China will work out cooperation mechanism, framework plan, and incipient program list of international capacity cooperation, and offer financing support to cooperative programs that adopt Chinese standards, technology and equipment, said Xu Shaoshi, head of the National Development and Reform Commission.
'International capacity cooperation' has become a hot topic both in the 2015 China International Fair for Investment and Trade and the 2015 Summer Davos Forum in northeast China's Dalian city. Chinese experts said that local companies are heading for a precious opportunity in 'going abroad' and they need to be more cautious in making decision and preventing risks.
Xu said at the 2015 Summer Davos Forum that China has deployed some significant programs and parks so far, and selected 15 countries in the Asia, Africa, Latin America, North America, and Europe as partners. The second batch of cooperative programs with Pakistan that value 30 billion U.S. dollars is to be kicked off, and some of the programs will start construction this year.
A number of provinces, including Jilin, Hebei, and Liaoing, have drafted detailed plans for international capacity cooperation. NDRC has also been devising the cooperation plan, which will be combined with the 'Belt and Road' initiatives, and specify the key areas, countries and development orientation for international capacity cooperation.
Xing Houyuan, vice president of the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, said international capacity cooperation is a part of China's industrial transformation and upgrade as well as a necessary choice for further development of international economy and China's economy.
Fang Wei, an official with the Ministry of Commerce, said international capacity cooperation is an important attempt made by China in adapting to the 'new normal' of China's economy as well as economic globalization. Railway transport, electric power, textile, automobile industries will be the primary choices for China to promote international capacity cooperation.
Yang Liqiang, a professor with the University of International Business and Economics, said improvement in infrastructure will increase the overall investment environment in countries under the 'Belt and Road' initiatives, industrial cooperation among those countries will boost direct overseas investment of small- and medium-sized enterprises, and the initiatives will also stimulate services investment.
The experts also remarked that Chinese companies 'going abroad' under the readjustment of division of labor across the world, new opportunities will be presented to the Chinese firms, spillover effects will be made to global investment structure and industrial chain.