“One Belt, One Road” Expanding Product Exports Encouraging Tire Plants to Be Established Abroad

Promoting the construction of “One Belt and One Road” is a major implementation of the country’s implementation of a new round of opening to the outside world. How to actively integrate and jointly build and share the “One Belt and One Road” strategic opportunity is a realistic and major issue for Dongying City.

Business needs to go out

By the end of 2014, there were 172 “going global” companies in Dongying City. In 2014, the city’s newly contracted foreign contracted projects amounted to USD 71.9 million, an increase of 49.3% year-on-year, and sent 1,495 labor services. Newly approved overseas investment companies (institutions) 30, an increase of 114.3%, the city received 262 service outsourcing contracts, an increase of 89.9%.

“Dongying’s leading industries are highly relevant to foreign countries and have obvious advantages in going out of trade cooperation and participating in international competition. They include petroleum equipment, rubber tires , agricultural and sideline products, textiles, copper, gas power generation, petrochemicals, salt chemicals, and auto parts. Photovoltaic power generation and other industrial products have a large volume of exports and a wide range of radiation,” said Li Junfeng, vice mayor of Dongying City. However, with the continuous development of these industries, problems such as overcapacity, resource and energy consumption have begun to appear, and some polluting enterprises have Due to the impact of domestic environmental protection policies, development space is blocked, business orders are reduced, profits are constantly disappearing, and both domestic and foreign resources are used, and both domestic and international markets are adjusted in the governance structure or way of thinking. Going abroad to open up the international market has become a inevitable choice.

Rubber tires are one of the important pillar industries in Dongying City. Since no brands with international competitiveness have been cultivated at present, many manufacturing enterprises have become manufacturing factories of well-known brands, and other products have too low profit margins. At present, global marketing and advantageous resources are concentrated in the hands of entrepreneurs from developed countries. There are 67 rubber tire manufacturing enterprises above the scale of Dongying, ranking the city's largest export commodities for nine consecutive years. However, an effective marketing network has not yet been established and sales have been excessive. Depends on developed countries in Europe and America. Since last year, due to major difficulties in the "double opposition" of American tires, if similar problems arise again, it will make the development of tires companies with excess capacity even more worrying. "In the face of these problems, the tire industry must step up its efforts to 'go global' while upgrading the technological content of products, and transfer excess production capacity overseas," said Li Junfeng.

It is understood that most of the “One Belt and One Road” are emerging economies and developing countries, with a total population of about 4.4 billion and an economic aggregate of about 21 trillion US dollars, accounting for about 63% and 29% of the world respectively. “These countries are generally in an ascending period of economic development and have broad prospects for developing mutually beneficial cooperation. To seize this major opportunity, we will increase the level of Dongying’s opening to the outside world, enhance its international competitiveness, accelerate the optimization and upgrading of traditional industries, and attract foreign capital and high-tech talent. The significance of this aspect is very significant," said Chen Guangfeng, director of the Foreign Affairs Office of Dongying City.

High extroversion advantage into a powerful engine

“Going global has allowed the Group to expand its scale and our market share in Indonesia has risen to the top.” A person in charge of Victory Power Machinery Group of Shengli Oilfield introduced that the group is the largest professional manufacturer of gas engine engines in the country, in order to expand the market. The group boldly “goes out” and has built more than 20 power stations for major customers such as Indonesia’s National Power Group and Indonesia’s second-largest grain and oil company Jinguang Group, becoming a leader in distributed gas power generation in Indonesia.

A sound industrial foundation has become a strong support for Dongying's integration into the "Belt and Road" national strategy. There are 864 industrial enterprises above designated size in Dongying, which has grown to become the world’s largest newsprint production base, the country’s largest petroleum refining base, oil equipment manufacturing base, edible mushroom production base, and the province’s largest tire production base. Strategic emerging industries such as photovoltaics, automobiles and spare parts, wind power, electronic information and software outsourcing also achieved rapid development.

“Dongying has a high degree of industrial development, and contracts for the trade and engineering of petroleum equipment, gas-fired power generation, and chemical industries involve more than 100 countries and regions,” said Chen Guangfeng.

