An op­por­tu­nity for ex­pan­sion

China Daily (USA) - - CHINA INTERNATIONAL IMPORT EXPO - By ZHONG NAN zhong­nan@chi­nadaily.com.cn

Event pro­vides a plat­form for ideas, in­no­va­tion and fur­ther ex­changes

The first China In­ter­na­tional Im­port Expo has built a com­pre­hen­sive plat­form for the coun­try’s State-owned en­ter­prises to raise im­port vol­ume and ex­pand co­op­er­a­tion with global com­pa­nies in areas from equip­ment pro­cure­ment to pro­duc­tion ca­pac­ity co­op­er­a­tion in the third-party mar­kets, said SOE reg­u­la­tors and busi­ness lead­ers.

The State-owned As­sets Su­per­vi­sion and Ad­min­is­tra­tion Com­mis­sion has or­ga­nized a gen­eral pur­chas­ing group and 95 teams formed by China’s cen­trally ad­min­is­tered SOEs to par­tic­i­pate in the CIIE. They have taken part in 58 sup­port­ing events and ac­tiv­i­ties dur­ing the Shang­hai expo.

Peng Hua­gang, deputy sec­re­tary-gen­eral and spokesship man of SASAC, said a to­tal of 1,400 cen­tral SOEs and sub­sidiaries with more than 17,000 pur­chasers have ap­plied for the expo, as high­tech prod­ucts and tech­nol­ogy are set to draw the spot­light at im­ports dur­ing the expo.

“As China is on the way to fur­ther up­grade its in­dus­try struc­ture, SOE pur­chas­ing groups seek suit­able prod­ucts from in­dus­trial ro­bots and avi­a­tion elec­tron­ics to ma­chine tools and ra­di­a­tion ther­apy equip­ment in the expo as many global com­pa­nies have brought their lat­est tech­nol­ogy to the event,” said Li Jin, chief re­searcher at the China En­ter­prise Re­search In­sti­tute.

Ning Gaon­ing, chair­man of Sinochem Group, said as many parts of the world are fac­ing chal­lenges cre­ated by pro­tec­tion­ism and iso­la­tion­ism, the expo is a prac­ti­cal mea­sure for China to fa­cil­i­tate global trade flow and the group plans to im­port more qual­ity crude oil, fer­til­izer and high-end chem­i­cal prod­ucts to meet China’s grow­ing de­mand for dif­fer­ent in­dus­tries.

Sinochem im­ported 349 mil­lion met­ric tons of fos­sil fuel, mainly crude oil, with to­tal cost of $180.54 bil­lion be­tween 2003 and 2017, while it also pur­chased 42.44 mil­lion met­ric tons of fer­til­izer and 2.78 mil­lion met­ric tons of plas­tic goods from global mar­kets.

Lin Wei, a KPMG part­ner in China, said the CIIE helps the world un­der­stand that SOEs are com­mer­cial for-profit or­ga­ni­za­tions like other For­tune 500 com­pa­nies.

He said SOEs, as a key fea­ture of the Chi­nese econ­omy, and cer­tainly have a need to pur­chase goods and ser­vices at the right price. While they are un­der gov­ern­ment own­er­ship, they also have obli­ga­tions to their other share­hold­ers. Mixed-owner- re­form of the SOEs that have been on­go­ing is a process to make the SOEs more mar­ket-ori­ented.

“SOEs ex­pand­ing and ac­quir­ing busi­nesses over­seas is an­other as­pect of glob­al­iza­tion and mar­ket ori­en­ta­tion. Their par­tic­i­pa­tion in the CIIE will help the expo par­tic­i­pants de­velop a bet­ter un­der­stand­ing of the SOEs,” said Lin.

Yu Xubo, pres­i­dent of COFCO Corp, China’s big­gest agri­cul­tural prod­ucts sup­plier by rev­enue, said with en­hanced part­ner­ship with global com­pa­nies from var­i­ous sec­tors, the expo boosts the pro­por­tion of pro­duc­tion ca­pac­ity co­op­er­a­tion and in­dus­trial chain build­ing in the cen­tral SOEs’ busi­ness cat­e­gories to de­velop mar­kets re­lated to the Belt and Road Ini­tia­tive in the long run.

Weng Jiem­ing, SASAC’s vice-chair­man, said the SOEs will ex­pand their col­lab­o­ra­tion with ca­pa­ble global com­pa­nies and do­mes­tic pri­vate com­pa­nies to form com­mer­cial groups to de­velop mar­kets.

Though en­ergy and in­fra­struc­ture devel­op­ment still ac­count for a ma­jor part of the op­er­a­tions for SOEs work­ing in economies re­lated to the ini­tia­tive, Weng said they will trans­fer more tech­nolo­gies and prac­ti­cal ser­vice so­lu­tions to part­ners to pur­sue win-win and sus­tain­able growth.

Of­fi­cial data re­leased by the SASAC showed that cen­trally ad­min­is­tered SOEs own 10,791 sub­sidiaries in 185 coun­tries and re­gions with to­tal as­sets ex­ceed­ing 7 tril­lion yuan ($1 tril­lion), by the end of 2017. They gained 4.7 tril­lion yuan in sales rev­enue and 106.4 bil­lion yuan profit last year.

Weng added SOEs have un­der­taken 3,116 projects in sec­tors such as rail­way and in­fra­struc­ture con­struc­tion, air­port devel­op­ment, telecom­mu­ni­ca­tion, ship­ping and power gen­er­a­tion in mar­kets in­volved in the Belt and Road Ini­tia­tive since 2013. over­seas

FENG YONGBIN / CHINA DAILY

Ro­bots are the cen­ter of at­ten­tion dur­ing the China In­ter­na­tional Im­port Expo in Shang­hai on Thurs­day.

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