GSME, with the support of its China Strategic Partner, Uniquantum Investment Lt, can help non Chinese Private Sector Infrastructure and Construction Companies to:
Opportunities for Non Chinese Infrastructure, Construction, and Infrastructure Technology/Equipment Firms to Participate in, and Benefit from, China’s One Belt, One Road Initiative (or BRI)
There are 68 countries that have signed on to be part of China’s One Belt One Road Initiative (also known as BRI – Belt Road Initiative) and are targeted for major Infrastructure Investment and Financing from China.
There is already US$1 Trillion allocated for the initiative with perhaps upwards of US$4 trillion eventually going to the initiative over the next decade from China. Also, there is now financing from other countries coming into the initiative as well, with likely considerably more in the future.
“Most countries along the BRI (One Belt One Road ) route, including Pakistan, Myanmar and the Central Asian states, suffer from great capital shortages and a lack of market access due to the absence of physical and financial infrastructure. Through loans, investment and aid, China is offering these countries a solution to their problems and, in many ways, entry into global financial markets” (National Interest (June 2017): Why America Must Participate in China’s Belt and Road Initiative)
“BRI (one Belt one Road Initiative) offers an extension of Beijing’s already expansive commercial network, with the potential of placing China even more firmly at the center of the global economy. Weirdly, “Belt” refers to land transport while “Road” represents sea lanes. Nevertheless, the basic idea is to enhance old and create new infrastructure to promote commerce among Asia, the Middle East, Africa and Europe.
Nearly seventy countries have signed agreements with the PRC to participate. At its most expansive, the program envisions $4 trillion in spending and could touch two-thirds of the world’s people responsible for a third of the world’s GDP. (National Interest (June 2017): One Belt One Road: Why Trump Should Get Behind China’s Economic Growth Plan)
If you are a Construction or Infrastructure Company this is not an initiative that you want to be left out of. A large part of the World’s Infrastructure Spending and Infrastructure Development work and contracts are going to be in this initiative over the decade and go to the Infrastructure Firms that can position themselves to be involved. And there is considerable opportunity for Non-Chinese firms to be involved and benefit. But you have to make the commitment to do the work necessary to get yourself positioned to be in and benefit.
A number of Non-Chinese companies already are doing the work to get into the One Belt One Road Initiative as they realize that they can’t afford not to be in. These companies have decided that too much opportunity for revenues and profits would be lost if they were left out. And perhaps even more importantly for some companies in their desire to do what is necessary not to be left out, is the fear that major competitive ground could be lost to competitor companies who did get in to the worlds principal infrastructure development initiative over the next decade, if they did not.
“The initiative, called “One Belt, One Road,” looms on a scope and scale with little precedent in modern history spanning more than 60 countries.
As China plans to build a raft of roads, rail lines, ports and airports across Asia, Africa and Europe, skeptics say Chinese companies will be the only real winners from the ambitious initiative.
General Electric disagrees.
In 2014, Chinese construction and engineering companies ordered just $400 million worth of equipment from G.E. to install overseas, overwhelmingly in the region that encompasses the effort, known as “One Belt, One Road.” Last year, those orders totaled $2.3 billion, and G.E. plans to bid for an additional $7 billion in orders for natural-gas turbines and other power equipment in roughly the next 18 months.
“We have a laser focus on winning these,” said Rachel Duan, the chief executive of General Electric China.
Western companies are angling aggressively for a piece of the action. Citibank won a contract from Bank of China to handle a complex $3 billion bond offering last month to raise money for opening branches across Asia, Eastern Europe and East Africa. The technology and manufacturing company Honeywell International is selling equipment to Central Asia for processing natural gas.
Some American companies are taking steps to improve their chances — but that sometimes means manufacturing more in China, not the United States. Ms. Duan said G.E. had focused on ways to produce goods in China to meet the country’s requirements that some of the work be done locally. Honeywell said in a statement that it had also been looking for ways to produce more goods in China for the program.
“When the roads are built, when the ports are built, when the power plants are built, I think the other opportunities will come,” Ms. Duan said.”
