GD can cooperate with maritime silk road countries on infrastructure projects
About half (43.81%) of the 117th Canton Fair buyers are from “One Belt One Road” (OBOR) countries. Moreover, the trade volume between Guangdong and OBOR key countries in the first quarter of 2015 went up 6.5 % to 27.8 billion USD, covering 12.9% of GD’S foreign trade volume. It shows a relatively good situation of trade between GD and Belt and Road countries.
The trade between Guangdong and OBOR countries will become more important for Guangdong’s foreign trade. Since Guangdong Free Trade Zone is to become a crucial hub of the 21st Maritime Silk Road, it encourages enterprises to play as active participants.
Foreign trade companies in Guangdong ought to expand their market to OBOR countries. For instance, they should tune themselves to some newly-emerging market from ASEAN, Eastern Europe, Middle East, South America and South Asia, said by Mao Yanhua, the deputy director of Sun Yat-sen University Institute for Free Trade Zone Research.
Guangdong has rich experience in infrastructure construction with technological strength in building highway, harbor, energy plants and power grid. Thus, Lin suggested Guangdong can cooperate with countries along the maritime silk road on following aspects in future.
Firstly, to expand overseas investment. Guangdong enterprises are encouraged to open subsidiaries in ASEAN, Middle East and African countries. Through the investment cooperation, they can conduct infrastructure projects and exploit new energy together.
Secondly, service trade cooperation. Guangdong can provide after-sale service such as maintenance service for the countries or regions that purchased infrastructure from Guangdong.
Lin’s suggestion is consistent with a Guideline to boost China’s foreign trade released by the State Council on May 12. It is said that to amid the infrastructure construction of OBOR countries, the exports of complete sets of major equipment, technologies and services as well as mechanical and electrical products would be encouraged.