The “Belt and Road” construction continues to advance, and Chinese manufacturing opportunities and challenges coexist.

At present, we must learn from the experience of overseas investment in developed countries such as Japan and strive to recreate “One China” overseas, accelerate the deployment of capital-based and labor-intensive industries in the “Belt and Road” region, and transform domestic surplus industrial projects into overseas industries, thereby turning China into an overseas industry. The industrial reach extends to the world and helps to transform the domestic industry.

Since General Secretary Xi Jinping proposed the “One Belt and One Road” strategy in 2013, the uneven development of the global economy has gradually emerged, and the world’s situation has gradually changed. The United States withdrew from the TPP Agreement (TransPacific Partnership Agreement) and instead sent “One Belt and One Road” to China. The delegation, therefore, called the blockage of the "island chain" of the Chinese economy.

With the progress of the “Belt and Road” initiative, the fruitful achievements of the “Belt and Road” international cooperation summit forum held in Beijing in May 2017 covered a total of five major categories: policy communication, facility connectivity, unimpeded trade, financial financing, and people-mindedness. , A total of 76 major items, more than 270 concrete results.

"Belt and Road" International Cooperation Summit Forum

Under the guidance of the “five links” goal (policy communication, facility interconnection, smooth trade flow, financial financing, and people-to-people links), point-to-face, line-to-film, aiming to achieve an orderly and free flow of economic elements, efficient allocation of resources and deep market integration Promote the formation of "One Belt and One Road" regional cooperation. At present, the “One Belt and One Road” strategy is an important direction for China to go global, and it is also an opportunity for the development of industrial transformation and upgrading.

From the implementation perspective, the "One Belt and One Road" strategy has been deeply embedded in the country's opening up strategy.

The "One Belt and One Road" strategy is the beginning of China's full integration into the global economy and its role as the mainstay of the global economy. The "five links" advocated by the "One Belt and One Road" strategy has exceeded the scope of free trade agreements and investment in terms of content, not only trade and investment, but also widely involved civil aviation communications, inspection and quarantine, cultural exchanges, scientific and technological innovation, and news cooperation. And other fields.

As a result, investment enthusiasm has been boosted and investment in the “One Belt and One Road” has been accelerating. From 2014 to 2016, China’s total investment in countries along the “Belt and Road” has exceeded US$50 billion, and in the next five years, China’s investment in the region is expected to reach US$150 billion. .

At present, the “One Belt and One Road” strategy is an open development strategy. It is rooted in the domestic industry and then on a new level. Therefore, we must integrate the manufacturing industry into the construction of the “Belt and Road Initiative” and bring development opportunities for the further development of China's manufacturing industry.

China's manufacturing industry has been integrated into the “Belt and Road Initiative”. The first direction of work is to shift excess production capacity and turn the domestic industrial burden of heavy chemical industries into high-quality overseas capital.

At present, China's industry has completed the industrial development path of technology introduction, digestion and absorption to independent innovation, and has already formed the international output capability of the industry. At present, we must learn from the experience of overseas investment in developed countries such as Japan and strive to recreate “One China” overseas, accelerate the deployment of capital-based and labor-intensive industries in the “Belt and Road” region, and transform domestic surplus industrial projects into overseas industries, thereby turning China into an overseas industry. The industrial reach extends to the world and helps to transform the domestic industry.

From the industry point of view, world-class development achievements have been achieved in many fields such as industrial raw materials, machinery, and construction projects, and these areas are highly saturated and competitive in the country. Along with the “One Belt, One Road” construction, areas along the “Belt and Road” Has become an important export of China's industries. At present, it is necessary to crack the excess capacity in the “One Belt and One Road” area to mitigate risks.

First, the policy risk of investment and construction.

Manufacturing projects are large in scale and have a long construction cycle. They must attach importance to the political stability and policy coherence of the host country. In particular, projects involving and leading state-owned enterprises need to be highly recognized and supported by the host government. This is because most countries and regions along the Belt and Road Initiative are deeply involved in the “game of wrestling” in the game of big powers, and there are multiple contradictions in the internal transition, such as the handover of leaders, democratization, and ethnic conflicts.

China's Manufacturing Industry Integrates the Construction of “One Belt and One Road”

In the past, some international companies had experienced failures in the host country’s policy changes when they made overseas investments. For example, Korean steel company POSCO withdrew its annual production capacity of 6 million tons in Karnataka, India, in July 2013. Due to the frequent changes in the local land policy and iron ore mining policy, the project was delayed for eight years.

