“One Belt One Road”: Its relevance to the European Companies

Written by Kening Zhang, Minister for Economic & Commercial affairs, Chinese Mission to the EU

Kening Zhang is Minister for Economic & Commercial affairs, Chinese Mission to the EU

Kening Zhang is Minister for Economic & Commercial affairs, Chinese Mission to the EU

Chinese President Xi Jinping raised the initiative of jointly building the Silk Road Economic Belt and the 21st Century Maritime Silk Road in September 2013, since when it has attracted close attention from all over the world.

The initiative to jointly build the Belt and Road, embracing the trend towards a multi-polar world, economic globalization, cultural diversity and greater IT application, is designed to uphold the global free trade regime and the open world economy in the spirit of open regional cooperation. It is aimed at promoting orderly and free flow of economic factors, highly efficient allocation of resources and deep integration of markets; encouraging the countries along the Belt and Road to achieve economic policy coordination and carry out broader and more in-depth regional cooperation of higher standards; and jointly creating an open, inclusive and balanced regional economic cooperation architecture that benefits all.

——Vision and Actions on Jointly Building Silk Road Economic Belt 

and 21st-Century Maritime Silk Road

European companies might have doubts and bear questions in mind. What relevance does the initiative have for them? Where do the business opportunities lie? How could they participate? Hereby some observations and thoughts are to be shared in the hope that they could understand better the initiative.

China-EU trade will be infused with new driving forces

In consideration of the existing huge trade volume between China and the EU countries, the Belt and Road could be a further impetus to improve each other’s market access and trade facilitations. It is in line with the interests of both sides to further remove investment and trade barriers for the creation of a sound business environment in order to unleash the potential for expanded cooperation. Take the customs cooperation as an example; we could establish a “single-window” in border ports, reduce customs clearance costs, and improve customs clearance capability.

And this is only an appetiser at the great banquet of “One Belt One Road”. European companies, with their advantages in management and technology, could become a positive business force in expanding the trade areas, improving the trade structure, exploring new growth areas of trade, and promoting trade balance between China and the EU. We could also expand mutual investment areas; deepen cooperation in agriculture, forestry, seawater desalination, marine bio-pharmacy, environmental protection industries, renewable energy industries, logistics, marine tourism and many other fields.

Infrastructure construction will become a priority of investment

Facilities connectivity is a priority area for implementing the initiative. On the basis of respecting each other’s sovereignty and security concerns, countries along the Belt and Road could improve the connectivity of their infrastructure construction plans and technical standard systems, jointly push forward the construction of international trunk passageways and form an infrastructure network connecting all sub-regions in Asia and between Asia, Europe and Africa step by step.

We are fully aware of the enthusiasm behind the 57 countries that apply to become the founding members of Asia Infrastructure Investment Bank. Quite a few of them come from Europe. We both understand that there is great potential lying in the infrastructure constructions. The Eastern and Central Europe countries may need to update the transport devices and facilities. The capital and technology of Western European countries may be looking for the ideal investment projects. It is not a coincidence that Europe is also advocating “Connecting Europe” policy to close the gaps between member states transport networks, remove bottlenecks as well as overcome technical barriers such as incompatible standards for railway traffic. China and the EU happen to share the same view that the infrastructure construction would provide a vast space and promising prospects for the business communities.

Various cooperation mechanisms will facilitate commercial activities

The world economic integration is accelerating and regional cooperation is on the upswing. China complies with the trend and wishes to promote the bilateral and multilateral mechanisms among the Belt and Road countries to a higher level. We believe that a stable and solid cooperation system could be a strong support to the trade relations. We not only give full play to the bilateral mechanisms, encourage the building of FTA with the Belt and Road countries, we also strive to enhance the role of multilateral cooperation mechanisms, including international business forums and exhibitions at regional and sub-regional levels.

Europe has rich experiences in promoting regional cooperation and integration. European companies have already benefited a lot from the EU single market which has removed most trade barriers for goods, adopted some common regulation policies and realised the free movement of capital and labor among the member states. We hope that Europe’s successful practices in this respect will contribute to the regional cooperation and integration among the Belt and Road countries so as to create more reliable business environment and abundant investment opportunities for the enterprises. With various cooperation mechanisms, the investors’ interests and activities could be safeguarded to the maximum extent.

