NEW FORCE:Chinese Private Enterprise in the “Belt and Road”

【Introduction】

This report aims to illustrate the relationship between building the “Belt and Road” and private companies conducting investment and working with others abroad, by interpreting policies and measures related to that building effort. From the perspective of various countries and industries it analyzes the opportunities and challenges building the “Belt and Road” will deliver in investment and other opportunities for private companies overseas. It also looks at how private companies can play a role in the “Belt and Road” Initiative. The report also analyzes investment and industry conditions in countries related to the “Belt and Road”. In analyzing individual cases of private companies investing in “Belt and Road” countries it will proffer advice and suggestions to businesses at an operational level.

【Table of Contents】

Summary 

Part One 

Time is Calling: Connection between “Belt and Road” Construction and Outward Investment and Cooperation of Private Enterprises

To have a correct understanding of relationship between investment and cooperation overseas by private enterprises and “Belt and Road” construction

“Belt and Road” construction is a practical need for China’s overseas investment getting bigger and stronger

Private enterprises making outward investment should be guided by “Belt and Road” Initiative

The unique role played by private enterprises in “Belt and Road” construction

Private enterprises that go global are important carriers for “Belt and Road” spirit

Private enterprises that go global help the market to play its fundamental role in “Belt and Road” economic and trade cooperation

Enterprises going global are good for upgrading China’s soft power and promoting people-to-people connectivity with other countries

Part Two

Camel Bells Are Ringing: Opportunities Brought about by “Belt and Road” Construction for Private Enterprises in Outward Investment Cooperation

“Belt and Road” construction has created an important opportunity for development of private enterprises

To provide strong guiding and driving for economic and trade cooperation of private enterprises in related countries

        To create a sound external environment for private enterprises to have investment cooperation in related countries

To build better institutional arrangement for private enterprises to have economic and trade cooperation in related countries

The “Belt and Road” outward investment environment faced by private enterprises

The “Belt and Road” has constructed a big platform running through Asia, Europe and Africa

Political and economic situations of countries along the “Belt and Road”

Key countries and industries recommended for investment cooperation by private enterprises

        Recommended key countries of investment

Key industries of investment

Part Three 

The Silk Road Being Distant and Long: Challenges Faced by Private Enterprises in Investment and Cooperation with Countries along the “Belt and Road”

External challenges faced by private enterprises in investment and cooperation in countries along the “Belt and Road”

Complicated political situation and frequently changing political scenes have impact on investment by private enterprises

        Traditional and untraditional factors of insecurity have challenged the public in participating the “Belt and Road”

Absence of laws and regulations and interests of private enterprises cannot be safeguarded

Many countries have weak economic base and relatively big macroeconomic risks

Cultural difference is big and it is difficult for private enterprises to understand business rules

It is necessary for private enterprises to tackle multiple internal risks when going global

Private enterprises are weak in their abilities of overseas investment

Private enterprises have limited capabilities in capital operation and management

Private enterprises are not competitive enough and are weak in innovation and short of talents

        Supports to private enterprises from different parties need to be strengthened

Part Four

Trade Loads Have Arrived in Anxi: Suggestions to Private Enterprises Participating “Belt and Road”

To make anti-risk strategies at implementation level for enterprises going global

To make good feasibility study and due diligence investigation, and to understand investment environment comprehensively

        To attach importance to financial management, reduce tax-related and currency exchange risks

To prepare against legal risks and to reduce enterprise losses

To build images, improve communication, undertake social responsibilities and maintain good public relations

Raise competitiveness and create a distinct overseas strategy

Join forces with each other and actively construct an international value chain

Promote private enterprises investment and cooperation along the “Belt and Road” Initiative through overall coordination and joint force

        The government should enhance overall coordination and the institution mechanism construction as well as promote administration ability and service level

        Promote the aligning of the “Belt and Road” Initiative with the development strategies of other countries, creating good environment for the enterprises

Build diversified financing systems and support private enterprises to invest and cooperate in related countries

Part Five

Business Travelers on the Road: Case Study

Country Garden: Long-term overseas development needs mutual benefit and win-win principles

IRU: Growth of international road transport in China consistent with China’s industry upgrade demand

South Africa Standard Bank: Chinese private enterprises need to clarify diversity when entering African markets

MCC International: Complementarity between state-owned and private enterprises

Epilogue

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