According to reports, Dongying has a number of companies including Kerui, Gaoyuan, Wanda, Xinda, Huatai, etc. that have opened up international markets, and some have invested and built factories abroad, some have contracted projects, contracted land, and some have established offices. Very good business performance. For example, Kerui Group has set up 57 overseas offices, several related countries in the “One Belt and One Road”, and established Indonesia and India branches, and is preparing to register for the Kerui Thailand branch; Yongyi Company has planted 300,000 mu in Laos. Rubber Park; Ogori invested 350 million US dollars in Indonesia to produce rubber tires... These companies have extensive experience in cooperation with foreign governments and big companies, and their strength in opening up international markets and participating in international competition has increased significantly.

At the same time, Dongying City's open access to resources is also becoming wider and wider. At present, Dongying has maintained a good cooperative relationship with international organizations such as the United Nations Industrial Development Organization, the United Nations Environment Programme, the World Energy City Partnership, the China-Arab Exchange Association, and overseas Chinese associations and overseas Chinese chambers of commerce. The number of friendly contacts is 42. It is a country associated with the “Belt and Road Initiative” and has extensive cooperation in the fields of resource and energy development, economy, trade, culture, education, etc. The advantages of participating in implementing the “One Belt and One Road” strategy are obvious and the conditions are good.

The government helps build a “4S shop” for the company

In July of this year, various products of Dongying City will be expected to enter Malaysia for sale. The reporter learned from the Foreign Affairs Office of Dongying City that the company will soon enter the 898 mall in Kuala Lumpur with a total exhibition area of ​​60,000 square meters. 898 Shopping Mall was organized by the Malaysian Chamber of Commerce in Malaysia. Under the matchmaking of the Foreign Affairs Office of Dongying City, the Chamber of Commerce successfully docked with more than 30 companies in Dongying City. Dongying Enterprises can be settled for free.

"The Malaysian Shandong Chamber of Commerce will provide a series of services for Dongying companies to conduct business visits, product sales, project cooperation, negotiation and other activities in Malaysia and Southeast Asian countries. When customers have the intention of cooperation, they can contact the Overseas Chinese Affairs Office of Malaysia through the Malaysian Shandong Chamber of Commerce. ” Chen Dong, general manager of Dongying Ailanshi Furniture Manufacturing Co., Ltd. told reporters.

It is an important measure for Dongying City to encourage enterprises to go out and participate in the “Belt and Road” national strategy. In addition, Dongying City has also made full use of the advantages of overseas Chinese resources to collect information on overseas Chinese communities. At present, a resource bank has been established covering the information of overseas major communities in the world, including the United States, Canada, Japan, and South Korea.

"In the face of major strategic opportunities, Dongying should adhere to the principle of combining the 'going out' with 'bringing in', adapting to local conditions and giving full play to its advantages, and exploring an area that is different from the central and western regions and different from the eastern coastal cities, with the characteristics of Dongying opening up. The development of new roads." Chen Guangfeng introduced, Dongying City, innovatively put forward the "2345" project, that is planning to organize the 20 county, district, development zone and department heads, 300 professional and technical personnel to overseas training; promote 400 Small and medium-sized enterprises go out to cooperate and invest in the industry; they absorb 500 companies to participate in foreign affairs.

The integration of the "Belt and Road" national strategy is a long-term task. The next step will be Dongying City's establishment of a "go global" information service platform. Establish a project information collection mechanism, excavate, sort out and integrate overseas project information resources acquired through reliable channels, and regularly release it to enterprises. According to the overseas market conditions, targeted organizations are organized to carry out overseas propaganda activities to increase the company’s visibility abroad. And explore the establishment of "going out" financing service platform for the company "going out" to do a good job of financial services, and expand the financing channels.

At the same time, the city has further established and improved overseas risk information collection and distribution platforms and overseas risk emergency response mechanisms to create a quick and reliable security platform for “going global” enterprises.

Industries & Applications

Coating Additives, Textile Dyes, Plastics Pigment

Dynasty Chemicals (NingBo) Co., Ltd. , https://www.dychemco.com