Premier Li Keqiang chaired a State Council executive meeting on December 24 to enforce the financial support to enterprise “going global” so as to pursue steady growth, structural readjustment and further reform.

    It was agreed on the meeting that keeping in mind both the domestic and international situations and increasing the financial support to enterprises implementing the “go global” strategy is a significant measures to pursue steady growth and structural readjustment and can advance our advantages and overcapacity to go global, promote international capacity cooperation, expand development space, enhance the international competitiveness of Chinese products especially equipment, advance the optimization and upgrading of foreign trade structure, and promote the manufacturing industry and financial industry moving to a medium-high level. Matters adopted on the meeting are as follows:

   First is simplifying the procedures for administration examination and approval to facilitate the implementation of “go global” strategy. Changing the pre-registration of foreign exchange administration of overseas investment to registration at exchanging funds at banks. Lifting the restrictions on domestic enterprises and commercial banks for issuing yuan-denominated bonds overseas. Simplifying the procedures for approval of listing, and merger and acquisition of a company as well as establishment of bank branches overseas.

   Second is expanding the financing channel to assist the implementation of “go global” strategy. Providing financing insurance for the export of large equipment in complete sets as much as possible and encouraging commercial banks to increase the financial support to the design, manufacturing, etc. of major equipment. Advancing the application of diversification of foreign exchange reserve, giving play to policy banks and other financial institutions, absorbing social capital and adopting bonds, funds, etc. to provide long-term foreign exchange fund support to “going-global” enterprises.

   Third is improving policy system to serve the implementation of “go global” strategy. Improving RMB cross-border payment and settlement system. Steadily opening the short-term export & credit insurance market to increase the number of business entities. Innovating the export & credit products, striving to develop overseas investment insurance, reducing the premium rate reasonably and expand the coverage of policy-based insurance. Providing good service in respect to information, laws, consul, etc., strengthening coordination, preventing vicious competition, strengthening risk control to escort Chinese enterprises and equipment to go global.

   Premier Li Keqiang said we should change China from a “world factory” exporting consumer products to an important base providing the world with advanced equipment. There are many countries with great demand on infrastructure, which provide a rare opportunity to Chinese equipment “going global”.

    During the visit to Kazakhstan a week ago, Premier Li Keqiang obtained “higher-than-expected achievements”: Premier Li successfully signed a China-Kazakhstan capacity cooperation framework agreement with a value of $18 billion, besides the cooperation agreement with a value of $14 billion. At the State Council executive meeting on December 24, Premier Li Keqiang recalled “at the beginning of negotiation, Kazakhstan only hoped to export more energy and agricultural products to China.” However, Premier Li Keqiang grasped the opportunity to put forward a package plan of China-Kazakhstan capacity cooperation when Kazakhstan introduced their “Pathway to the Future” economic policy. “Pathway to the Future” is a new economic policy put forward by President of Kazakhstan Nazarbayev one month ago; it prioritizes the construction of roads, residences and other infrastructures. After inquiry, Li Keqiang found that there is no cement plant or sheet glass plant but a small steel works in Kazakhstan, which can’t meet the demands of such economic policy at all. “Could you consider our cooperation? We construct production lines here to help you implement the “Pathway to the Future” economic policy?” Li Keqiang said to Nazarbayev. When hearing this suggestion, Nazarbayev was moved and showed a great interest. On the evening of the negotiation, Kazakhstan seized the time to develop programs and raise money; on the morning of the next day, Prime Minister of Kazakhstan Massimov had breakfast with Premier Li Keqiang and determined the amount of China-Kazakhstan capacity cooperation as $18 billion. On the next day, President of Kazakhstan spoke highly of Premier Li Keqiang’s practical and efficient diplomatic style and called China-Kazakhstan production capacity cooperation as “Li Program”. At the State Council executive meeting on December 24, Li Keqiang said China and Kazakhstan will make cooperation in steel, cement, flat glass, thermal power plant, etc. all of which are our excess and high-quality production capacity. The world economy recovery proves fragile, the pressure of economic downturn is increased and the domestic demand is insufficient, but most developing countries, especially emerging market countries, have high demands on infrastructures, so we hopes to stimulate and maintain economic growth thereby. “We have so many excess and high-quality production capacity and there are many countries with great demand on infrastructure construction, which provide a rare opportunity to Chinese equipment ‘going global’” Li Keqiang said. Actually, the “go global” strategy advance Chinese enterprises to compete in the international market and help the industry upgrade in the competition. 

   Taking “China-Europe Land-Sea Express Route” as an example, Li Keqiang said enterprises “going global” cannot only consume the domestic excess and high-quality production capacity but also promote Chinese economic restructure and industrial transferring and upgrading. When attending the Summit of Heads of Government of China and 16 Central and Eastern European Countries on December 17, Li Keqiang made agreement with Prime Ministers of Serbia, Hungary and Macedonia to co-construct “China-Europe Land-Sea Express Route”. On the date when Li Keqiang ends the Asia-Europe visit and returns Beijing, the Greek parliament gives approval to COSCO Shipping-Piraeus Port Friendly Negotiation Agreement to allow COSCO Shipping to invest €230 million to expand Piraeus Port Pier 3 and improve the throughput significantly, which makes the proposed China-Europe Land-Sea Express Route take a substantial step forward. Li Keqiang said the adoption of Shipping-Piraeus Port Friendly Negotiation Agreement provides Chinese enterprises a more convenient land-sea route entering Europe and is of significance to advance Chinese equipment to go global. “The export value of goods in one container can only afford a color TV during the past, but now the Chinese equipment ‘going global’ is of great additional value!” Li Keqiang said “more importantly, we must satisfy the international standards when we constructing projects overseas; in fact, we put our enterprises in the global market and make our related industries upgrade in the competition.”

   Li pointed out that export of Chinese equipment can drive the “going global” of large enterprises but also have many upstream-downstream small and medium-sized enterprises go global at the same time. Rather than buy the bonds of other countries, we should use the foreign exchange reserve to support the “going global” of Chinese equipment and promote industry upgrading and improve people's livelihoods. Li Keqiang said although many production capacities are abundant in China but are cost-effective and high-quality ones in the international market. At present, the world economy recovery proves fatigue, increasing financial support is of significance to the “going global” of Chinese equipment.

   Li said we should expand financing channels, explore PPP (private-public partnership), BOT ( build-operate-transfer) and other investment and financing modes, and promote the application of diversification of foreign exchange reserve. We have a larger foreign exchange reserve, rather than buy the bonds of other countries and earn a few interests at the end of year, we should use the foreign exchange reserve to support the “going global” of Chinese equipment and promote industry upgrading and improve people's livelihoods. 

   Premier Li Keqiang said China has stepped into a new stage: changing from a “world factory” exporting consumer products to an important base providing the world with advanced equipment. We will have Chinese enterprises and products receive inspection of higher level in the international market and improve quality, become more efficient and upgrade in the competition.