The Belt and Road Initiative intertwining with Junker’s Investment Plan will lead to a win-win situation for both Chinese and European companies

At one end of the Belt and Road, the EU is striving to recover from the crisis. Junker’s Investment Plan not only invites the participation of all EU member states, but also welcomes the contribution coming from outside of the EU. At the other end of the Belt and Road, China’s economic development is entering into a “New Normal”, focusing on quality and efficiency. Chinese companies, together with the European counterparts could leverage this initiative to promote business in each other’s market and explore the great potential of markets in the countries along the Belt and Road.

For the Chinese government and the EU institutions, it is high time they took a pragmatic approach and incorporate the Initiative with Junker’s Investment Plan. We will be very happy to see European companies’ involvement in achieving a win-win scenario under the framework of “One Belt One Road”. In this regard, any initiatives and proposals from the business communities will be greatly welcomed.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

Destabilizing Lebanon after burning Syria; plotting putsch at home: King and Crown Prince of Saudi Arabia

Why Eurozone’s problems may end in a few months

EU members commit to build an integrated gas market and finally cut dependency on Russia

Migration has set EU’s political clock ticking; the stagnating economy cannot help it and Turkey doesn’t cooperate

Earthquake: Monte Dei Paschi Di Siena

European Youth Forum celebrates 20 years of fighting for youth rights

Population in crisis hit EU countries will suffer for decades

Junior Enterprises as a solution for Youth Entrepreneurship

China and UK relations post Brexit as EU addresses Chinese takeovers

European Young Innovators Forum @ European Business Summit 2014: Europe for StartUps, vision 2020

Turkey’s Erdogan provokes the US and the EU by serving jihadists and trading on refugees

The banks want now free capital from taxpayers

What do Europeans believe about the crisis and the possible way out?

Tackling youth unemployment through the eyes of a European entrepreneur

10 months were not enough for the EU to save the environment but 2 days are

Europe’s top court hears Intel and sends € 1.06 bn antitrust fine to review

Will Europe be able to deal with the migration crisis alone if Turkey quits the pact?

France and Poland to block David Cameron’s plans on immigration

Manufacturers Get Smarter for Industry 4.0

It’s EU vs. Google for real: the time is now, the case is open

Elections results: Austerity’s black to prevail in the new multicolored German government

EU free-trade agreements with Canada and US: imagine the fallout if put to national referendums

Managers’ pay under fire

A new world that demands new doctors in the fourth industrial revolution

Governments and non-state actors need to take urgent action to meet Paris Agreement goals

European Commission: Does Apple, Starbucks and Fiat really pay their taxes?

The Americans are preparing for the next financial crisis

Kellen Europe Hosts EuroConference 2016

Failing to see reality or deceiving the masses? The EU about poverty and social exclusion

Eurozone: Economic sentiment-business climate to collapse without support from exports

Eurostat overturns Commission’s assessment of the economy

Can the Americans alone determine the future of Syria?

EU Parliament: It takes real banks to fight unemployment and recession

Is there a chance for the West to win the war on terror?

On Grexit: Incompetence just launched the historic Ultimatum that could open “pandora’s box”

Refugee crisis: Commission proposes a new plan urging EU countries to help Italy

The challenges of mental health: an inconvenient reality

Rising political extremism in Europe escapes control

European Youth Forum demands immediate action & binding agreement on climate change

Four major resources for new European young entrepreneurs

Far from a healthy Health Workforce: lack of workforce planning leaves our citizens without access to proper care

“BEUC cautions against TTIP that would seek to align EU and US chemicals management frameworks”

Crimean crisis: not enough to slow down European indices

Access to health in the developped and developing world

Macro-Financial Assistance: Europe’s way to control Ukraine?

Eurozone: Economic Sentiment Indicator recovering losses

Dutch voters reject EU-Ukraine partnership and open a new pandora’s box for the EU

COP21 Breaking News_03 December: There is a new draft agreement on the negotiating table

CDU-SPD agree the terms for EU’s Banking Union

Who threatens the lives and livelihoods of Ukrainians?

JADE Testimonial #3: Sebastian @ Fundraising

At last a solid base for the European Banking Union

How Greece was destroyed

Will the European Court of Justice change data privacy laws to tackle terrorism?

Youth unemployment: No light at the end of the tunnel

Let the Italians have it their way, it may be good for all Eurozone

The MWC14 Sting Special Edition

Berlin repels proposal for cheaper euro

Is the EU’s enlargement over-stretched?

G20: Less growth, more austerity for developing countries

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s