Second, the risk of management of management links.

The multi-ethnic, multi-cultural, multi-lingual, and multi-religious religions along the “Belt and Road” initiative pose challenges to the company's ability to operate overseas projects. At this stage, the investigation of investment by enterprises in investment areas focuses more on resources, markets, direct costs, and preferential taxation systems. They have inadequately taken into account the “soft environment” and have insufficient experience in dealing with emergencies such as labor-management relations and religious beliefs.

Third, the environmental risks in the production process.

At present, the relevant environmental protection legal systems in the area along the “One Belt and One Road” are incomplete, and the operating environment is yet to be matured. The development environment and industrial level of most countries/regions are lower than the level of China in the year 2000 or so. Therefore, enterprises should be vigilant against the high cost risks in the process of gradual improvement of environmental protection policies, and avoid the occurrence of environmental protection facilities that have been continuously upgraded in recent years, and environmental protection investments have invaded the profits of enterprises.

Secondly, the “Made in China 2025” and “Belt and Road” strategies should be interconnected to promote high-end equipment to go global.

In recent years, China's manufacturing industry has reached a new height and a number of celebrity fields such as high-speed rail, nuclear power, engineering machinery, and high-end ocean engineering have emerged. The progress has been rapid in the fields of aerospace, satellite communications, etc. Large domestic aircraft have made a successful first flight. Beidou Satellite The positioning system is being networked globally.

“Made in China 2025” is an important weapon for China to build its international competitiveness in manufacturing, and it is a program of action for leading and implementing strategies for building a strong nation, including the manufacturing innovation center construction project, strengthening of basic engineering, smart manufacturing engineering, green manufacturing engineering and high-end Equipment innovation project. Through the implementation of the five major projects, China's manufacturing industry will be promoted to lead the world and promote the development of ten key areas such as information technology, high-end CNC lathes and advanced rail transit.

The implementation of the “Made in China 2025” strategy is promising in the “One Belt and One Road” area. It will promote international equipment manufacturing cooperation in high-speed railways, aerospace, power equipment, ocean engineering and other fields to strive for exports in the “One Belt and One Road” area. Market and cooperative production opportunities. For example, the “Belt and Road” area is in urgent need of transformation and upgrading of infrastructure, mineral resources mining technology, and communication and interconnection technologies.

Accelerate the search for "Belt and Road" cooperation opportunities

At present, China’s equipment enterprises must speed up the search for “One Belt, One Road” cooperation opportunities and provide room for the growth of China’s high-end equipment, so as to accelerate the improvement of China’s high-end equipment adaptability and image in the international market, and promote the export of Chinese manufacturing products. Turning to technological output, we will take a new step in the international industrial division of labor.

Third, we must graft China's mature experience into the “One Belt and One Road” region to promote industrial cooperation with the park economy.

Development experience shows that since China's reform and opening up, industrial parks have played an important role in the scale of investment, attracting funds, technology, talent, and information, and have achieved effective agglomeration, scale, and intensification of industrial development. According to statistics, as of March this year, Chinese enterprises have built 56 economic and trade cooperative industrial parks in 20 countries along the “One Belt and One Road”, with a total investment of more than US$18 billion. At present, it is necessary to speed up the construction of free trade zones in the “Belt and Road” region and establish overseas economic cooperation zones.

From the policy level, we will accelerate the construction of free trade zones in neighboring countries along the “Belt and Road” initiative and encourage China's local governments and industrial parks to set up pilot zones for peer-to-peer industrial parks alongside countries along the route, relying on the park to export competitive products and industries in China.

At the operational level, China's capital and technological advantages are combined with the urgent development requirements of the “One Belt and One Road” regional government to encourage innovation in foreign investment and cooperation, through the establishment of overseas economic cooperation parks and domestic demonstration parks.

Therefore, with reference to the Suzhou Industrial Park construction model and other forms of development, from the development of ideas, management models, systems, mechanisms and personnel team building, encourage China's industrial parks to "go out", relying on the "Belt and Road" along the national industrial park to carry out project cooperation . In the end, the industry chain is built around the value chain, and the industrial chain is used to create the transnational industrial chain cooperation form of the park economy.

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