Connectivity Spearheads Development: Jointly Write a New Chapter in the Global Cooperation on Production Capacity Between China and Argentina

□ Written by Fan Xinzhu

Connectivity Spearheads Development: Jointly Write a New Chapter in the Global Cooperation on Production Capacity Between China and Argentina

□ Written by Fan Xinzhu

Introduction of Cordoba

Argentina, a fast growing developing country in South America, not only has abundant natural resources and diversified industrial system, the whole country also exudes ebullient cultural spirit, where Tango and football are most prestigious. The whole country regards Tango as a “lifetime dance”. Tango attracts fans all over the world with its charming music, graceful and unrestrained dance, and gradually becoming a fashion in high society. Tango’s graceful and enthusiastic characteristics truly show the youthful and romantic of the country. In addition, Argentina's national football team is one of the world's most successful teams, who has dominated the World Cup title twice, and has achieved many good rankings in all kinds of competitions. Many famous football players, like Maradona, Gabriel Batistuta, Lionel Messi and other world-class players are from Argentina.

Cordoba province is located in eastern Cordoba Mountains. The capital city Cordoba was founded in 1573. Cordoba is becoming the second largest city in Argentina with classical and modern spirit. Cordoba is a railway and highway transportation hub in the central region of Argentina, also a famous tourist destination. The ancient Europe buildings with different styles in the city, magnificent scenery on the outskirts and the pleasant weather attract a large number of foreign tourists every year. Cordoba province’s agriculture and industry are developed fairly well; soybeans and corn yield ranks first in Argentina; metal and auto parts production ranks second in Argentina. Cordoba's many advantages compress the distance with Chongqing. The similarities and complementarities in industry, agriculture, tourism and education between Chongqing and Cordoba have laid a good foundation for establishing sister city relations. In May 2010, Argentina's Cordoba province and Chongqing signed the agreement to establish offi cial sister city relations, and Cordoba became the first sister city of Chongqing in South American countries.

Source from Quanjing

Foreign Affairs Knowledge

Global Cooperation on Production Capacity

With the development of China’s economy, traditional developing model cannot adapt to the need of China’s “new normal” for the economy any more. Global cooperation on production capacity has becoming one important measure of the upgrading and transformation of manufacturing and promoting economic structure strategic adjustment. In May, 2015, Leading Document on Promoting Global Production Capacity and Equipment Manufacturing Cooperation was brought out by the State Council of the People’s Republic of China. In the document, the significant meaning that global cooperation on production capacity had on China’s current economy and industrial development was expounded, and the main objectives were determined. The principles that companyleading and government promoting will be adhered to. The support policies will be improved, and good environment will be created later by the government. The related authorities and companies will be provided with good opportunities to achieve “going out”. The companies will make their own decisions, take according risks whether making profi ts or not, on the basis of international regulations and commercial principles.

In May, 2015, the “3×3” model of China-Latin America production capacity cooperation was firstly brought out by Premier Li Keqiang on Cupula Empresarial Brasil-China, which was closely related to the Document. The aim was to promote the transformation and upgrading of China-Latin America cooperation and to forge a new situation of China-Latin America cooperation. China and Latin America would build logistics, electricity and information 3 passageways together to make the companies, the society and the government having healthy interactions and extending funds, credits and insurances 3 fi nancing channels.

Equipment Manufacturing Going Out

“Equipment manufacturing going out” also known as “International equipment manufacturing cooperation” is an important carrier of “going out” strategy. At the same time, equipment manufacturing going out is also a diplomatic mean,through overseas infrastructure construction, equipment export, cooperation on production capacity and other activities to make contribution to socio-economic growth of China.

In May 2015, the State Council of China issued the Leading Document on Promoting Global Production Capacity and Equipment Manufacturing Cooperation, for the first time, to propose the equipment manufacturing going out concept in the form of national documents. Equipment manufacturing going out is mainly by means of trade, engineering contracting, investment and other forms, covering many areas including iron and steel, non-ferrous metals, building materials, railways, electricity, chemical engineering, textile, automotive, communications, engineering machinery, aerospace, marine and offshore engineering and other major industries. In the basis of our country’s capital and technology advantages, equipment manufacturing going out will actively carry out “engineering contracting + fi nancing”, ”engineering contracting + financing + operation” and other cooperation modes. The conditional projects also can use BOT and PPP modes to develop the international market and conduct equipment manufacturing cooperation.

Cases

Chongqing Delegation Visits Argentina

In August 2011, Fan Zhaobing, the director of United Front Work Department of Chongqing Municipality, with the approval of the Central Committee, accepted Cordoba provincial government’s invitation visited Cordoba in Argentina. His visit not only had a great infl uence to promote Chongqing private enterprises “going out”, also further expanded the market in South America.

The visit had deepened the friendly cooperation between Argentina and Chongqing. Fan Zhaobing introduced relevant information about Chongqing economic and social development, highlighted the transformation of Chongqing economic development mode, the construction of inland open economy and the foreign investment policy planning, etc. to the political, business and media representatives of Argentina. In the visit, Fan Zhaobing effectively encouraged Chongqing private enterprises to go overseas, at the same time, enhanced the image and infl uence of Chongqing. Many Chongqing enterprises on board had some insight into Argentina’s investment environment and investment policies. Both sides of enterprises found a range of investment opportunities and reached a batch of cooperation agreements in the field of mining, agriculture, automobile and motorcycle, food processing, urban construction, catering and tourism, etc. Argentina relative departments showed great enthusiasm to Chongqing delegation. Senor Hector Oscar Campana, the speaker and vice governor of Cordoba province said, he would lead a business delegation to attend the “Chongqing Garden Expo”, to seek economic and trade cooperation opportunities and attract investment, meanwhile, to broaden the market in central-western China.

Chinese Enterprise to Build Subway for Argentina

In 2011, China Railway International Group cooperated with Argentina Rossio Group to construct underground for Cordoba (the second largest city of Argentina). China Railway International Group provided the underground operation equipment. And Committee of Cordoba had approved the land and the necessary equipment for the underground construction. Argentina Rossio Group is a large civil engineering group, which is responsible for a number of civil engineering construction and operation in Argentina, including the operation of underground lines in Buenos Aires, the capital of Argentina.

Cordoba is the capital city of Cordoba province in Argentina. It is located in central Argentina, which is a transportation hub of Argentina. In order to solve the increasingly serious urban traffi c problems, the federal government of Argentina planned to build four underground lines in the city, which will go across the commercial center, new urban area and university town. The underground is about 18.57km, with total 30 stations. After the completion of the underground, the passenger volume is expected to reach approximately 200,000 people per day. The total investment of the underground project is about $1.8 billion. China Railway International Group will provide 85% of the whole construction fund, and Argentine government will bear remaining 15% of the fund. If everything goes well, the underground project needs three to fi ve years to complete, and the lines will be put into operation in 2016.

● By post-graduate student of School of International Relations, Sichuan International Studies University