A long way off for the globalization of Chinese enterprises

Date:03-14-2013

Recently Agropages’ Chinese site, which is the most read site for the Chinese agchem industry people, conducted a questionnaire survey among its Chinese readers with respect to the globalization potential of Chinese agchem enterprise, aiming to find out which Chinese enterprises have got globalization potential in the industry and when Chinese enterprises that are globalized in the real sense will emerge.

What is regarded as globalization potential?

Taking an example of global top 20 agchem enterprises and giving an analysis of their operations, some of the features of globalization that are inherent in a global enterprise are indicated as the following:

Global Top 20 Agchem Enterprises &Globalization Features of 2011
Top 6 : Syngenta, Bayer, BASF, Dow, Monsanto, Dupont	Top Generics： Makhteshim Agan, Nufarm, Sumitomo, UPL, FMC, Arysta, Cheminva, Kumiai, ISK, Mitsui, Nippon Soda, Sipcam-Oxon, Nihon Nohyaku.
Features of Globalization: 1. Global presence, selective market, different sector and location, targeted strategy. 2. Technology-driven business operation, supported by R & D advantages. 3. Long product chain, broad product line, biological technology overage, diversified operation. 4. Positive locational extension, merge & acquisition activity enable fast entry to new market and new sector. 5. Resources sharing, active licensing production & marketing build up alliances on a win-win basis. 6. Localized operation, terminal market registration and marketing channel establishment provide farm growers with complete crop production solutions. 7. Financial strength, rich human resource reserves, high-efficient operation, strict supply chain.

Results of survey

Q：Which are the Chinese enterprises that have got globalization potential?
Less than 20% readers answered “No” or “Not a single one yet”, saying that none of the present Chinese agrochemical enterprise has got the real globalization potential, on the other side, over 80% readers believe that some Chinese enterprises have got globalization potential.

Total 19 enterprises were voted to have got globalization potential. Sinochem received the votes of 18%, ranking the first group, followed by Wynca, Rainbow, and Nutrichem, ranking the second group, with an average votes between 8-10%. 8 enterprises received votes between 3-5%, 7 between 1-2%.

Globalization Potential
Group	Percentage of votes	Company Name	Reason
1	>15%	Sinochem Agrochem	Global view, product competition, independent research capacity,overseas footprint and registration, participation in international standard formulation, financial strength, well-maintained human resource, etc.
2	8-10%	Wynca
		Rainbow
		Nutrichem
3	3-5%	Noposion
		Tide Group
		Jiangyin Suli Chem.
		Redsun Group
		Lier Chemical
		Rotam
		Yangnong
		Sinochem Ningbo
4	1-2%	Lanfeng Biochemical
		Changqing Agrochem
		Sino-Agri United
		Huifeng Agrochem
		Jiangsu Tianrong
		Jiangsu Flag
		Unisplendour Chemical

Q：When a Chinese enterprise that is globalized in a real sense will emerge?
51.5% readers think that it will take 6-10 years; 23.5% readers believe it will take 4-5 years; 16.2% deems that it will take more than 10 years and 8.8% says it will take 1-3 years.

The comparison of the globalization features between international enterprises and Chinese enterprises suggests that it is indeed still a long way to go for Chinese enterprises to grow up into international enterprises in the real sense.

We also invite you to join the following survy to share your experience to cooperate with Chinese companies.