Success sought across Belt and Road Initiative
Shandong is taking measures to support enterprises seeking business opportunities in countries involved in the Belt and Road Initiative, as well as fostering its brands abroad.
“Countries involved in the Belt and Road Initiative have relatively low business costs and abundant raw materials, and so have become a major destination for companies from Shandong,” said Zhang Xingcheng, an official from the province’s Department of Commerce.
Zhang said that key business projects between Shandong and countries along the Belt and Road have made some positive progress, and that currently, cooperation is mainly concentrated on rubber tires, textiles and clothing, machinery and equipment, and electronic and electrical appliances.
Statistics from the Department of Commerce in Shandong province show that companies in the province invested 2.51 billion yuan ($395.57 million) in countries along the Belt and Road in the first quarter of 2018, up 96.1 percent year-on-year.
Twenty-two enterprises and organizations in Shandong obtained approvals from the authorities to invest in countries taking part in the Belt and Road Initiative. Total investment contributed by Chinese investors in Q1 amounted to 3.14 billion yuan, an increase of 47.7 percent year-on-year.
China has approved the building of 20 national-level overseas economic and trade cooperative zones in the countries and regions involved in the Belt and Road Initiative, of which four are being developed by Shandong.
The Sino-Hungarian Borsod Industrial Zone, developed by Yantai Wanhua Group, is a national-level overseas economic and trade cooperation zone in China’s chemicals industry. The zone plays an important role in supporting Shandong to build an industrial cluster abroad. By the end of 2017, the cooperation zone reported a total production value of $1.9 billion.
Shanghai Cooperation Organization nations, which play a significant role in supporting the Belt and Road Initiative, have long been attractive business destinations for Shandong companies. Taking Qingdao as an example, companies from the coastal city had invested in 74 projects in SCO countries as of the end of 2017, with total investment reaching 3.2 billion yuan.
Qingdao-based home appliance producer Haier’s production base in Russia achieved 40 percent sales revenue growth year-on-year last year, according to the company’s statistics. It also created nearly 2,000 jobs in Russia.
Weichai Group’s India factory, put into operation in 2013, is the first production facility built by the heavy truck engine and component manufacturer in a foreign country. It reported positive profits in its first year of operation.
Through this plant, Weichai has introduced marine and hydraulic products and high-power generator sets to South Asian markets.
Kerui Petroleum, a high-end oil equipment manufacturer in Shandong province, has been continuously expanding its market in Kazakhstan, Uzbekistan and other Central Asian countries, as well as Turkey and Russia.
Kerui has also built natural gas filling stations in Uzbekistan to promote green development.
Employees in Weichai Group’s Indian factory celebrate its first engine export.