Tril­lion yuan

China Daily (Latin America Weekly) - - Business -

achieved through joint ef­forts in mar­ket devel­op­ment, fi­nanc­ing and op­er­a­tion, Duan said.

Ac­cord­ing to David Wi­jer­atne, growth mar­kets cen­ter leader of Price­wa­ter­house­Coop­ers, one of the global Big Four pro­fes­sional ser­vices firms, those part­ner­ships can prove to be ben­e­fi­cial for both Chi­nese and for­eign com­pa­nies in many ways.

“Gain­ing knowl­edge through for­eign part­ner­ships can help Chi­nese en­ter­prises fur­ther de­velop ex­per­tise, and en­able them to en­hance global cred­i­bil­ity in the in­fra­struc­ture sec­tor,” Wi­jer­atne said in an ar­ti­cle pub­lished on the World Eco­nomic Fo­rum web­site.

“For for­eign com­pa­nies, a col­lab­o­ra­tion with Chi­nese com­pa­nies in in­fra­struc­ture projects in third-party coun­tries can help open up ac­cess to its large do­mes­tic mar­ket. Fur­ther­more, for­eign com­pa­nies can par­take as a pri­vate in­vestor in projects that are risk-guar­an­teed by Chi­nese in­sti­tu­tions, with an im­proved risk-re­turn ra­tio,” Wi­jer­atne wrote.

Wi­jer­atne cited suc­cess­ful part­ner­ship ex­am­ples, wherein for­eign multi­na­tion­als have be­come es­tab­lished equip­ment sup­pli­ers to Chi­nese en­gi­neer­ing, pro­cure­ment and con­struc­tion com­pa­nies and have thereby ben­e­fited from a boost in or­ders both in third­party mar­kets as well as in China.

“Many of these for­eign com­pa­nies also pos­sess pre­vi­ous ex­pe­ri­ence in large-scale projects in devel­op­ing coun­tries that are more com­plex. This is typ­i­cal to B&R projects, with value of trade be­tween China and the Belt and Road economies last year for­eign com­pa­nies able to con­trib­ute by es­tab­lish­ing con­nec­tions with lo­cal stake­hold­ers, as well as hav­ing prior knowl­edge of man­ag­ing an in­fra­struc­ture project in devel­op­ing coun­tries,” Wi­jer­atne wrote.

This can help re­duce op­er­a­tional risks, which may be other­wise fur­ther en­hanced es­pe­cially when oper­at­ing in less fa­mil­iar busi­ness en­vi­ron­ments, he wrote.

Ever since the coun­try pro­posed the Belt and Road Ini­tia­tive, trade and in­vest­ment re­la­tions be­tween China and its part­ners have been strength­en­ing, of­fi­cial data showed.

Trade vol­ume be­tween China and other Belt and Road economies ex­panded 17.8 per­cent year-on-year to 7.4 tril­lion yuan ($1.14 tril­lion) last year, ac­cord­ing to the Min­istry of Com­merce.

China’s ex­ports to coun­tries and re­gions in­volved in the ini­tia­tive in­creased by 12.1 per­cent in 2017 from one year ear­lier, while im­ports from the economies rose 26.8 per­cent year-on-year, ac­cord­ing to the com­merce min­istry.

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