Firms seek windfall from B&R

Updated 2017-12-01 10:31:56 China Daily

While China's Belt and Road Initiative has created huge growth opportunities for Chinese companies, many Western multinationals are also actively angling for a piece of the trade initiative, with international corporations like Honeywell and General Electric tweaking their businesses to win more orders.

U.S. conglomerate General Electric recently decided to further extend its partnership with Power Construction Corp of China, which provides engineering and construction services focusing on renewables, by exploring new wind power opportunities in Pakistan and abroad.

This is part of GE's more than 10 Pakistan power projects with Chinese engineering, procurement and construction contractors in recent years. It is also planning to invest in electric power grids, new energy and oil and gas, in countries and regions involved in the Belt and Road Initiative with Chinese partners.

"China's uniquely advantageous position on the global economic stage is incomparable. The country offers an enormous wealth of hard-earned experience as well as technology that can be shared and transferred among developing countries," said Rachel Duan, president and CEO of GE China.

The company is uniquely placed to foster a complete ecosystem by building communication bridges between foreign and Chinese enterprises, and connecting players from the upper, middle and lower rungs of the industry's value chain, she added.

In 2016, Chinese construction and engineering companies ordered .3 billion worth of equipment from GE for installation in the countries and regions involved in the Belt and Road Initiative. GE plans to bid for more orders including natural-gas turbines and other power equipment in the upcoming years, she said. "We are confident of winning these orders," said Duan.

Honeywell International Inc, the U.S.-based manufacturing and technology conglomerate, said it has been partnering with leading Chinese companies to explore infrastructure development and other opportunities in emerging markets, to support the country's Belt and Road Initiative.

Shane Tedjarati, president of Honeywell Global High Growth Regions, said his group was well-positioned to support the Belt and Road Initiative through its China growth strategy and portfolio.

Honeywell's high-growth regions consistently drive more than 70 percent of the company's growth and China has the biggest chunk of that, he said, adding that China has been the company's second largest market since 2013 and is currently the single largest contributor to its global growth.

Executives at mining giants BHP Billiton and Rio Tinto also told China Daily that they are optimistic that the Belt and Road Initiative could revive China's metal exports, which will in turn boost demand for iron ore.

"Most of the infrastructure work will require steel, and we see this a potential at Rio Tinto," said Jean-Sebastien Jacques, CEO of Rio Tinto.

"The initiative is very important, not only to China. Multilateral groups, such as the B20 as you can imagine, are watching the progress closely."

According to Ren Hongbin, chairman of China National Machinery Industry Corp, also known as Sinomach, Chinese EPCs in engineering procurement construction are facing various challenges including international competition, geopolitical risks, financing and conflicts of culture.

"Almost every project requires cooperation across regions, companies and industries, considering the increasing difficulty and complexity of infrastructure projects along the Belt and Road," said Ren.

Experts said the initiative could well be a windfall for the multinationals and many of them are gearing up for it.

Zhang Jianping, director of international economic cooperation at the National Development and Reform Commission, said the Belt and Road is a historical precedent and enables companies from home and abroad to jointly explore overseas markets, creating opportunities for domestic companies and big multinationals alike.

According to the Mercator Institute for China Studies, the economies involved with the initiative account for about 30 percent of the global economy, while figures from China Development Bank show that some 0 billion worth of projects are now either underway or in detailed planning stage.

Many Western firms are interested in being a part of China's Belt and Road Initiative, offering either technological edge or knowledge of local conditions, said Zhang.

Multinationals can also benefit from better connectivity in the long term as these emerging markets will be further developed and improved infrastructure might open new markets and ultimately drive global economic growth, he added.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58January 23 2019 13:21:39

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16January 23 2019 13:21:39

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18January 23 2019 13:21:39

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords