Win-win Cooperation on Establishing Industrial Parks Overseas

Oriental Outlook Issue No. 36， 2017

Chinese enterprises overseas investment in the building of economic and trade cooperation zones is determined by factors such as the local market， and the host countrys investment environment and preferential policies. All businesses are mutually beneficial. Attracting more companies to build factories in host countries can increase their employment and tax income， earn foreign exchange through exports， enable technology transfer， and promote the economies mutual development.

Early in 2006， the Ministry of Commerce of China （MOC） announced the plan to establish 50 national-level overseas economic and trade cooperation zones to encourage the construction of industrial parks in foreign countries. Later， in 2013， the Belt and Road Initiative brought new opportunities. Owing to the low production costs required to develop an export-oriented economy and labor-intensive manufacturing industry， most nations along the routes have taken accelerating industrialization as a national strategy. Thats why these countries express a strong desire to jointly develop industrial parks， undertake the transfer of Chinas production capacity， and integrate into the global value chain.

Take Belarus as an example. Statistics show that in 2015， the countrys GDP contracted by 3.9 percent. Suffering a decline in domestic production capacity and a lack of new drive for economic growth， Belarus had both the need and desire to attract foreign investment to update its industry， making the China-Belarus Industrial Park a key project.

Data from the MOC reveal that Chinese enterprises have undertaken 77 such cooperation zones under construction in 36 countries， among which 56 were built in 20 countries along the Belt and Road routes， with an accumulated investment of US $18.55 billion. The 1，082 companies in these industrial parks have a total output value of US $50.69 billion， turn over taxes to the host countries of up to US$1.07 billion， and provide 177，000 jobs to locals， playing an active role in speeding up the national industrialization process and promoting bilateral economic and trade relations.

Many companies converging in one industrial park can exert the cluster effect， so encouraging host countries to offer more preferential policies and facilities. In some politically unstable countries， local governments have even provided security services.endprint

It can be predicted that， against the backdrop of international capacity cooperation， Chinese industrial parks around the globe will impart Chinas wisdom in terms of capacity integration and boost common development.

New PPP Rules

China Financial Weekly Issue No.20， 2017

A public-private partnership， or PPP， is a cooperative arrangement between public and private sectors. It now faces a crucial juncture， as the Regulations on Public-Private Partnerships （Exposure Draft） on using social capital for infrastructure and public service projects promulgated by the Legislative Affairs Office of the State Council， the National Development and Reform Commission， and the Ministry of Finance（MOF） has finished its opinion collection and is entering the legislative process. The new document will be the first national administrative regulation on PPP to solve realistic problems and standardize the PPP market.

According to MOF data， as of July this year， the number of programs registered in the national PPP comprehensive information platform reached 13，599， with an accumulated investment of RMB 16.54 trillion.

Highlighting a sharp contrast with the rapidly expanding PPP market， there has been a lack of corresponding national level legislation. New rules for PPP projects are sure to bring about both opportunities and challenges to the market and to governance wisdom.

Shanghai： Building a Smart City

Xinmin Weekly Issue No. 39， 2017

At the 29th meeting of the International Business Leaders Advisory Council （IBLAC） for the Mayor of Shanghai in mid-September， Shanghai Mayor Ying Yong said that Shanghai will build a world advanced information and communication network， maintain the national leading position in submarine communication cables capacity， achieve full coverage of high-speed wireless data communication network， and strive to become a highly connected and fully integrated new smart city.

Since 2009， Shanghai has started to build itself into a smart city， and achieved some promising results in the government management， urban transport， and medical services sectors. Later， Shanghai proposed in its 12th Five-Year Plan to build itself into a future-oriented smart city， and form a relatively complete， top level design. It is noteworthy that Shanghai has formed a number of intelligent， international standard application platforms， so reaching the goal is possible.

For the general public， the prevailing opinion in Shanghai is that a smart phone can solve many matters like transportation， booking， shopping， finance and medical treatment. It can be said that Shanghais living convenience is better than most of the worlds cosmopolises.endprint

Xiongan Opens for Business

Insight China

Issue No. 27， 2017

On April 1， the CPC Central Committee and the State Council decided to establish Xiongan New Area in Hebei Province. This grand strategy makes Xiongan another new district of national significance equal to the Shenzhen Special Economic Zone and Shanghai Pudong New Area.

Taxi drivers are the first to benefit from the “national policy.” Since April of this year， the area where they work and live has become a hotspot， attracting nationwide attention and hype. Most of the people visiting Xiongan are aggressive real estate investors and young people full of dreams. There are also large enterprises eager to seize the first opportunities.

Xiongan New Area， at this moment， is their land of dreams.

On the morning of July 6， a bullet train set out from Beijing South Railway Station. After about 80 minutes， the train arrived at Baiyangdian Station. This is the first high-speed train from the capital to Xiongan New Area. At this moment， to realize the areas potential， carrying out scientific planning in accordance with the law of urban development and management is undoubtedly the key to the development of Xiongan.

The Role of Media in Major Country Diplomacy

China Economic Weekly Issue No. 38， 2017

Media plays an irreplaceable role in disseminating information， enhancing mutual trust， and building consensus. The Media Cooperation Forum on the Belt and Road is offering a platform for media and journalists to hold dialogues and exchanges and make plans for cooperation. The participants are expected to use this platform well and make a contribution to boosting communications between countries and peoples and gain more mutual trust and mutual understanding.

The forum this year was held in Dunhuang， Gansu Province on September 19. Guests from various countries focused on regional interaction， media integration and cultural blends， and discussed issues related to the Belt and Road Initiative. In May， China successfully held the Belt and Road Forum for International Cooperation， signifying that the initiative has entered the new stage from concept to action， and from planning to implementation. A great story needs a capable narrator. The Media Cooperation Forum on the Belt and Road is an important platform to enlarge the effect of the Belt and Road Forum for International Cooperation and deepen cooperation under the Belt and Road Initiative.endprint