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The Belt and Road Forum for International Cooperation was held in Beijing on May 14, 2017. Gao Hongwei, the Chairman of CASIC attended meetings of relevant themes. In recent years, with the contribution of six international cooperation economic corridors, namely China-Mongolia-Russia, Eurasian Continental Bridge, China-Central Asia-West Asia, China-Indochina Peninsula, China-Pakistan and Bangladesh-China-India-Myanmar, CASIC takes the "Belt and Road" initiative as an important strategic opportunity for the international industrial layout and the means of enhancing the global resource allocation capability. CASIC schemes the overall thinking of the international industrial layout from top level and is devoted to promote the major international operation projects under the "Belt and Road” initiative. Focusing on the medium and long-term forward-looking layout and guided by the “Belt and Road” initiative, CASIC places emphasis on international operation of the civil industry and works on overseas investments, mergers and acquisitions, international project contracting, regional marketing systems and export of proprietary products.
Exploiting the boundary with overseas mergers and acquisitions
CASIC has promoted the development of advantageous industries to the international market and has made first achievements in overseas investment, overseas mergers and acquisitions, and regional marketing network construction. The international operation income of CASIC increased by 29% in 2016. CASIC has made first achievements in overseas mergers, laying a good foundation for high-level international operations. In 2013, CASIC successfully acquired Luxembourg IEE and became a global leader in automotive security sensor market segments. IEE has five R&D and marketing centers, six factories in nine countries including Luxembourg, France, Germany, Slovakia, the United States, and China with more than 3,800 employees; In 2014, IEE's new plant in Slovakia was officially put into operation; In 2015, IEE successfully acquired ALL Circuits company in France as a carrier and thus mastered the world's leading electronic manufacturing technology, management and manufacturing capabilities. The acquisitions above have provided CASIC with a competitive advantage in the field of automotive sensors and have laid a solid foundation in European market. Ma Kai, a Vice Premier praised this acquisition as the “Model of China-Luxembourg Cooperation”. Besides, the established joint venture Sanjiang-Volat promoted its layout in high-power hydraulic automatic transmission and corresponding part and component sectors.
Making effort in international project contracting
CASIC takes advantage of its resource and channels and looks for international engineering contracts in the information technology and modern service industries. CASIC successively undertook the self-service customs clearance project in Hong Kong, the port security project in Pakistani and the electrical automation and arts subcontracting projects in Indonesia, Malaysia, Uzbekistan and Bhutan. CASIC entered the short list in the bidding of the Blue Amazon project in Brazil in 2015 and signed contract of power grid expansion in Kenyan, sewage treatment project in Cameroon and other international projects. CASIC actively cultivated and promoted the international engineering contracting business.
Focusing on regional marketing network construction
In order to strengthen the ability to expand the international market in the new period, CASIC has reinforced the construction of the “1+1+N” international operation platform system. CASIC is building an international regional marketing network consisting of VOLINCO, Shenzhen Industrial Research Institute and overseas offices, sole proprietorships, joint ventures, authorizations, agencies, exports, and strategic alliances and so on. CASIC will strengthen the main platform and main channel functions of VOLINCO and Shenzhen Industrial Research Institute and highlight the professionalization and specialization role of the featured platform in channel construction. Based on the functional position of the main platform, a number of overseas offices have been established in Belarus, Saudi Arabia, Indonesia, Turkey, Qatar and other countries to serve foreign trade market development and project fulfillment. The secondary and some third-level organizations are establishing their own overseas offices to promote the export of their proprietary products.
Facing the future, CASIC will implement the “Belt and Road” initiative, take overseas direct investment and M&A, international capacity cooperation and international project contracting as the means, focus on establishing regional marketing system, highlight the coordinated interaction between the military and the civilians and promote strategic emerging industries, so as to promote capacity output and export of proprietary products and create a two-way pattern of “bringing in and going out” to achieve the leadership in segmented market and scale expansion. According to the “Belt and Road” initiative, CASIC will focus on creating three key regions of international industrial layout, namely South-Southeast Asia, West-Central Asia and Europe. CASIC will also expand the cultivation area of two international industrial layout in Africa and Russia-Ukraine-Belarus as well as the two international business segments of international economy and technical cooperation and commercial aerospace. CASIC will strive to further optimize international industrial layout by 2030 and cover the core regions along the Belt and Road with featuring different functions, distinctive industrial features and coordinated interaction between the military and the civilians and become a world’s leading aerospace defense company with international competitiveness and brand influence by taking the dominant position in both on-line and off-line areas and increase the cross-border index significantly.
