At the Third Plenary Session of the 18th CPC Central Committee, the "Decision of the Central Committee of the CPC on Several Major Issues Concerning Comprehensively Deepening Reforms" pointed out that "according to the new situation of economic globalization, we must promote internal and external mutual promotion, better integration of imports and exports, and promote international and domestic cooperation. The free flow of elements in an orderly manner, the efficient allocation of resources, the depth of market integration, and accelerating the cultivation of new advantages in participating in and leading international economic cooperation, and promoting reform through openness." In the context of full market competition, how should companies participate in international competition? After years of external cooperation, Guangxi Yuchai Machinery Group has provided a new sample for companies to carry out foreign cooperation. On November 12, 2013, the world-famous financial center - the beautiful Hong Kong Victoria Bay was calm. On this day, Yuchai Group, China’s largest internal-combustion engine manufacturer, entered into a joint venture agreement with the company in Hong Kong. The signing ceremony was very simple and the chairman of Yuchai Group’s board of directors Junping spoke softly with the partners. In the whisper of the rustling, the two parties reached a cooperation for the future. This cooperation appears to be relatively low-key under the background of a number of domestic large-scale enterprises undertaking overseas bargain-hunting and other bold overseas development models. Before this, Yuchai Group also cooperated with Caterpillar, Wärtsilä, and Malaysian oil companies and other large multinational companies. The cooperation direction is aimed at the domestic market as well as the international market, including product manufacturing and investment and trade. Yuchai promoted its own construction through different methods of investing in the bargain-hunting overseas, read the overseas business game rules, and established a management foundation and a network foundation for overseas expansion. "Western Learning" is coming to the east On November 18, 2013, Yuchai carried out a unique training--Overseas anti-corruption training, Deputy General Manager of Yuchai's Overseas Business Department, Liang Bing, Director of Yuchai's Office in India, and related management of units of Yuchai. Cadres participated in this training. In Yuchai, the anti-corruption requirements not only come from China, they must also carefully deal with strict restrictions from foreign laws. The origin behind this has to be discussed from 20 years ago. Twenty years ago, when many state-owned enterprises were still developing slowly along the old roads, Yuchai made a far-reaching decision after completing the joint-stock reform. On May 24, 1993, Yuchai’s approval of the State Foreign Economic and Trade Commission and the introduction of foreign investment officially received the business license of the “Chinese-foreign joint venture Yuchai Machinery Co., Ltd.â€. This is Yuchai’s second major after the joint-stock system reform in 1992. change. From 1992 to 1994, Yuchai seized the opportunity of a new round of system reform. Through independent research and development of medium-sized diesel engines, Yuchai's products with diesel engines as its core rapidly covered half of the domestic market, with annual sales income, profits and taxes. The growth was as high as 112% and 180% respectively, breaking the monopoly market of foreign diesel engines, becoming the world's second-largest production scale and China's largest internal combustion engine production base, and writing a glorious history in Yuchai. Most of the older generation of Yuchai people still remember the tidal history. In September 1993, Yuchai, which received ample funding for technological transformation, bought back an imported production line from Brazil. At that time, Yuchai was making loud noises and colorful flags fluttering. With a vehicle loaded with modern production equipment slowly entering the door of Yuchai, the flight of Yuchai to the world's leading enterprises began. In 1994, Yuchai International was listed on the New York Stock Exchange of the United States and became China's first Sino-foreign equity joint-stock joint-stock company to be listed overseas. It created a successful precedent for Chinese joint-stock companies to use private equity to issue foreign-invested shares, and successfully opened a direct international connection. The road to financial markets. On the road to corporate reform, Yuchai has been galloping all the way, from the joint-stock reforms in 1992 to the Sino-foreign equity joint-stock reforms in 1993 and to the United States in 1994. Yuchai eventually opened the door to modern industry through a series of external cooperation. According to Yuchai managers today, the most important significance of entering the capital market was not only the acquisition of capital, but also the international operation and management system brought by the capital market. This excellent institutional foundation brought Yuchai shares. Longer-term advantage. When some state-owned enterprises are still subject to relevant regulations and cannot exercise restraint in terms of talent introduction and compensation incentives, Yuchai has already transformed this institutional advantage of “government-enterprise separation†into talent advantages and technological advantages of the entire group. Product service advantages. At the same time, foreign advanced management models have also been able to take root here, similar to overseas anti-corruption laws and other concepts and knowledge, integrated into the daily management of Yuchai, making the business activities relatively free and in line with the norms, but also to make the company grow For the industry leader. This is the first time that Yuchai has introduced foreign joint ventures and joint ventures to make bold changes in its own efforts. East Learning Since then, Yuchai has repeatedly introduced foreign management experience. In this process, confident Yuchai continues to expand the way of innovative international cooperation. Li Ke is the president of Yuchai Logistics Corporation. A few months ago, he was the deputy general manager of Yuchai Remanufacturing Co., a joint venture between Yuchai and Caterpillar. The young chief executive spoke of his work experience at Yuchai Remanufacturing Company and he had a lot of emotion. This joint venture with Caterpillar has completely shaken off the operations of domestic companies and almost completely replicated Caterpillar's management experience. This is a difficult choice for Yuchai, a company with more than 60 years of history. “We Yuchai has a rich management foundation and experience, and our management model is also successful in China. Why is Caterpillar's operating model adopted?