Private businesses: Reaching out via Belt and Road, Localization for win-win
28 Apr 2017



Since the “Belt and Road” Initiative of China, “intelligent manufacturing in China”, “Chinese construction” and “Chinese service” have quickened the pace of reaching out and are welcome by countries along the route. In the course, Chinese private businesses have assumed an indispensable role. Recently, Mr. WANG Qinmin, Vice-Chairman of National Committee of the Chinese People's Political Consultative Conference and Chairman of All Chinese Federation of Industry and Commerce, said that the private businesses have already become a vital force in the construction of the Belt and Road. And now we have seen excellent private businesses, who have global remit, international strategy and capital operation, springing up.


Now, how can the Chinese private enterprises take part in the Belt and Road construction? What problems are they facing? How to better leverage on the opportunities brought by the Initiative and achieve win-win?


Quicken the pace of “Reaching out” for global planning


Mr. WEI Jianguo, Deputy Director of China Center for International Economic Exchanges, said that the Belt and Road Initiative brings with it the unprecedented opportunities to Chinese private businesses, who should take firm grab of the opportunities, carry out global planning, and achieve the goal of cooperation and win-win via connectivities.


Mr. LIU Yingqiu, Director of Center for Private Economy Studies, Chinese Academy of Social Science, considered that the private businesses should insist the principles of mutual benefit and win-win in the Belt and Road construction. And by making long-term arrangements in technologies, standards and etc., and make rational and differentiated choices, we can bring new dynamics into world economy.


Establishing industrial parks for grouping up


“Reaching out” is an important means for private businesses to join the Belt and Road construction. However, many professionals consider that during “reaching out”, the private businesses will inevitably be at risk in politics and finance, as well as trade barriers and culture shocks. And they have their own problems, for instance, unclear overseas investment strategy, relatively poor management system, week risk control and etc.


Xiao Qijing, CEO of Huawei Group, encourages private businesses to group up rather than fight solo in foreign markets. Because, private businesses are limited in resources if they fight alone. However, if they stick together, their brands draw more attention when entering new markets. "From previous experience, businesses in an industrial park share resources like capital, information, and talents, and have larger chances of survival."


Mr. HOU Yunchun, Chairman of China Enterprise Evaluation Association (CEEA), believes, on one hand, private businesses need to learn and follow the favorable policies Chinese government has issued in support of the Belt and Road. And on the other, they need to be informed with the situations in the Silk Road countries. Such information protects them from risky investment, and offer them legal shield against loss and violation of rights. And the Belt and Road initiative is a great chance for the private enterprises and hope that they can seize the chance and walk towards success.


Localization for mutual benefit and win-win


“The key for Chinese businesses to take a firm first step in global markets is to lay a solid foundation and stronghold on foreign soil. And such foundation cannot be without localized operation.” said Mr. NAN Cunhui, Chairman of Zhengtai Group, “Inclusiveness, Respect and Localization are the three key words to take hold of global market. And in cooperation with countries along the Belt and Road, Chinese enterprises should respect their folkways and customs, promote and develop public goods, build responsible corporate image, and spare no effort in benefiting local people for the connectivity of peoples, mutual benefit and win-win.


Mr. LU Jianzhong, Chairman of Silk Road Chamber of International Commerce mentioned that the Belt and Road Initiative is a “golden key” as it aims to replace recession with cooperation, barriers with connectivity, and conflicts with stability, and it will drive the recovery and prosperity of the world economy. Private businesses will spare no effort in benefiting peoples along the route during the construction of the Belt and Road.