SOEs sign mas­sive deals to ex­pand im­ports

De­spite for­eign com­plaints, com­pa­nies share domest

Global Times US Edition - - BIZOVE -

China’s State-owned en­ter­prises (SOEs) have moved swiftly in heed­ing a na­tional call to ex­pand im­ports of goods and ser­vices, as they sign ma­jor im­port deals in Shang­hai with for­eign com­pa­nies in sec­tors cov­er­ing en­ergy to ma­chin­ery.

As they have been a main tar­get of in­creased for­eign crit­i­cism in re­cent years, Chi­nese SOEs are vow­ing to share op­por­tu­ni­ties in the Chi­nese mar­ket with for­eign part­ners. An­a­lysts said that de­spite un­fair ac­cu­sa­tions aimed at SOEs, they will con­tinue to pur­sue mar­ket-ori­ented re­forms as well as overseas co­op­er­a­tion.

Dur­ing the on­go­ing China In­ter­na­tional Im­port Expo (CIIE) in Shang­hai, China En­ergy Corp on Wed­nes­day pur­chased equip­ment such as tires, en­gines and com­pres­sors from 21 global sup­pli­ers.

China Na­tional Ma­chin­ery In­dus­try Corp (Si­no­mach) on Tues­day signed 21 im­port pur­chas­ing con­tracts with com­pa­nies from 16 coun­tries in­clud­ing the US, In­dia, Ukraine and Por­tu­gal. The con­tracts are val­ued at about $8.4 bil­lion in to­tal.

The Sinochem Group Co also signed pur­chase con­tracts worth more than $11.3 bil­lion with 17 busi­ness part­ners. The com­pany pur­chased prod­ucts in 19 cat­e­gories such as high-qual­ity fer­til­izer and high-end chem­i­cals.

The deals by the SOEs are an ac­tive re­sponse to the gov­ern­ment’s call for in­creas­ing im­ports in an ef­fort to bal­ance China’s trade and bet­ter po­si­tion them­selves as they face in­ten­si­fy­ing for­eign scru­tiny, an­a­lysts noted.

Un­der the gen­eral con­text of boost­ing im­ports, SOEs will take the lead, ac­cord­ing to Hong Jun­jie, a pro­fes­sor at the Uni­ver­sity of In­ter­na­tional Busi- ness and Eco­nom­ics.

“Given the size of SOEs, they wil also be able to make larger pur­chase com­pared with many pri­vate compa nies,” Hong told the Global Times on Wed­nes­day.

Hong also said that for­eign com plaints about SOEs are un­fair and

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