China's equipment "going out" to promote a new pattern

Under the background of economic restructuring and transformation, China's equipment manufacturing represented by high-speed railways and nuclear power is becoming an important engine for China’s economic growth and has a major impact on the pattern of global economic and trade investment.

“In the coming year, China will encourage enterprises to participate in overseas infrastructure construction and capacity cooperation, and promote the development of railways, electric power, communications, engineering machinery and other equipment to the world. This is China’s new orientation to its expertise in the global economy and also to international economic cooperation. The new trend," an article published by the Russian News Agency recently commented.

China builds to the world

China’s equipment “going out” is closely related to the capabilities of China’s infrastructure construction. This capability has already caught the attention of the world.

“Which is the longest bridge in the world? It is not the Golden Gate Bridge in San Francisco, it is not the King Fahd Bridge in Saudi Arabia, and it is not even a bridge across the sky in Scandinavia. So far, The longest bridge in the world is the Beijing-Shanghai high-speed railway between Danyang and Kunshan, "said the British "Daily Telegraph" publication.

“Among the longest 12 bridges in the world, at least 9 are in China, and they were built in the past 10 years,” the article said.

From "made in China" to "built in China", it reflects the change in China's attitude to participate in the international division of labor. Behind the “construction” is the export of a large number of capital-intensive products of equipment.

Some international observers have concluded that: China exports its goods from light to heavy, from light textiles such as clothing and footwear to heavy equipment such as railways and nuclear power; the technical content of output goods is “from low to high”, from low added value. The daily necessities go to high value-added electronic products and large-scale mechanical equipment; they participate in the international division of labor “from shallow to deep”, and export from simple merchandise exports to the “full industrial chain” of products, technologies, and services.

In 2014, China’s equipment manufacturing industry exported RMB 2.1 trillion, covering railways, mobile communications, construction machinery, nuclear power equipment and many other industries. Among them, railway equipment exports have covered more than 80 countries and regions in six continents. ASEAN, Argentina, Australia and the United States also include emerging markets and advanced economies.

Equipment industry upgrade

According to RIA Novosti, "(China) exports of consumer goods will not disappear, but it is already a glory of the past." Equipment manufacturing represented by high-speed rail and nuclear power will help build the future of China's economy.

Li Keqiang, Premier of the State Council, pointed out recently that accelerating the “going global” of Chinese equipment and promoting international capacity cooperation is an important measure for realizing China’s economic upgrading and efficiency upgrading, which is conducive to nurturing new advantages in opening up to the outside world and promoting the formation of a new type of open economy. The pattern has deeply integrated the Chinese economy and the world economy at a higher level.

Specifically, equipment "going out" will force companies to improve their competitiveness. By supporting the "going out" of Chinese equipment, allowing Chinese companies to compete in the international market with advanced technology and strong multinational companies on the same platform will force companies to continuously improve their technology, quality and service levels, and improve their overall quality and core competitiveness. force.

Equipment "going out" will help optimize and upgrade domestic industries. Taking high-speed railway as an example, the high-speed rail industry involves high-tech industries such as metallurgy, machinery, construction, rubber, electric power, information, computers and precision instruments. Going out of the high-speed railway will certainly drive the development of a number of high-tech industries and promote the transformation and upgrading of China's industrial structure.

There is an urgent need to embark on "going global" or promote export upgrades. At present, China’s exports still have competitive advantages, but with the changes in the conditions of labor resources and other factors, the traditional industries’ competitive advantage is weakening. At the same time, equipment manufacturing is gradually becoming an important growth point for China's exports. In 2014, exports accounted for 17% of all product export revenues.

China's supply benefits the world

At present, China’s equipment has comprehensive comparative advantages in terms of price, quality, technology, and ancillary services, and can meet the needs of many countries for infrastructure and industrialization. Huang Bin, director of the China Research Office of the Thai think tank Kai Tai Research Center, citing examples, said that China’s railway is cost-effective, and that the absorption of railway technology by the public has the advantage of being a latecomer and the equipment is very complete. It has built and operated high-speed railways under different geological conditions and climate conditions. experience of.

Some observers pointed out that Chinese railway equipment has both competitive opportunities in both developed and developing countries. The former’s current financial situation is tight, and it prefers to select “China Construction” with high quality and low price when updating old infrastructure facilities. The latter’s infrastructure is weak, and railways are urgently needed as development ties, but with limited financial resources, priority will be given to the introduction of cost-effective “ Chinese goods."

Premier Li Keqiang pointed out that many countries have a great demand for infrastructure construction and industrialization, supporting Chinese equipment “going out” and promoting international capacity cooperation, facilitating the development of related countries, and cooperating with developed countries in China to develop third-party markets. Create more opportunities.

Some analysts believe that from an industrial perspective, Chinese enterprises can help the host country to form the comparative advantages of industrial clusters by improving the industrial system through its “going global” strategy, which in turn will drive local economic development and industrial upgrading, and help relevant countries to further attract international investment. , thus forming a virtuous cycle.

From the financial perspective, China’s capital needs to expand internationally, and developing countries have limited financial resources. In addition, China's external capacity cooperation can also be combined with existing local resources, talent reserves, and government development strategies. It is a mutually beneficial and win-win feasible model.

Kenyan President Uhuru Kenyatta visited the Mombasa-Nairobi railway track-laying test section undertaken by China Road and Bridge Co., Ltd. this year and said that the Mongolian railway will increase the annual growth rate of Kenya’s economy from 5.8% to 8%, and Create tens of thousands of jobs and lead Kenya’s economic transformation.

Today, on a global scale, the upsurge of a new round of infrastructure construction and international capacity cooperation is on the rise, and it has gradually become an important measure for many countries to promote economic development, reduce poverty, and improve people's livelihood. This aspect provides an important opportunity for Chinese equipment to “go global”; on the other hand, it also provides a stage for deep integration and mutual benefit between the Chinese economy and the world economy at a higher level.