Li Keqiang: International capacity cooperation opens a new window 1+1+1

In the subway company of the famous Brazilian city of Rio de Janeiro, a silver train that crossed the ocean from Changchun, China, stood in a trial run on the track.

Accompanied by the governor of Rio, Chinese Premier Li Keqiang walked into the train to experience the comfort and safety of the train. "This is an opportunity for Chinese equipment and a test for China's equipment manufacturing!" After learning that the Rio citizens were very satisfied with the Chinese-made subway trains, Li Keqiang immediately said that this project should be regarded as a "new paradigm" for China-Pakistan international capacity cooperation. ".

This scene took place on the morning of May 20, 2015 in Brazil local time. Li Keqiang first visited the four Latin American countries after he took office as the prime minister, and "international capacity cooperation" is a core concept throughout the visit.

On the day before Li Keqiang embarked on the visit on May 17, the State Council officially issued the "Guiding Opinions on Promoting International Capacity and Equipment Manufacturing Cooperation." This is the first time that the international capacity cooperation has been promoted in the form of a State Council document, which has been interpreted by public opinion as an "important road map."

In fact, this roadmap has been discussed and deployed at the State Council executive meeting several times. As a new card that China has shown on the global economic stage, international capacity cooperation has also experienced a process of deepening and agreeing with each other. Observers have noticed that the evolution from the initial "two-party" cooperation to "multi-party" cooperation is based on the greatest point of interest of all parties, and the international community has responded positively. The core concept of international capacity cooperation is: countries located in different positions in the global value chain, through the multi-industry, capital and technical cooperation, jointly "sharing" the dawn of industrial civilization and peaceful development, in their deep cooperation, enhance their respective positions and reconstruct The value chain will achieve a "win-win" pattern.

Such an inclusive development concept based on global vision is bound to bring more dividends to China. As Li Keqiang repeatedly emphasized at the Standing Committee, actively participating in global market competition and value chain restructuring through international capacity cooperation is a major opportunity to promote the transformation and upgrading of domestic industries and promote the Chinese economy to the mid-to-high end.

■ In the early days of reform and opening up, relying on the input production line to achieve the “Made in China” that is popular all over the world, now we are also coming to the “industrial output”.

In the executive meeting of the State Council, which is regarded as the "top administrative platform for decision-making", Premier Li Keqiang has deployed international capacity cooperation twice in less than 40 days.

At the executive meeting on December 24, 2014, the deployment of financial support enterprises to “go global” was deployed. Li Keqiang explicitly mentioned the contents related to international capacity cooperation.

On January 28, 2015, in the agenda of the Standing Committee, “Deploying to accelerate Chinese equipment to go out” and promote international capacity cooperation appeared.

"Promoting China's equipment to go global" and carrying out international capacity cooperation is an inevitable demand for China's economic development to today." The Prime Minister said, "This is not only conducive to the current economic development, but also promotes industrial transformation and upgrading, and promotes the Chinese economy from the low-end. A major opportunity to move towards the mid to high end."

It is reported that at the meeting that day, the research was discussed for more than two hours.

The executive meeting of the State Council initially determined the mode of operation of international capacity cooperation driven by the government, enterprise-led, and financial support.

At the Standing Meeting on April 15, 2015, a detail revealed that the Prime Minister attached great importance to this issue: the meeting was scheduled to implement the key tasks of the 2015 economic system reform, and “promoting international capacity cooperation, this article must be written!” In addition to the original statement of the document, Li Keqiang specifically requested to add two items, one of which is “promoting international capacity cooperation”.

Li Keqiang explained the far-reaching significance of international capacity cooperation to the Chinese economy at several standing meetings.

“We often say that to upgrade from 'product output' to 'capital output', there is a very important link, which is 'industry output'. This is also consistent with the transformation path of developed countries.” He was at the beginning of this year. At a standing meeting, "In the early days of reform and opening up, some countries transferred a large number of production lines to China's coastal areas, which made the world-famous 'Made in China'. Now we are also going to the 'industrial output'."

The Prime Minister further stressed that it is an excellent time to push China's equipment and high-quality production capacity to "go global."

"Now, not only developing countries, including some middle-income countries in Central and Eastern Europe, there is much room for improvement in infrastructure, and even some developed countries' infrastructure is facing aging problems." Li Keqiang said, "China's price/performance ratio in this regard. It is very competitive, so it is necessary to speed up the promotion of Chinese equipment 'going out' and cooperate with countries in capacity production."

