On May 16, the State Council announced the Guiding Opinions on Promoting International Cooperation in Production Capacity and Equipment Manufacturing. The Opinions clearly stated that developing countries were the key countries, and actively developed the markets of developed countries, and construction machinery and other key industries were classified and implemented in an orderly manner. Some people call it the “Belt and Road 2.0” version. Among them, promoting the construction machinery and other manufacturing companies to improve the global business network has also become one of the main tasks of the Opinions.
So, in the face of the overwhelming "Belt and Road" news, how many new opportunities have China's construction machinery companies seized? How many trips have they taken?
"Belt and Road" makes going out more competitive
"Internationalization" is an important step in the current development strategy of Chinese construction machinery enterprises. An important magic weapon to deal with the "new normal" of the Chinese construction machinery market is to "go global". Against this background, the "Belt and Road" plan has come and has become an inevitable choice to solve the excess capacity of construction machinery, obtain resources, and develop strategic depth. In fact, in recent years, the pace of "going overseas" in the construction machinery industry is also accelerating. According to customs data, the export value of construction machinery products in China in the past four years was 15.09 billion, 18.224 billion, 19.53 billion, and 19.792 billion US dollars, a year-on-year increase. They were 53.8%, 14.48%, 1.9%, and 1.33%. Nevertheless, the export potential of such products is still huge. According to forecasts, under the dual advantages of the “Belt and Road” policy and product cost-effectiveness, the export value of domestic construction machinery products is expected to increase to 54 billion U.S. dollars in 2020, driving the industry's revenue to climb to 105 billion U.S. dollars.
Xi Jinping revealed at the 2015 Boao Forum for Asia that nearly 60 countries have clearly stated their support and participation in the “Belt and Road” initiative. Even more exciting is that a number of major projects along the “Belt and Road” have achieved early gains, involving railways, highways, natural gas pipelines, nuclear power construction and other aspects. In the process of vigorously promoting infrastructure, domestic infrastructure giants are expected to become the mainstay of foreign investment, and construction machinery will benefit from the export of infrastructure tools. For example, in Southeast Asia, there are China-Myanmar Railway, China-Laos-Thai Railway, Indonesian Ports and Development Zones, etc .; Central Asia includes China-Guizhou Railway, China-Thailand Highway Phase II, etc., and these areas are Chinese projects such as Sany Heavy Industry, Liugong Hot spots for export of machinery enterprises.