Can electric power industry catch up with international capacity cooperation?

The National Development and Reform Commission held a press conference to interpret the Guiding Opinions on Promoting International Capacity and Equipment Manufacturing Cooperation issued by the State Council (hereinafter referred to as “Opinions”).

"The promotion of international production capacity and equipment manufacturing cooperation is the output of industries and the export of capabilities. It is the export of our advantageous industries to different countries, and at the same time helping these countries to establish a more complete industrial system and enhance their manufacturing capabilities. The core lies in such cooperation. Promote product trade and product output to an industrial output and capacity output."

Power companies go out to adhere to market orientation, follow commercial principles and international practices

At present, the global industrial structure has been speeding up and the pace of infrastructure construction has been accelerating. Developing countries have vigorously promoted the process of industrialization and provided important opportunities for China to accelerate international production capacity and equipment manufacturing cooperation. After more than 30 years of reform and opening up, China's manufacturing industry has achieved considerable advantages. In the electric power industry, our technology, equipment, production capacity and services are becoming more and more mature. The level of production of thermal power, hydropower, power transmission and transformation equipment and wind power and photovoltaic power generation equipment and technical standards are all at the international advanced level.

In 2014, China’s electric power installed capacity reached 1.36 billion kilowatts, ranking first in the world. After technology introduction, absorption and innovation, China has already possessed large-scale production capacity and strong international competitive advantages in terms of power equipment manufacturing, engineering construction, and operation management.

At present, the total scale of China's equipment manufacturing is about one-third of the world's total equipment manufacturing, of which China's power generation equipment has accounted for 60% of the world's total.

In addition, data shows that since 2010, the total annual export volume of power generation (including thermal power and hydropower) equipment has been maintained at more than 15 million kilowatts. At present, China's nuclear power equipment technology and manufacturing capabilities already have bulk export conditions.

The "Opinions" proposed 12 industries as the key areas for promoting international production capacity and equipment manufacturing cooperation. The power industry is among them.

The "Opinions" clearly stipulated that we must vigorously develop and implement overseas power projects to enhance the competitiveness of the international market. We will increase the “going out” of electricity, actively explore the relevant national thermal power and hydropower markets, encourage participation in major power project cooperation in various ways, and expand the scale of domestic thermal power, hydropower equipment and technology exports. Actively conduct exchanges and consultations with the relevant countries in the field of nuclear power, promote cooperation in key projects, and promote nuclear power equipment and technology exports. Actively participate in the related national wind power, solar photovoltaic project investment and construction, and promote wind power, photovoltaic power generation international production capacity and equipment manufacturing cooperation. Actively carry out investment, construction and operation of overseas power grid projects and drive the export of power transmission and transformation equipment.

The "Opinions" pointed out that to promote international production capacity and equipment manufacturing cooperation, developing countries with a high degree of compatibility with China's equipment and production capacity, strong aspirations for cooperation, good cooperation conditions, and good foundations should be regarded as the key countries, and they should actively explore the markets of developed countries in order to bring points together. Gradually expand.

“Promoting international production capacity and equipment manufacturing cooperation is essentially a market behavior. We must adhere to the principle of being the mainstay of the enterprise and the market, following commercial principles and international practices.” Gu Dawei pointed out that “companies must carefully analyze their own development needs and the needs of the host country. In accordance with commercial principles and international conventions to promote international capacity cooperation, we must make decisions on our own, assume our own profits and losses, bear our own risks, and encourage companies to adopt various new business operation models to promote international capacity cooperation."

Gu Dawei pointed out at the same time that enterprises should effectively regulate overseas investment and business activities, abide by the laws and regulations of the host country, respect local culture, religion, and customs, perform necessary social responsibilities, persist in honest business operations, resist commercial bribery, and protect the local ecological environment. At the same time, we must guard against political, economic, and security risks.

The government has promoted an unprecedented degree of financial support for improving access to the sea

The Opinions emphasize the need to strengthen overall guidance and coordination, improve the foreign cooperation mechanism, reform the foreign cooperation management system, do a good job in diplomatic service, establish a comprehensive information service platform, and actively play the role of local governments. We will improve fiscal and taxation support policies, increase financial support, play an active role in the internationalization of the renminbi, expand sources of financing funds, strengthen and improve export credit insurance, strengthen service guarantees and risk prevention and control, and provide support and services for enterprises to “go global”.

Gu Dawei said that in order to promote international production capacity and equipment manufacturing cooperation, the government will focus on improving the "going out" convenience level of enterprises, and through the simple administration and decentralization, it will overcome the problems of the "meeting out" mechanism and mechanism for enterprises, and further deepen the management system for overseas investment. reform. At present, the examination and approval of overseas investment by enterprises has been basically canceled and changed to record.

"In terms of financial support, the "Opinions" make it clear that the company's offshore assets can be mortgaged to obtain domestic loans, which is a major breakthrough." Gu Dawei said.

In terms of increasing financial support and expanding the sources of financing, measures taken include: Providing various types of financial support, that is, systematically supporting enterprises to “go global” in terms of policy-based finance, development finance, commercial finance, and preferential loans. ";

Chinese-funded financial institutions will speed up their "going out" and deploy overseas outlets to provide convenient financial services to Chinese enterprises "going out";

Chinese enterprises can independently decide to issue RMB bonds and foreign currency bonds overseas, and they can also finance overseas financial institutions and commercial banks.

It will speed up the establishment of a cross-border RMB payment system and improve the RMB global clearing system. Through various funds, it will support “going global”, including the Silk Road Fund, China-Africa Fund, ASEAN Fund, China-Latin Fund, China-Arab Fund, etc., through equity investment. Way to support.

"In addition, in terms of strengthening and improving export credit insurance, Chinese enterprises and equipment 'going out' will be able to fulfill their guarantees on production capacity cooperation, and through export insurance, Chinese enterprises will be 'outgoing' to escort, and efforts will be further increased. "Gu Dawei said.

Advantage

Under the background of accelerating the adjustment of the global industrial structure and China’s economic development into the new normal, the promotion of international production capacity and equipment manufacturing cooperation will help China’s advantageous production capacity for external cooperation and enhance the company’s core competitiveness; it will help promote economic restructuring and industrial transformation and upgrading. The promotion of high-speed economic growth in China and the move towards the high-end level is conducive to the promotion of a new round of high-level opening to the outside world and enhancement of international competitive advantages. It will help deepen the mutually beneficial cooperation between China and the countries concerned and promote local economic and social development.

"Promoting international production capacity and equipment manufacturing cooperation, and further tempering the domestic manufacturing industry by participating in international market competition, will greatly enhance the company's core competitiveness. This is a crucial step for China's economic development in the future," said Gu Dawei.