â–  International capacity cooperation not only helps importing countries develop the real economy, but also promotes its industrialization process.

Combing the international production capacity cooperation, Premier Li Keqiang and Kazakh Prime Minister Masimov together to enter the "high price breakfast" is undoubtedly one of the highlights.

At the end of December last year, when Li Keqiang visited Kazakhstan, the two prime ministers initially finalized a large order worth US$18 billion around the “China-Kazakhstan Capacity Cooperation Framework Agreement”.

Later, at the State Council executive meeting on January 28, 2015, Li Keqiang talked about the situation at the time.

“The lack of public goods in Kazakhstan is expected to increase investment and build infrastructure. However, they have no domestic production lines for cement and flat glass. So I propose that instead of buying finished products from us, we should go directly to the local factory. The Prime Minister said, "Hafang is very happy to hear it. Because China exports production lines, it not only helps them develop the real economy, but also promotes their industrialization process."

That is to say, at this meeting, the roadmap for action on international capacity cooperation began to become clear. For example, for major equipment such as railways and nuclear power, the meeting decided to “deeply explore” relevant international markets, explore investment and operation methods such as joint ventures and public-private partnerships, and provide engineering design consultation, construction, equipment supply, operation and maintenance, etc. for countries in need. Full service and open up third-party markets through international cooperation.

After the release of the "Guiding Opinions on Promoting International Capacity and Equipment Manufacturing Cooperation", the relevant person in charge of the National Development and Reform Commission once said: "After establishing the goal of the international capacity cooperation plan, cooperation with some countries has achieved positive results. This year only with Kazakhstan. In the month of cooperation, orders are expected to exceed $50 billion, equivalent to half of the total exports in 2014."

â– International capacity cooperation: China's economic and trade relations and cooperation with the world opened a new window

In June 2015, Premier Li Keqiang visited the EU. When attending the China-EU Business Summit with European Commission President Juncker, Li Keqiang said in his speech: "In 2014, China-Europe trade volume exceeded US$1.7 billion per day, and the annual trade volume exceeded US$600 billion. China and the EU are two major economies in the world. We should work together to promote international capacity cooperation."

When he talked about it, he smiled and turned and said to Rongke, who was also sitting on the podium. "The consideration of China's participation in the European investment plan is ambitious. Mr. Chairman must have a good appetite."

This is the first meeting between Li Keqiang and Juncker. The "International Capacity Cooperation" he promoted coincides with the "European Investment Plan" proposed by Juncker. In the end, China and the EU reached broad consensus and agreed to establish a China-EU joint investment fund and reach a comprehensive China-EU investment agreement as soon as possible.
The comment here said: Based on the new idea of ​​international capacity cooperation, China's economic and trade relations and cooperation with the world have opened a new window.

According to incomplete statistics, Premier Li Keqiang’s visits to Brazil, Colombia, Peru, Chile and Latin America during the four countries signed infrastructure projects, capacity and other actual projects and intentions agreement, totaling more than 100 billion US dollars.

After more than a month, the Prime Minister visited Europe, and the transcript of international capacity cooperation was further enriched: China and Belgium signed 12 bilateral cooperation documents with an amount of more than 18 billion euros; the Chinese and French governments jointly issued a joint third-party market cooperation. Statement and Sino-French nuclear energy cooperation joint statement.

This was evaluated by the media as "a pioneering joint statement." The international community has not had such an agreement before. In today's world, China, as the largest developing country, has entered the mid-industrial era, with industrial production lines and equipment manufacturing at the mid-end of the world. In this regard, developed countries such as France are at the high end, and most developing countries are still in the early stages of industrialization.

For the international capacity cooperation promoted by the Chinese premier, such a coordinate system means a huge opportunity. Combining China's mid-range equipment with France's nuclear "core" technology to jointly develop a third-party market, for China, means that stock assets are revitalized, and the industry chain is moving towards the mid-to-high end; for France, it means more More export and employment; for the third-party market, it means getting more cost-effective equipment and nuclear "core" technology to enhance its industrialization level.

1+1+1>3: This is the secret of international capacity cooperation. It also means that China will win more peace development partners in the global market and get a more lasting dividend.

As Li Keqiang said at a State Council executive meeting: "The Chinese economy has grown stronger in the process of globalization. Openness, like reform, is the only way for us to develop in the future."

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