“Belt and Road” proposed construction valuereached scale of trillions, local governments’ act quickly, the list of majorproject has been circulating internally.
Long awaited "Belt and Road" thetop-level design has finally been published.
March 28, the National Development andReform Commission, Ministry of Foreign Affairs, the Ministry of Commercejointly issued the "push to build a 21st century Silk Road economic zoneand maritime Silk Road vision and action," defined the development of fiveinternational Chinese foreign economic channels, delineated along the 18provinces, and Xinjiang, Fujian, are defined as "wings" (land and seagateway) core area.
Through this opportunity, local investmentshave taking off. An official of a west province revealed to "ChinaTimes" reporter that, the province has not involved in much of theprojects, due to a previously circulated “Belt and Road” key projects list, sothey are encouraging local enterprises in the province to report “Belt and Road" related projects.
Start a number of major projects
Earlier there was rumor regarding Chinawill release the implementation of the "Belt and Road" program in2015 Boao Forum for Asia, the forthcoming "Belt and Road" plan willinclude a detailed list of major projects. The list will indicates projectswill be signed and implement in the coming years, involving railways, highways,energy, information, industrial parks, a total of hundreds of major projects.
The final published consist of only onetop-level design, the list of major projects are not covered. However, accordingto "China Times" reporter’s interview notes, such a list exists, andhas been circulated internally, consisting infrastructure projects involved inKazakhstan, Kyrgyzstan, Tajikistan, Pakistan and other neighboring countries invarious provinces.
On March 31 the Ministry of Commerce held aregular press conference, the Ministry of Commerce spokesman Shen Danyang also mentionedthese major projects again: "The Commerce Department will strengthen thecommunication with involving countries, and jointly promote the implementationof a number major cooperation projects.”
This is not the first time the Ministry ofCommerce mentioned the "Belt and Road" major projects, as early aslast December have had a similar expression, "the Commerce Department willmake good use of Asian infrastructure investment banks and 'Silk Road Fund' tostart a group of major cooperation projects as soon as possible to obtain theresults of the early harvest.”
It is reported that use of clean coalprojects is one of these major cooperation projects of Qinghua Group cooperatingwith Kazakhstan. Li Lei, general manager of Ningxia Qinghua Investment HoldingsLimited told "China Times" reporter that this project is signed bythe chairman of the company during Li Keqiang's visit to Kazakhstan, worth of $3 billion investment.
March, the National Development and ReformCommission held six provinces economic situation and find a foster new growthpoint forum in Anhui. National Development and Reform CommissionSecretary-General Li Piao Min mentioned at the meeting, to give full play of akey investment, around the "seven categories of major investment projectspackage, six major areas of consumer projects" and "Belt and Road",the joint development of Beijing, Tianjin, the Yangtze river economic zone,enrich project catagory.
Almost all provinces along the "Beltand Road” are in action. Above mentioned western provinces local officials saidto the reporter, they had seen "Belt and Road" list of majorprojects, but unfortunately, even though the province is located as the westernfortress, but provinces did not involve in many of the major projects. Now theyare launching enterprises in the province to report "Belt and Road"related projects to catch the express train as soon as possible.
Specific to each region, how to connect"Belt and Road" provinces, as well as planning a new project, hasbecome the top priority of the current work.
Such as Qingdao, around the goal to create"Belt and Road" important northern gateway cities, Qingdao developedand implemented a "Qingdao accelerate the" go "Strategic ActionPlan" of "Belt and Road", the layout to promote investment andtrade of nearly 80 key projects. Early March this year, Xi'an also issued a"strategic economic zone in Xi'an Silk Road construction planning"and "Xi'an Eurasia comprehensive economic park development plan", andlaunched the first batch of 60 key projects in the economic zone of the SilkRoad, the total investment reached 115.5 billion yuan. Among them, there are 12projects’ total investments are more than 3 billion yuan, there are four projectswith a total investment of 10 billion yuan.
The new round of investment boom
Why "Belt and Road" program makethe country go "crazy"? The answer may be in these figures.
President Xi Jinping at the annual meetingof the Boao Forum for Asia listed a few "eye-catching" data: the nextfive years, China’s imported goods will reach over 10 trillion US dollars,foreign investment reach over 500 billion US dollars, the number of outboundtourism will be more than 500 million people.
According to public information statisticsthe local "Belt and Road" program proposed, ongoing infrastructureconstruction scale has reached 1.04 trillion yuan, including Chongqing,Sichuan, Ningxia, Jiangsu, Hainan, Yunnan, Shaanxi, Guangxi, Zhejiang, InnerMongolia Xinjiang, Gansu, Qinghai, Guangdong, Fujian and other provinces, wherethe railway investment of nearly 500 billion yuan, 123.5 billion yuaninvestment in highways, airport construction investment of 116.7 billion yuan,more than 170 billion yuan investment in water conservancy and port.
"Just in China is concerned, “Belt andRoad” strategic plan encompasses many border provinces and the westernprovinces, these areas are mostly underdeveloped regions. While Belt and Road'strategy in the infrastructure and industrial development will bring to theseareas of tremendous growth opportunities. “The Asia Foundation researcher, Politicalscience Dr. Bian Shi Bian of GeorgeWashington University said.
Executive President of the Academy ofChinese Minsheng Securities Guan Qingyou said, infrastructure is a prerequisitefor interoperability "Belt and Road" program, in accordance with thegeneral infrastructure construction period of 2-4 year, in 2015 the value ofinvestment of "Belt and Road"program worth about 300 billion to 400 billion yuan. Taking into account theimpact of infrastructure multiplier and the GDP deflator, is expected to boostGDP growth from 0.2 to 0.3 percentage points.
Related statistics show, "Belt andRoad" program will cover 4.4 billion population, GDP size of more than 20trillion US dollars, accounting for 63% and 29% respectively of the world. GuanQingyou said that with "Belt and Road" program to enter theimplementation phase, the investment downturn trend may be reversed, the fourthinvestment boom of the Chinese economy is about to pull off.
Regardless of local governments acting onthe program, companies are still the main benefiting party of "Belt andRoad" program, but also the servicing party of "Belt and Road".SASAC Deputy Director Huang Danhua recently said in the central business planningand development work conference that, in 2015 the central enterprises toactively participate in the country to promote the "Belt and Road"and other strategies to accelerate the construction of key projects.
"Reaching out massively, high-level imports,these are ‘Belt and Road' effort to drive economic growth, there are many newopportunities for entrepreneurs." Wing Lung Bank chairman, formerMerchants Bank [0.00% of funds research report] President Ma Weihua said at theChina Green Company’s 2015 annual meeting to reporters, as an entrepreneur willcertainly have to realize new business value, enter the new mode, may face alot of contradictions, but for entrepreneurs it is to see these changes, seethe new challenges, we must see a lot of opportunities as well.
Under the national launch of "Belt andRoad" plan, the best time of enterprises "going out" haveemerged.