The China-proposed production capacity cooperation has turned from largely a concept at the beginning into actions now taken by various parties, which has fostered the world economy. Countries around the world have been making efforts to steer their economy out of sluggishness after the global financial crisis, but where they shall head for remains a hard problem, to which production capacity cooperation can now serve as one of the answers.
Ning Jizhe, deputy head of China's top economic planner - National Development and Reform Commission (NDRC) said on a sub-forum of the 2016 Boao Forum for Asia (BFA) Thursday that combining advanced technologies of developed countries with China's mostly mid-end production capacity and construction and development demand of developing countries would not only benefit these countries themselves, but also the world economy. In the past years, a batch of agreements on key projects have been inked between China and surrounding countries and some other countries, demonstrating vividly demand for production capacity cooperation in the areas.
In the next step, China needed to match supply and demand with more related countries, reckoned Ning. So far, China has concluded pacts of this kind with dozens of countries but negotiation with countries one after another is needed in order to materialize the cooperation , according to Ning. In the future, there believed some prioritized fields for production capacity cooperation.
Take Pakistan for example, infrastructure is important for China linking with the country as for many similar developing countries, infrastructure remains still a bottleneck for further development. Under such circumstances, infrastructure-linked industries such as building materials, transportation and power are evidently areas with high potential for production capacity cooperation between China and Pakistan.
Meanwhile, textile, chemical and tourism sectors are also promising fields given the differentiated industrial structure in China and Pakistan. Ahsan IQBAL, Planning, Reforms, and Development Minister of Pakistan, mentioned on the sub-forum that exporting high-quality marble was a potentially advantageous area and introducing related technologies from China could help improve marble quality to better export.
What's more important, it was not only machines and equipment that would give Pakistan competitiveness and knowledge, technology and talent were also important thus technology transfer was also an area of focus for cooperation between China and Pakistan, said the official. For China's overcapacity-plagued steel and cement industries, markets for these industries in Kazakhstan have been saturated and accidentally, "I found pipe equipment may be a lucrative business where north China's Hebei Province boasts advantages and three pacts on helping local pipe making equipment makers 'go out' were concluded," said Zhang Jiehui, vice governor of Hebei Province.
China's production capacity in engineering construction in particular for railway, highway and power stations are competitive in the world currently. In the future, production capacity cooperation in this regard as well as in overseas resources exploration were likely to continue as in many developing countries, infrastructure remains still a bottleneck for their further development, expected Lin Yifu, a former World Bank chief economist on the sub-forum.
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