Chinese Enterprises should Stick Together to Do Business Overseas under the Belt and Road Initiative
On May 14-15, the highly anticipated Belt and Road Forum for International Cooperation was held in Beijing. Altogether 29 heads of state and government leaders as well as heads of a number of international organizations attended the forum, which once again confirmed the appeal of Chinese initiative in the world and reflected the inclusiveness and openness of the forum.
In more than three years, the construction of "Belt and Road" has achieved fruitful results, which added vitality for the recovery and sustainable development of world economy. Energy cooperation is an important part of "Belt and Road" construction. Energy and electricity interoperability will help promote economic and trade links between countries and further achieve win-win situation. It is fair to say that global energy Internet is a new engine of "Belt and Road" construction.
In the principle of "peaceful cooperation, openness and tolerance, mutual learning, and mutual benefit", central enterprises have been actively participating in "Belt and Road" construction. In addition, private enterprises with Far East Holding Group as the representative will also be an important contributor of "Belt and Road" construction. Last month, I went to Myanmar and Cambodia to inspect projects. I find that the two countries are relatively open and that there are a lot of business opportunities. Chinese enterprises really need to strengthen cooperation with international enterprises, so as to introduce technologies and experiences and go global.
Countries along "Belt and Road" have become the focus of Far East Holding Group’s business development and investment. "Belt and Road" opens the infrastructure demand of these countries. These demands link up these countries and bring opportunities for domestic new energy companies.
Fitting National Strategy and Making Solid Progress
With the building of "International Far East", the international layout of Far East Holding Group is also gradually coming off. "International Far East" is closely related with "Belt and Road" development, which can promote the whole industry chain output of Far East and accelerate its innovation and transformation.
Far East Smarter Energy Co., Ltd. (600869) as the main business of Far East Holding Group positions itself as the "world's leading intelligent energy and intelligent city system service provider". It has always insisted on taking major opportunities brought by "Belt and Road" initiative, new electricity transformation and energy Internet trillion market opening as the guide, focusing on key markets, enhancing market share through fully integrating its own advantages in the field of intelligent energy, and accelerating the market development of intelligent energy projects, which achieve remarkable results.
At present, we have gradually accumulated many important strategic customers including GE, Siemens and Acciona Energy, carried out a number of cooperation with them in locomotive cable, wind power and other aspects, and expanded its influence to "Belt and Road" countries through these important strategic customers. At the same time, we follow the step of large state-owned enterprises and central enterprises to actively promote the export of products and services to overseas countries.
During the past 10 years when we acted strategic partner of local Philippine companies, we have provided strong support for the normal operation of the Philippine power system. As a wind power cable supplier, we participated in wind power projects in Thailand, India and other countries together with Gold Wind Technology. We also exported wind power cables in cooperation with Gold Wind Technology to Vietnam.
As a provider of ultrahigh-voltage cables, we undertook related Bangladesh power plant projects together with China National Machinery Import & Export Co., Ltd., participated in Bali Island coal-fired power plant project in cooperation with China Huadian Cooperation, and cooperated with China National Materials Co., Ltd. in cement plant project in Saudi Arabia...
Chinese Enterprises should Stick Together to Do Business Overseas
Personally speaking, I am very optimistic on the prospects of "Belt and Road". I advocate that Chinese enterprises should actively stick together to expand overseas market.
With the implementation of "Belt and Road" and acceleration of international capacity cooperation, the "going out" of Chinese enterprises will enter a new stage of development. The "going out" of Chinese enterprises will gradually transform to capital output from the output of products and services. With infrastructure construction as the key and production cooperation as the starting point, industrial chain labor division and collaboration will be re-optimized in this process. Asset operation efficiency and safety level will be steady improved and recognized by the local community and regulatory agencies, which is good for the establishment of a good reputation in the international market.
In fact, in addition to Far East Holding Group, Chinese enterprises in the same industry also began their layout in Belt and Road countries. The reason why the initiative can attract the active layout of domestic new energy companies, I think, is that this initiative opens and links up the demand for energy in these countries.
Belt and Road infrastructure investment not only brings more space for imagination to future overseas investment, but also optimizes investment environment in these countries. Without "Belt and Road", we may find it difficult to invest in some of these countries. Countries along Belt and Road are very supportive of this initiative and willing to set foot on this express to attract more investments.
Chinese Enterprises Need to Improve Themselves in Going out
I think a more important thing in the going out of Chinese enterprises is that they must lay a solid foundation.
Under the concept of "internationalized thinking, capital, talent and market", Far East Holding Group put forward the goal of "international business accounting for 20% and foreign employees accounting for 20% by 2020", and developed detailed planning and implementation measures for international development.
In the future, Far East will keep up with the pace of "Belt and Road" from the following three directions:
The first is basic elements, namely "Far East" companies with outstanding main industry, strong profitability, possession of well-known brands, high-quality management, and strong innovation ability;
The second is international factors, i.e., "Far East" companies with international competitiveness;
The third is subjective elements, including leadership, high staff quality, corporate culture, social responsibility, etc.
I believe that Chinese companies that can keep up with the pace of "Belt and Road" not only need to sell products and services, but also enhance the ability self-learning, adaptation and resources integration and continuously create value for the benefit of society.
(By Jiang Xipei, Party Secretary and Board Chairman of Far East Holding Group Co., Ltd.)