Chen Derong Pointed out During Leading Investigation and Research Delegation to India, Iran and Pakistan [ 2016-09-08 ]

“The internationalization of Baosteel should not only have economic sense, but also should have political sense, it should implement national will, undertake national mission, obey by and serve for national strategy, and we should unswervingly step on the road of ‘one belt one road’”. To better devise the pushing forward of “go-out” strategy, promote international production capacity cooperation with countries along the route, from August 10th to 19th, general manager of the group company and deputy secretary of CPC Baosteel committee Chen Derong led delegation to India, Iran and Pakistan for investigation and research. During the period, CPC Central Committee held “work conference on pushing forward construction of ‘one belt one road’”, delegation combined what they had witnessed and felt, and seriously learned about and understood the spirits of general secretary of CPC Central Committee Xi Jinping’s key speech, and expressed the willingness to commit themselves to brand new cause of “one belt one road” with strong senses of responsibility and mission. Assistant to general manager of group company Hou Angui, Economic Management Research Institute, Baosteel Engineering, Baosteel Singapore Pte Ltd., Baosteel Europe etc. participated in the investigation and research.

During the investigation and research, the delegation carried on all night and had a tight schedule of having fourteen times of flights within ten days, consecutively going around five steel plants and one sea port, holding twelve meetings with relative government organizations and enterprises, paying visit to embassies and consulates of our nation in India, Iran and Pakistan, and visiting and greeting oversees employees of Baosteel stationed at these locations.

In 2014, after election of Modi as premier, India embraced “Modi era”, and to construct a strong, prosperous and inclusive India and implement “made in India” had formally became national policies of India. Under the effects of multiple layers of factors, economic development speed of India began to be boosted. According to forecast of World Steel Association, steel production capacity in India would sustain an annual average increase rate of 7%, would reach approximately 200 million tons in 2020, this contained a great number of potential opportunities for international production capacity cooperation.

Iran had rich resources of iron ore and natural gas and possessed fine conditions for iron and steel production. After lifting of western sanctions, Iron sped up economic recovery and development, and the demand for steel rapidly increased. Fine-qualified brand, products and technologies owned by Baosteel had attracted keen interests of government main responsible organizations of Iran, and they had expressed hopes to enhance understanding with Baosteel and carry out cooperation in steel production technologies and engineering technologies.

Pakistan was a key country in “one belt one road”, and had been keeping all-weather friendly relationship with China. Its economic base was relatively reliable, and it was rich in labor resource. In recent years, investment in Pakistan by China increased in leaps and bounds, the increase rate of bilateral trade volume kept above 10%, and Pakistan had became one of the key markets of overseas contracted engineering projects. Relative government organizations and enterprises of Pakistan had successively expressed its welcome for Baosteel to participate in China-Pakistan economic corridor construction through international production capacity cooperation.

The date of August 17th coincided with the time when the CPC Central Committee held “work conference on pushing forward construction of ‘one belt one road’”, members of the investigation and research delegation specially set aside time to organize the watching and serious learning of key speech of general secretary Xi Jinping. In his speech, Xi Jinping mentioned many times the contents of pushing forward cooperation in international production capacity and equipment manufacture, benefiting people of various nations along the route, establishing global vision, and going to the world with even more positive and active poise. These had aroused deep feelings in members of the delegation. They successively expressed that through all the way, they had deeply sensed the great vision of the CPC Central Committee in strenuously pushing forward the strategy of “one belt one road”, and the significance was enormous.

Chen Derong said, it was with good timing, geographical convenience and good human relations to push forward internationalization currently, Baosteel should closely follow up national strategy of “one belt one road”, and unswervingly “go out”. Baosteel was actively transforming into capital operation and investment company, internationalized operation had its timing now, this was the good timing; national strategy of “one belt one road” had pinpointed key regions, this was the  geographical convenience; this year, Baosteel had set pushing forward the work of “one belt one road” as one of the items of annual key work, talents for internationalization had been preparing for too many days and would be used for one day, this was the good human relations. Under the circumstances of the nation entering the new strategic development period, and the Chinese steel industry and Baosteel both were undergoing transformative development, Baosteel based on its fine system capacity fostered through over thirty years of development, its brand advantages, rich technical and management experience accumulated over long term and domestic fine development foundation, it would be imperative for Baosteel to go with the trends to further “go out”. “One belt one road” would be the inevitable route for Baosteel to realize the leap forward from product internationalization to production capacity internationalization, and to build cross-country aircraft carrier which led global steel industry.

Chen Derong emphasized, as a central SOE, internationalization of Baosteel should be understood from the layer of national strategy, should implement national will, undertake national mission, obey by and serve for national strategy. Not only economic sense should be considered, but also political one. Overall arrangements should be made for political considerations and economic ones to ceaselessly enhance competitiveness of international market, and make due contributions of Baosteel people to smoothly implementing national strategy and realizing dream of strengthening the country with steel.

Chen Derong pointed out, internationalization of Baosteel should be divided into three steps, the first step was product internationalization, the second one was equipment internationalization, and the third step was manufacture internationalization. The new era should definitely result in the embracing of new development opportunities and business chances for Baosteel overseas cause, yet the overseas layout of “going out” was investment intensive, and a slight move in one part might affect the situation as a whole, so people must be very discreet in the operation process and actively seek support by national policies to evade risks, reduce potential losses and strive for reaping of profits. He asked Baosteel overseas workers and relative units of “one belt one road” to seriously learn and implement the spirits of key talk of general secretary Xi Jinping on “one belt one road”, duly align with current work, carry out national policies and market investigation and research, organize project pre-feasibility research, focus on key regions, key nations and key projects, elaborately organize and exert forces with accuracy, establish senses of mission and responsibility, enhance confidence, be filled up with passion and fighting will to spearhead the battle and pave sound foundation for work of “one belt one road” of Baosteel.

Source:Baosteel News Centre