosted by Prof. Dr. Fan Libo (Director of the Research Centre for the Internationalization of Chinese Enterprises at the Business School, UIBE) and Prof. Dr. Lu Jinyong (Director of the China Research Center for FDI, UIBE)

 

Symposium scene

In discussion on “Theory and Practice of Trade/Processing Enterprise Transformation”, Prof. Fan Libo and Shenkar gave keynotes. The theme of Fan Libo’s speech was “establishing new logic of China OEM production development ——inspiration from Hidden Champion in German”. He pointed out three transition traps China OEM enterprises were facing: lack of impetus, lack of support and limited sales, pursuit of vested interests, combining with investigation results from Nestle(China),Japan NSK(China), Giant (KunShan), GoodBaby group and other famous domestic and foreign enterprises. In new international industrial division system, how did Chinese OEM manufacturing enterprises break out of encirclement? Fan Libo thought, medium-sized and small enterprises in Germany that was Hidden Champion, called by Hermann Simon was learning examples of Chinese OEM enterprises.

 

Prof. Shenkar gave keynote” Challenges in Transforming and Upgrading Chinese Enterprises”. He summarized typical characteristics of Chinese OEM enterprises: operating only in growing market; being prepared for going into profitable industry and department at any time; strengthening the construction of enterprise competence under a too perfect assumption; often behaving and talking vaguely, calling that “China characteristic “;seldom considering about exit mechanism. On this base, Shenkar made a conclusion of ten suggestions for Chinese OEM manufacturing enterprises transformation, including the essence of enterprise strategy was to ensure what cannot be done, not what can be done; Enterprises must understand that low cost advantage can never support the sustain development of enterprise.

 

In the subsequent free talk, Wang Xiaohong ,macroeconomic research institute researcher, from the national development and reform commission thinks, from a historical perspective, the processing trade have played an important role on transfer employment of China's rural surplus labor, promotion of the integration of urban and rural development, the training of industrial workers. Zhou Weiying, deputy director of research center of the general administration of customs said, transformation and upgrading of processing trade enterprises is a systematic project; in the context of the problem itself, it is a need to think about the problem of enterprise itself. Li Donghong, professor of Tsinghai university economic management academy also showed his attitude toward Chinese OEM business transformation and upgrading, thinking that this pill over effect of OEM enterprises was notable. Professor Sun Guohui ,from business school of the Central University of Finance and Economics said in a statement, transformation and upgrading of processing trade enterprises, was also Chinese economic transformation and upgrading, not just involving the small and medium-sized enterprises, but also large state-owned enterprise.

 

In discussion on how Chinese enterprises undertake CSR in the process of integration into global economy. Liu Baocheng, associate professor, director of Center for International Business Ethics, Prof. Shenkar respectively gave speech on “Responsible Investment Overseas” and “Corporation Social Responsibility of Going Out Chinese Enterprises”

 

In free discussions, a few experts and scholars made impressive speeches. Prof. Maria Mendez, said with the growth of China's foreign investment, Chinese enterprises fulfilling social responsibility was very important. Chinese effort to strengthen cooperation between the government shad made significant achievements. Financial experts Tomas A. Myers believed that Chinese enterprises should strengthen the performance of social responsibilities, formulating corresponding rules or laws for business, which was helpful for the change of China's international image. Madam JiHong, from China CITIC Press, said in the performance of corporate social responsibility, people should pay attention to the combination of economic interests and political demands. Pei Changhong, director of the institute of economics, Chinese academy of social sciences, thought, in theory, analysis of corporate social responsibility was originated from enterprise cost externalizing problems; namely the enterprise activity produced social costs, requiring governance. Jiang Heng, associate professor ,from the ministry of commerce research institute, combining research experience in Asia, Africa and Latin America and other regions where China's foreign investment were, thought the enterprise must pay attention to fulfill social responsibility. Feng Jieyun an associate professor from School of International Studies of UIBE, emphasized, in the era of new media, new media such as weibo made an effect on how multinational corporations fulfill social responsibility. Guo Xiaoling, an associate professor, discussed relationship between luxury goods and corporate social responsibility in terms of the logic and market.

 

Group photo of Participating Guests (Part)

 

Attendees of this workshop communicated and discussed actively and deeply. They fully demonstrated the importance of the Combination of Industry, Official and University, interdisciplinary communication, freedom to research team construction in scientific research. This workshop has achieved a great success.