(New York Times (May 2017): “U.S. Firms Want In on China’s Global ‘One Belt, One Road’ Spending”)
China’s Domestic Infrastructure and Construction Business Opportunities
According to Freedonia:
“Construction expenditures in China will continue to grow through 2019, fueled by an increasing urban population, continued industrialization, expanding foreign investment and rising personal income levels.
Expenditures to Rise Nearly 8% Annually through 2019:
Construction expenditures in China are expected to grow 7.8 percent per annum in real terms through 2019. Gains will be driven by ongoing industrialization, an increasing urban population, expanding foreign investment funding, rising personal income levels, and further population and household growth in China. In addition, the government’s effort to sustain growth in the manufacturing sector, improve the country’s infrastructure, expand municipal utilities, and balance regional economic disparity will help growth in construction spending.
Demographics to Bolster Residential Construction:
Residential building construction, which accounted for 31 percent of construction spending in China in 2014, will advance at a 7.5 percent annual pace in real terms through 2019. Rising personal income levels, population and household growth, and population migration from rural to urban areas will drive advances. Government efforts to improve living conditions for low income earners (such as construction of affordable and low rent houses in urban areas and subsidies for alterations of dilapidated farmhouses in rural areas) will also further gains in this segment.
Domestic Spending to Fuel Non Residential Building:
Non-residential construction spending is forecast to grow 8.1 percent annually in real terms through 2019. Robust growth in consumer spending for manufactured goods and services, accommodative government policies, and foreign direct investment, as well as government efforts to improve standards of living in China, will all help to spur gains in non-residential infrastructure”.
Many of the world’s most impressive engineering accomplishments over the last 20 year have been in China, and over the last decade mostly by Chinese firms, using Chinese construction and engineering technology. In the early days, China brought in the best engineering and construction expertise from around the world to help out and to learn from. And learn China’s firms did, but not only did they learn the best existing technology and “know-how”, they further developed and improved those engineering and construction technologies, techniques, and that “know-how”. China’s infrastructure companies have now built up world leading engineering and construction capabilities in many areas.
It is true that all the engineering and construction challenges that have had to be met and overcome in developing these projects have allowed China’s major Infrastructure engineering and construction companies to become highly expert at being able to build almost anything, anywhere, and to do it on time, and on budget.
However, there still are opportunities for Foreign Infrastructure, Construction, Engineering, and Infrastructure Technology/Equipment firms with particular expertise, technologies, and capabilities to participate in China’s continued construction and infrastructure expansion and upgrades.
Getting in and succeeding is not as easy as it was in the 1980’s, 1990’s, or even the 2000’s because of the dramatically increased capacities and capabilities of China’s domestic infrastructure and construction firms.
But it is still very possible, and if you have the right mix of capabilities, and can be get in, and are well positioned, it can be quite lucrative.
China has much more money to invest and finance these projects than it did in the 1980’s, 1990’s or 2000’s.
And China is set to have even more financial and investment capabilities as China’s economy is projected to expand in annual output to approximately US$80 trillion a year by 2030 (an increase of more than US$50 trillion a year from its 2017 level of US$23 trillion. – an economic output that will dwarf the United States Economy which is projected to be approximately US$35 trillion by 2030 (in 2017 the United States Economy was approximately US$19 trillion in size).
GSME, with the support of its China Strategic Partner, Uniquantum Investment Lt, can help non Chinese Private Sector Infrastructure and Construction Companies to:
Types of Infrastructure Development Projects that could be supported include:
Specific Assistance that GSME working with Uniquantum Investment Ltd can provide to Private Sector Companies includes:
- Work successfully with China’s Infrastructure Companies and Attract Financing from China for Joint Venture Infrastructure Development and Operation Projects with China’s Infrastructure Companies for Projects in your Country;
- Participate in, and Benefit, from China’s One Belt, One Road Initiative (or BRI);
- Participate in, and Benefit from, China’s continued Domestic Construction and Infrastructure Expansion and Upgrades.
Opportunities for Non Chinese Infrastructure, Construction, and Infrastructure Technology/Equipment Firms to Participate in, and Benefit from, China’s One Belt, One Road Initiative (or BRI)
There are 68 countries that have signed on to be part of China’s One Belt One Road Initiative (also known as BRI – Belt Road Initiative) and are targeted for major Infrastructure Investment and Financing from China.
There is already US$1 Trillion allocated for the initiative with perhaps upwards of US$4 trillion eventually going to the initiative over the next decade from China. Also, there is now financing from other countries coming into the initiative as well, with likely considerably more in the future.
“Most countries along the BRI (One Belt One Road ) route, including Pakistan, Myanmar and the Central Asian states, suffer from great capital shortages and a lack of market access due to the absence of physical and financial infrastructure. Through loans, investment and aid, China is offering these countries a solution to their problems and, in many ways, entry into global financial markets” (National Interest (June 2017): Why America Must Participate in China’s Belt and Road Initiative)
“BRI (one Belt one Road Initiative) offers an extension of Beijing’s already expansive commercial network, with the potential of placing China even more firmly at the center of the global economy. Weirdly, “Belt” refers to land transport while “Road” represents sea lanes. Nevertheless, the basic idea is to enhance old and create new infrastructure to promote commerce among Asia, the Middle East, Africa and Europe.
Nearly seventy countries have signed agreements with the PRC to participate. At its most expansive, the program envisions $4 trillion in spending and could touch two-thirds of the world’s people responsible for a third of the world’s GDP. (National Interest (June 2017): One Belt One Road: Why Trump Should Get Behind China’s Economic Growth Plan)
If you are a Construction or Infrastructure Company this is not an initiative that you want to be left out of. A large part of the World’s Infrastructure Spending and Infrastructure Development work and contracts are going to be in this initiative over the decade and go to the Infrastructure Firms that can position themselves to be involved. And there is considerable opportunity for Non-Chinese firms to be involved and benefit. But you have to make the commitment to do the work necessary to get yourself positioned to be in and benefit.
A number of Non-Chinese companies already are doing the work to get into the One Belt One Road Initiative as they realize that they can’t afford not to be in. These companies have decided that too much opportunity for revenues and profits would be lost if they were left out. And perhaps even more importantly for some companies in their desire to do what is necessary not to be left out, is the fear that major competitive ground could be lost to competitor companies who did get in to the worlds principal infrastructure development initiative over the next decade, if they did not.
“The initiative, called “One Belt, One Road,” looms on a scope and scale with little precedent in modern history spanning more than 60 countries.
As China plans to build a raft of roads, rail lines, ports and airports across Asia, Africa and Europe, skeptics say Chinese companies will be the only real winners from the ambitious initiative.
General Electric disagrees.
In 2014, Chinese construction and engineering companies ordered just $400 million worth of equipment from G.E. to install overseas, overwhelmingly in the region that encompasses the effort, known as “One Belt, One Road.” Last year, those orders totaled $2.3 billion, and G.E. plans to bid for an additional $7 billion in orders for natural-gas turbines and other power equipment in roughly the next 18 months.
“We have a laser focus on winning these,” said Rachel Duan, the chief executive of General Electric China.
Western companies are angling aggressively for a piece of the action. Citibank won a contract from Bank of China to handle a complex $3 billion bond offering last month to raise money for opening branches across Asia, Eastern Europe and East Africa. The technology and manufacturing company Honeywell International is selling equipment to Central Asia for processing natural gas.
Some American companies are taking steps to improve their chances — but that sometimes means manufacturing more in China, not the United States. Ms. Duan said G.E. had focused on ways to produce goods in China to meet the country’s requirements that some of the work be done locally. Honeywell said in a statement that it had also been looking for ways to produce more goods in China for the program.
“When the roads are built, when the ports are built, when the power plants are built, I think the other opportunities will come,” Ms. Duan said.”
(New York Times (May 2017): “U.S. Firms Want In on China’s Global ‘One Belt, One Road’ Spending”)
China’s Domestic Infrastructure and Construction Business Opportunities
According to Freedonia:
“Construction expenditures in China will continue to grow through 2019, fueled by an increasing urban population, continued industrialization, expanding foreign investment and rising personal income levels.
Expenditures to Rise Nearly 8% Annually through 2019:
Construction expenditures in China are expected to grow 7.8 percent per annum in real terms through 2019. Gains will be driven by ongoing industrialization, an increasing urban population, expanding foreign investment funding, rising personal income levels, and further population and household growth in China. In addition, the government’s effort to sustain growth in the manufacturing sector, improve the country’s infrastructure, expand municipal utilities, and balance regional economic disparity will help growth in construction spending.
Demographics to Bolster Residential Construction:
Residential building construction, which accounted for 31 percent of construction spending in China in 2014, will advance at a 7.5 percent annual pace in real terms through 2019. Rising personal income levels, population and household growth, and population migration from rural to urban areas will drive advances. Government efforts to improve living conditions for low income earners (such as construction of affordable and low rent houses in urban areas and subsidies for alterations of dilapidated farmhouses in rural areas) will also further gains in this segment.
Domestic Spending to Fuel Non Residential Building:
Non-residential construction spending is forecast to grow 8.1 percent annually in real terms through 2019. Robust growth in consumer spending for manufactured goods and services, accommodative government policies, and foreign direct investment, as well as government efforts to improve standards of living in China, will all help to spur gains in non-residential infrastructure”.
Many of the world’s most impressive engineering accomplishments over the last 20 year have been in China, and over the last decade mostly by Chinese firms, using Chinese construction and engineering technology. In the early days, China brought in the best engineering and construction expertise from around the world to help out and to learn from. And learn China’s firms did, but not only did they learn the best existing technology and “know-how”, they further developed and improved those engineering and construction technologies, techniques, and that “know-how”. China’s infrastructure companies have now built up world leading engineering and construction capabilities in many areas.
It is true that all the engineering and construction challenges that have had to be met and overcome in developing these projects have allowed China’s major Infrastructure engineering and construction companies to become highly expert at being able to build almost anything, anywhere, and to do it on time, and on budget.
However, there still are opportunities for Foreign Infrastructure, Construction, Engineering, and Infrastructure Technology/Equipment firms with particular expertise, technologies, and capabilities to participate in China’s continued construction and infrastructure expansion and upgrades.
Getting in and succeeding is not as easy as it was in the 1980’s, 1990’s, or even the 2000’s because of the dramatically increased capacities and capabilities of China’s domestic infrastructure and construction firms.
But it is still very possible, and if you have the right mix of capabilities, and can be get in, and are well positioned, it can be quite lucrative.
China has much more money to invest and finance these projects than it did in the 1980’s, 1990’s or 2000’s.
And China is set to have even more financial and investment capabilities as China’s economy is projected to expand in annual output to approximately US$80 trillion a year by 2030 (an increase of more than US$50 trillion a year from its 2017 level of US$23 trillion. – an economic output that will dwarf the United States Economy which is projected to be approximately US$35 trillion by 2030 (in 2017 the United States Economy was approximately US$19 trillion in size).
GSME, with the support of its China Strategic Partner, Uniquantum Investment Lt, can help non Chinese Private Sector Infrastructure and Construction Companies to:
- Work successfully with China’s Infrastructure Companies and Attract Financing in from China for Joint Venture Infrastructure Development and Operation Projects with China’s Infrastructure Companies for Projects in your Country;
- Participate in, and Benefit, from China’s One Belt, One Road Initiative (or BRI);
- Participate in, and Benefit from, China’s continued Domestic Construction and Infrastructure Expansion and Upgrades.