†said Li Ke. At the beginning of Yuchai Caterpillar remanufacturing company, many management officials from Yuchai often had such doubts. This confusion and misunderstanding have even led to unavoidable friction. At a management cadre meeting, Yuchai Fang and Caterpillar’s ​​management cadres disagreed on the question of whether or not it should openly criticize an employee. Li Ke said: "We have always liked to put the issue on the table and talk about the wrong person. This can solve the problem." However, Caterpillar's colleagues did not agree that the two sides could not argue. Later, it was decided to vote to decide whether the "public criticism should be criticized privately." This friction actually exists in most of the domestic joint ventures. Because of the different management culture, both parties will inevitably have disputes over specific issues and how to deal with them. This is a problem that all enterprise managers must face when they expand and cooperate with the outside world. Yuchai has taken a different approach than direct confrontation. Li Ke said: "Although we have a lot of conflicts, we have to choose dialogues. The key to the so-called dialogue is that I think the key is to talk about the matter. I will give you an example. We will place two chairs opposite each office desk. If the supervisor and When subordinates talk, they will not sit at different tables, but they will sit together and talk about each other's heart in a way that is such a way. Such a dialogue will certainly not be a kind of confrontational dialogue. This is understood and accepted by both parties. Very helpful." Everyone sat down and talked about, to straighten out the issue, and cooperation would be smoother. The cooperation between Yuchai and Caterpillar is based on this atmosphere and understanding. After the introduction of Caterpillar's full set of management models, Yuchai people are not completely accepted or directly confronted. They adopted a unique approach to oriental culture. For example, some foreign companies are weak in execution and performance management due to their relaxed and free culture. However, Yuchai people have never given up their demands on execution and performance. However, how do they communicate with foreigners? Li Ke said: "The approach we take is gentle, patient, and don't give up." Gradually, their cooperation has formed a new model. This combination of Chinese and Western management began to promote the company on the right track. Yuchai people also figured out the rules of the game for international competition and cooperation. Core Competence Guarantees "Drought and Flooded" The company's core competitiveness is the issue that Chang Ping usually talks about. He said that the key to doing business is to do a good job of internal training, and only by having a strong competitive edge can we achieve "drought and flood protection." How to improve core competitiveness, different companies have different tricks. Yuchai selected foreign cooperation to introduce advanced technology and upgrade its own level. In the eyes of people in the industry, this is more secure than many companies overseas bargain-hunting and “buying renminbiâ€. In addition to the introduction of Caterpillar remanufacturing technology, Yuchai also cooperated with Malaysian Petroleum Corporation. Malaysian oil companies have many years of history in the manufacture of lubricants. This cooperation laid the foundation for Yuchai to upgrade its lubricant manufacturing technology. In June 2013, Yuchai Petroleum Lubricant Company was listed. Italian and Lubricant technical expert Andrea Dolfi has served as the company's deputy general manager of technology. The top priority for him and his colleagues is how to improve the quality of Yuchai Lubricants to the world-class level. Product quality has improved. How to sell overseas is another issue they face. Yuchai’s other subsidiaries also need to increase their efforts in overseas market development. For example, Yuchai's core product engine, domestic engine production capacity has been a serious surplus, Yuchai must strongly promote the construction of overseas networks. Although Yuchai currently holds the largest number of domestic industries in the Southeast Asian market, the development speed still cannot meet Yuchai's own development needs. In addition, Yuchai’s need for sales of construction machinery products and other products, and the rapid development of overseas markets has become a pressing task for Yuchai. "If our overseas market network is not built, internationalization is empty talk," Muping said. After Hong Kong “came in†with Kai Energy, Yuchai caught the opportunity. In November 2013, the Yuchai office was officially established in East Africa. Yuchai began to expand from North Africa to Central Africa and South Africa in the "traditional base area." What lay before Yuchai was the vast African market. At this point, after years of operation, Yuchai has established 46 offices at home and abroad, more than 3,000 service stations, and 95 overseas service agents. Solve overseas competitiveness of their products, overseas sales channels to solve their own problems, to find the rules of the game in international competition, Yuchai in order to smooth participate in international competition. In the background and constantly open up the international network, the first half of 2013, Yuchai engine to enter overseas than last year grew 40%. Has experienced 60 years of trials, the firm continues to expand its international route.
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