The strategy of “going out” is also known as China’s modern rejuvenation strategy and an international business strategy adopted by Chinese enterprises who make full use of the “two markets and resources”--- the domestic and foreign ones in the form of direct investment, foreign project contracting, foreign labor cooperation etc to participate in international competition and cooperation so as to realize the sustainable development of China’s economy.

　　What is the current situation of Yichang enterprises’  “going out” in domestic and international economic environment at present? Where have they been to? What kinds of formidable obstacles have they met in the process of “going out”? What kinds of support have the government and related departments given to them? Recently, the reporters have visited the related departments and get the answer.

　　Steady “going out” facilitated the growth of exports.

　　"Sino-Nepalese cooperation & win-win development-Focus on Yichang Promotion Conference of Nigeria Lekki Free Trade Zone" was held on April 24th. The progressive mode of "promotion - exhibition - investment cooperation" sparked the enthusiasm of Yichang Enterprises. Then the Lekki Free Trade Zone Development Company signed a memorandum of cooperation with the representatives of Yichang Municipal Council for Promotion of International Trade...

　　This scene is only a tip of the iceberg in the projects of Yichang foreign economic cooperation and of Yichang enterprises stepping into the international arena.

　　The following figures gained from the Municipal Bureau of Commerce may show the general situation of Yichang foreign economic development in recent years. From Jan. to Dec. of 2013, the accomplished turnover of city\'s foreign economic cooperation business reached $ 2,559,804,400, up 17.89% year on year. And the city\'s contracted projects drove the equipment exports value to $ 126,426,100. The foreign investment drove the equipment exports was that the Angel Yeast Co., Ltd.’ s investment in Egypt drove the equipment exports value to $ 27,800. From Jan. to Mar. of 2014, the accomplished turnover of city\'s foreign economic cooperation business reached $ 587,480,200, up 9.68% year on year. In addition, the investment in Myanmar by China Nuclear Industry 22nd Construction Co., Ltd drove the equipment exports value to $ 75,700.

　　"It is great of the overall development. So far 30 Yichang enterprises have invested and set up factories abroad, which involving many aspects of resource development, mechanical processing, chemicals, musical instruments, photovoltaic & new energy, of agricultural processing, of pharmaceutical industry, real estate and etc. "said Wu Shengjin, the chief of foreign economic office of Municipal Bureau of Commerce.

　　Only by implementing the “brand strategy” and popularizing “made in China” can enterprises have the confidence for overseas expansion.

　　For those enterprises in Yichang who have succeeded in "going out", they shared one feature in common, that is, implementing the “brand strategy” and popularizing "Made in China".

　　In the past decade, the average annual export growth of Angel Company is more than 30%. Now, 40% products of Angel are exported to more than 140 countries and regions which include Europe, America, Japan, Korea and etc. Even the global financial crisis has failed to shake the export growth of China\'s Angel Company. In the course of participating in international competition, Angel Yeast has always put the brand strategy in the most important position. Yu Xuefeng, the chairman of Angel Company, told the reporter that 95% of export products from Angel are its own brands.

　　In 2013, the first overseas Yeast Factory in Egypt established by China went into operation. Because of inter-regional trade agreements, the neighboring importing countries or regions would give Egypt a zero-tariff or low tariff treatments, which were lower than directly exporting Chinese products. It would take only an average of 7 days to supply products directly from Egypt to customers, but the same situation would take about 40 days from China. Yu Xuefeng said that this new factory not only accelerating the speed of response for the customers, but also reducing transportation costs and the inventory carrying costs for the company.

　　Similarly, HXF Saw Co., Ltd, a state-owned enterprise in Yichang, also put the "going out" as the basic strategy and shared the "cake" of overseas markets with the expansion of the scale and growth of the strength.

　　Zou Changjun, Deputy General Manager of HXF Saw Co., Ltd., said," We communicate with the world-renowned clients and promote our brands by the strategy of "Coming in" and "Going out". With steady growth of business, our projects have been sold in more than 40 countries and regions of the world. It is generally known that the wider products are distributed, the lower risk of operation we will hold. As we follow the transference of chain industry movement, we can produce and sell product by Thai companies. This can not only avoid the anti-dumping measures of the United States, but also increase the quantity of directly exported products (such as saw blade matrix) to the U.S. market, thus bringing in increments of about 30 million yuan annually. "

　　How many "formidable obstacles” are there on the way of “going out”?

　　"The core problem" is the talent and capital.

　　Since some enterprises have been redundant in the local market, why can they not move a step to "going out"? According to the interviews, there are various reasons.

　　First of all, some of the enterprises ideologically lack of the confidence of “going out”.  “Since we are not a big enterprise, throwing so large amount of capital into foreign countries that far will make us uneasy” said one enterprise owner.

　　It may have reflected many entrepreneurs’ concerns. After all, when an enterprise decides to invest abroad, it will face new environments, new languages, different habits and customs, difficulties caused by limited acknowledge of the market, all of which will double the risk of the management and decrease the entrepreneurs’ sense of security mentally and physically, hence stop the action of “going out”.

　　Meanwhile, some of the enterprises don’t have a proper plan for their future development. For instance, some of the enterprises with excessive production capacity don’t have the courage to invest abroad because they are totally content with the existing conditions and enjoy what they have earned. “Their local products which are basically exported actually have no price or tax advantages at international market. But if they can invest abroad, they will earn a brighter future. While the truth is that they either don’t have the proper plan or the courage and passion to go global” said Wu Shengjin, the chief of the foreign business and economy section of the Municipal Bureau of Commerce.

　　And for many enterprises, the core issues that have hindered them to go global are the capital and talents. If enterprises want to “go out”, the demands upon personnel are much higher, because they must make a correct judgment of the unpredictable economical situation and market quotation, they must know as soon as possible the economy and culture of the places where they will invest, and accurately understand the relevant policies .”said Zou Changjun.

　　Wu Shengjin introduced that for many productive enterprises, it is normal to invest 5-10 million RMB because of the higher labor cost and policy cost, which makes financing a practical and important issue.

　　Besides, the international situations are changeable. Those enterprises going out usually invested in the developing countries where security and investment environment are uncontrollable. This has greatly influenced their determination to “going out” to some extent.

　　Financial support helps to build the platform and assist the enterprises  “going out”

　　How to assist these enterprises in “going out”? The chief from the Municipal Bureau of Commerce introduced that they would build the platform by making use of policies, and preliminarily help the enterprises to recommend their projects and train their staffs.

　　At the same time, the Department of Commerce of Hubei Province has handed out the Notice of Implementing Double Projects to Promote the Development of Investing Abroad. The Department of Commerce of Hubei Province will make full use of the markets and resources domestic and external to improve the international management level of the preeminent enterprises in Hubei Province, and primarily cultivate and support those major enterprises investing abroad and major abroad projects. It’s reported that the “ project to support major enterprises and programs” is a systemic project, the aims of which will be to cultivate and support those major enterprises investing abroad and major abroad projects; to improve the quality and scale of “ project to support major enterprises and programs; to help the manufacturing enterprises with comparative advantages build production base abroad; to contribute to transforming the overcapacity of cement, steel, vessels and so on and promoting the agriculture development and agricultural products processing ; to support the competent enterprises to exploit the miner resources cooperatively abroad; to encourage and lead the preeminent enterprises to build trade and economic cooperation zones abroad; to build the development platform of abroad industry and industry chain. The department will dedicate to the building of a diversified and stable international research center, the system of resource exploiting abroad and the global marketing network.