Enterprises set foot in B&R economies

Businesses in Wenzhou are establishing operations in overseas economic and trade zones to serve the purpose of the nation’s Belt and Road Initiative.

Some 53 newly established overseas projects invested by Wenzhou companies are situated in countries and regions related to the initiative, accounting for roughly one-third of all overseas investments made by the city in the past five years, according to data from the city’s commerce bureau.

Enterprises poured in some $1.66 billion in three national-level economic zones in Russia, Vietnam and Uzbekistan, and one provincial-level park in Serbia. All those investments are supervised by the Wenzhou city government.

“In the 160,000-square-meter Pengsheng Industrial Park in the Syra Darya State of Uzbekistan, 10 Chinese companies producing ceramics, cellphones, shoes and pet food have altogether created 1,300 jobs for the locals,” said the bureau’s vice-chief Chen Jian.

Kangnai Group, a renowned shoemaker from Wenzhou, took part in building the Ussuriysk Economic and Trade Cooperation Zone in Russia.

Thus far, 228 Chinese enterprises have established investments in these four zones, generating combined annual revenue of $2.2 billion and driving up $880 million worth of exports.

In the first nine month of 2017, Wenzhou exported 30.5 billion yuan ($470 million) of merchandise to Belt and Road-related economies, up 12.4 percent year-on-year, while imports more than doubled from the same period of 2016 to 4.3 billion yuan.

Chemicals maker Zhejiang Huafon New Materials Co Ltd also chose to set up its manufacturing base overseas and has now completed the site selection process for its plant in Pakistan.

Company chairman You Xiaoping said the firm is looking for investment opportunities through its overseas marketing network, with the hope of leveraging the reduced tariff and transportation efficiency to boost sales across Belt and Road economies.