Big multinationals seek windfall from Belt and Road

BEIJING, Dec 1 (APP):While China’s Belt and Road Initiative has created huge growth opportunities for Chinese companies, many Western multinationals are also actively angling for a piece of the trade initiative, with international corporations like Honeywell and General Electric tweaking their businesses to win more orders.
US conglomerate General Electric recently decided to further extend its partnership with Power Construction Corp of China, which provides engineering and construction services focusing on renewables, by exploring new wind power opportunities in Pakistan and abroad, China Daily reported Friday.
This is part of GE’s more than 10 Pakistan power projects with Chinese engineering, procurement and construction contractors in recent years. It is also planning to invest in electric power grids, new energy and oil and gas, in countries and regions involved in the Belt and Road Initiative with Chinese partners.
“China’s uniquely advantageous position on the global economic stage is incomparable. The country offers an enormous wealth of hard earned experience as well as technology that can be shared and transferred among developing countries,” said Rachel Duan, president and CEO of GE China.
In 2016, Chinese construction and engineering companies ordered $2.3 billion worth of equipment from GE for installation in the countries and regions involved in the Belt and Road Initiative. GE plans to bid for more orders including natural-gas turbines and other power equipment in the upcoming years, she said. “We are confident of winning these orders,” said Duan.
Honeywell International Inc, the US-based manufacturing and technology conglomerate, said it has been partnering with leading Chinese companies to explore infrastructure development and other opportunities in emerging markets, to support the country’s Belt and Road Initiative.
Executives at mining giants BHP Billiton and Rio Tinto also said that they are optimistic that the Belt and Road Initiative could revive China’s metal exports, which will in turn boost demand for iron ore.
According to Ren Hongbin, chairman of China National Machinery Industry Corp, also known as Sinomach, Chinese EPCs in engineering procurement construction are facing various challenges including international competition, geopolitical risks, financing and conflicts of culture.
Experts said the initiative could well be a windfall for the multinationals and many of them are gearing up for it.
Zhang Jianping, director of international economic cooperation at the National Development and Reform Commission, said the Belt and Road is a historical precedent and enables companies from home and abroad to jointly explore overseas markets, creating opportunities for domestic companies and big multinationals alike.
According to the Mercator Institute for China Studies, the economies involved with the initiative account for about 30 percent of the global economy, while figures from China Development Bank show that some $900 billion worth of projects are now either underway or in detailed planning stage.
Many Western firms are interested in being a part of China’s Belt and Road Initiative, offering either technological edge or knowledge of local conditions, said Zhang