Types of Infrastructure Development Projects that could be supported include:
- Port/Harbour Construction, Expansion, and Upgrade Projects;
- Energy and Electricity Production Projects;
- Power Grid Infrastructure Construction, Expansion, and Upgrade Projects;
- Highway/Road Construction, Expansion and Upgrade Projects;
- Human Use Water System Construction, Expansion and Upgrade Projects;
- Bridge Construction, Expansion and Upgrade Projects;
- Airport Construction, Expansion and Upgrade Projects;
- Railway Construction, Expansion and Upgrade Projects;
- Canal Construction, Expansion and Upgrade Projects;
- Hospital Construction, Expansion and Upgrade Projects;
- Construction of Nursing Homes and Retirement Homes for the Elderly;
- Education and Training Facility Construction, Expansion and Upgrade Projects;
- Stadium and Arena, Construction, Expansion and Upgrade Projects;
- Performance Art Theatre Construction, Expansion, and Upgrade Projects;
- High Speed Rail Construction Projects;
- Telecommunications Infrastructure Development and Upgrade Projects;
- IT Infrastructure Development and Upgrade Projects;
- Agriculture Irrigation Projects to Support Agriculture Productivity and Production Improvements;
- Agri-Food and Seafood Processing and Distribution Infrastructure Construction, Expansion and Upgrade Projects; and
- Conference Centre and Trade Show Facility Construction, Expansion, Upgrade Projects.
Specific Assistance that GSME working with Uniquantum Investment Ltd can provide to Private Sector Companies includes:
- Support and Assistance in Securing Project Financing for Infrastructure Projects from China’s Private Financial Sector, China’s Institutional Investors and Funds, and China’s State Owned Commercial and Investment Banks;
- Support and Assistance in Finding the Appropriate Chinese Infrastructure Company to Participate as a Partner with your Company in Infrastructure Projects in your Country;
- Support and Assistance in the Marketing and Promotion of Particular Infrastructure Projects for Chinese Investment;
- Support and Assistance Marketing and Promoting your Company and its Capabilities to China, to China’s Infrastructure Companies, and to China’s Private Financial Sector, China’s Institutional Investors and Funds, and China’s State Owned Commercial and Investment Banks;
- Support and Assistance in Marketing your Company and its Capabilities to the Appropriate Decision-makers in China for your Company’s Participation in a Specific Project in China or in China’s One Belt One Road Initiative;
- Support and Assistance in Negotiations with China’s Infrastructure Companies, and in Negotiations on Project Financing with China’s Financial Services Sector and Financial Institutions;
- China Due Diligence Studies;
- Support and Assistance in Project and Business Structuring;
- Support and Assistance in Project Design, and Planning;
- Ongoing Project Development and Operations Support and Assistance.
- Preliminary and Advanced Business Plan and Market Plan Development for Securing and Improving Infrastructure Business with China;
- Support and Assistance in Identifying Projects in China and in China’s One Belt One Road Initiative (or BRI) that your Company could get involved with;
- Preliminary and Advanced Evaluation, Assessment, and Identification of What Could be Achieved by your Company (given your company’s capabilities) (the opportunities present) and (how you could be positioned) in Doing Business with Chinese Infrastructure Companies and/or with Investment and Financing from China for Infrastructure Development and Operations for Projects in your Country;
- Preliminary and Advanced Evaluation, Assessment, and Identification of What Could be Achieved by your Company (given your company’s capabilities) (the opportunities present) and (how you could be positioned) with Respect to Participation in China’s One Belt One Road Initiative (or BRI);
- Preliminary and Advanced Evaluation, Assessment, and Identification of What Could be Achieved by your Company (given your company’s capabilities) (the opportunities present) and (how you could be positioned) with Respect to Participation in China’s Continued Domestic Construction, and Infrastructure Construction, Expansion, and Upgrades;
- Evaluation and Assessment of your Company’s Current Business Positioning, Operations and Strategies for Business with China to Determine if More Effective Approaches are Possible;
- Preliminary and Advanced Evaluation of the Opportunities and Requirements for your Infrastructure Company/Business to Succeed in Business with China;
- Consulting Services and Guidance on the Nature of the Opportunities in the Infrastructure Construction/Development and Operation Business with China and What They Involve.