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Defuse steel overcapacity China CCPIT help "two excellent" sea

Source: China United Steel Net

Under the weight of excess domestic production capacity this year, China will accelerate the promotion of international co-production and equipment manufacturing.

February 23, at the first press conference, the Minister of Trade and Investment Promotion Department, CCPIT China Lin Shunjie said that to promote the advantages of our production capacity and advantages of equipment ( "two excellent") out to sea, CCPIT this year will select a number of basic conditions for cooperation and good developing countries as a key market, to achieve industrial output lifted from the product output.

2015 was the first year of international production cooperation. Summed up last year's work, the National Development and Reform Commission, said China's railway to go out to achieve major breakthroughs, nuclear power go take solid steps, iron and steel, nonferrous metals, building materials and other high-quality production began large-scale outward transfer, overseas investment, project contracting and equipment driven by rapid export growth . In addition, in order to focus on neighboring countries "Spindle" in Africa, the Middle East and Central and Eastern European countries to focus on "West Wing", to focus on Latin American countries to "East Wing", China's "one axis wings" Cooperation accelerate the formation of the layout.

As foreign trade and investment promotion agency, CCPIT will focus on "two excellent" sea continue to force this year, focusing on creating projects include: four African countries Investment Conference, China International Equipment Manufacturing Exposition, Brno International Machinery Expo China Pavilion exhibition . In addition, CCPIT will organize enterprises to participate in trade and investment promotion missions, each visit to Malaysia, Thailand and Cambodia, Kazakhstan, Uzbekistan and Russia, the United Arab Emirates, Iran and Egypt, Ecuador, Colombia and Costa Rica, and strengthen "along the way" along the country Latin American countries and industrial docking.

Last year, the EU and around China and France, Britain and other developed countries proposed third-party market cooperation, focusing on Africa and Latin America markets. Lin Shunjie to the 21st Century Business Herald reporter said that in place later this year, China-EU Business Summit, CCPIT will continue to promote China-EU business cooperation in third markets.

"Indeed, in Latin America and Africa, many countries in the EU have the advantages of traditional business, but Chinese enterprises have irreplaceable advantages, such as production costs and certain technical aspects are unique, particularly in integrated projects of integration such cooperation can avoid European enterprises vicious competition in emerging markets. "

In addition, Lin Shunjie stressed that European enterprises in overseas markets also choose different: Chinese companies tend to bear the risk of higher capacity, a generous heart stronger. "In high-risk areas, joined the Chinese enterprises to enter the EU and business capital and technology is a good combination pattern."

Power Africa, Latin America Industrialization

According to reports, the CCPIT and UNIDO (UNIDO), the International Trade Centre (ITC) cooperation for agriculture and manufacturing projects in Ethiopia, Kenya, Zambia, Tanzania and other African countries yet to be developed, and in February, May, July and November in the country hold four seminars and two investment Trade and investment Forum, focused on helping Hebei, Shanxi, Jiangsu, Shandong, Liaoning and other provinces have co-production needs of enterprises docking project.

"This event is not a simple meeting," Lin Shunjie said, "is the cause of President Xi Jinping and Prime Minister David Cameron witnessed a cooperation agreement to help African countries to achieve industrialization." October 2015, Xi Jinping during a state visit to Britain, Africa development Fund Co., Ltd. and the British Department for international development signed a "memorandum of cooperation on export promotion and investment in Africa."

As the first launch of the reasons the four countries, Lin Shunjie explained, these countries have more market prospects, and the advantages of Chinese production company match is relatively high, China-UK cooperation will focus on agro-processing, manufacturing two areas. At the seminar in February, is expected to have more than 60 companies from Hebei, Shanxi, Jiangsu, Shandong, Liaoning and other provinces to participate, the project is expected to dock.

"The United Nations International Trade Center will develop a preliminary project docking technical support and development investment program, the priority of China-Africa Development Fund to provide financial support to the project I would recommend, I will also provide advisory services and feasibility of trade friction response, investment dissension and other legal services, enhance risk prevention and control capabilities. this activity will be normalized future conduct, and further expand the scope of the country in 2017. "Lin Shunjie said.

CCPIT also plans to organize enterprises to Egypt in September visit, emphasis on the Egyptian Suez Economic and Trade Cooperation Zone. "We want to invest in Chinese companies that intend to recommend to the economic and trade cooperation zone settled, the Chinese technology, the introduction of capital and surplus capacity in Africa." Lin Shunjie said.

In addition to Africa, "West Wing," Latin America "East Wing" is also a focus. October 14-15, with the Hebei Provincial People's Government of the CCPIT, China People's Bank (pending), the Inter-American Development Bank co-hosted the 10th China Tangshan in Hebei - Latin America Business Summit. This summit will be set up trade and investment exchanges and cooperation in production, financial services, research park cooperation topics. Through the exchange of dialogue, negotiation shows and other activities, to enhance cooperation between our business confidence, promote pragmatic cooperation in trade and economic pull.

Lin Shunjie said, CCPIT is supporting Tangshan build China - Latin America Industrial Park, hoping to pull through the current Latin America Business Summit to attract more businesses to Tangshan visits, research, cooperation and capacity to promote the export of commodities, contributed to Latin American companies settled in Tangshan.

Cracks domestic overcapacity

Four African Countries Investment Seminar, China - Latin America Business Summit chose Tangshan City, Hebei Province, which highlights the resolve domestic overcapacity urgency. "I hope Hebei glass, steel, cement three industrial transfer abroad as soon as possible, find an opportunity to settle down, let the air a little bit better." Lin Shunjie said.

February 4, the State Council issued the "Opinions steel industry overcapacity to resolve a turnaround Development", proposed Yajian 1-150000000 tons of excess steel production capacity within five years. Steel production accounts for a quarter of the country's Hebei Province, the urgent need for international cooperation to achieve through industrial transformation and upgrading.

However, there are comments that, "along the way" and AIIB and enough to absorb China's excess capacity. February 22, the European Union Chamber of Commerce in China quoted a former World Bank Country Director for China DavidDollar views noted AIIB can lend $ 20 billion in funding each year, but only a year to absorb the Chinese steel industry is currently overcapacity will need $ 60 billion.

In this regard, Lin Shunjie responded, China is in production with their own advantages to help African countries achieve industrialization. Currently, South Africa, countries like Kenya correspondingly higher than the Chinese technology standards in industrialized higher starting point of reform and opening up, infrastructure and other sectors, and therefore, the transfer of industries in China attaches great importance to the process of local development needs, from stimulating local the level of industrial purpose, the realization of mutual benefits.

In his view, the whole, Chinese enterprises in Africa will have a huge development advantage. "Last December, I visited Ethiopia East Industrial Park. For example, there is a Jiangsu crude steel enterprises in China for three consecutive years are in the backlog of state, started the day one day lost, but do not start a greater loss, but Ethiopia, the price of crude Jiangsu 10 times in a year to expand production fivefold, and is expected to increase 10-fold in three years. As another example, there is a Jiangsu textile enterprises in China in the basic cut-off situation, but how much can sell how much to produce in Ethiopia. "

Meanwhile, Lin Shunjie also admitted that the development path of China in Africa, there are also resistance. For example, Ethiopia is very unstable exchange rate, overnight can depreciate 10% to 30%, while the amount of foreign exchange can be changed and very little, which gave two outstanding companies brought a lot of difficulties. In the future, this may also be further hindered Chinese companies to repatriate profits into the development of third-party market.

"These issues need to be government and public service agencies such as CCPIT enterprises to provide professional services, lobbying the local government." Lin Shunjie said CCPIT has been suggested to the Government to provide policy advice to countries such as Ethiopia, helping them to carry out industrial park construction for Chinese enterprises, "Bao Tuan sea" to create conditions.

Thailand Rayong Industrial Park is one of 16 national foreign trade and economic cooperation zones in our building to automobile and motorbike, new materials, new energy, electronic machinery industry for the development of the main line.徐根 Luo, general manager of the industrial park to the 21st Century Business Herald reporter pointed out that domestic traditional industries in Thailand have great prospects for development, such as iron and steel in the country has a surplus, but Thailand still rely on imports, if we can put products into Thailand, sales channels better than the domestic, but also by some of the domestic policy implications Thailand. He believes that the industrial park more formation of industrial clusters, so that different scale enterprise development can be linked, sharing of resources, collaboration within the park enterprises to build a strong ecosystem, promote the advantages of our production capacity and equipment of the collective advantages of the sea.