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YOUR RELIABLE PARTNER S INOMACH, which bucked the global trend of the depressed economy in 2014, will set sail again in the “New Normal” state of China’s economy. At the Group’s work conference in the beginning of the year, President Ren Hongbin spread SINOMACH’s development blue- print to the outside world and put forward the international development goal of “rebuilding a new SINOMACH over- seas”. What is it? Viewing globally, the overseas market rate of contribution of GE, Samsung and many other trans- national enterprises has all exceeded 50%. Comparatively, SINOMACH has still much to improve. On this account, Ren put forward the idea of building a new SINOMACH abroad: to simultaneously move forward in both the do- mestic and foreign markets in the future, with an equal rate of contribution from overseas to domestic operations and keep up with the successful development mode of well- known transnational enterprises. Looking back at the development history, SINOMACH had successfully bucked the trend during the financial crisis and achieved the development miracle of “rebuilding a new SINOMACH” in 2007-2009, doubling sales revenueprofit and other main business indicators over the years before 2007. The decision “to build a new SINOMACH overseas” is just a strategic choice by the Group to realize a leap-forward development and advance into a first-class transnational enterprise. But how? On one hand, President Ren pointed out, we must seize the chance, take the policy opportunity at present and secure the market opportunity to improve the depth, breadth and efficiency of the international market layout. On the other hand, we should pioneer the “going global” pattern; enterprises closely coordinate and actively cooperate with each other and form industrial alliances with the upstream and downstream firms of the industrial chain outside the Group to “go global” together. At the same time, we should also prevent international business risks and fulfill social responsibilities well while going global. “This is a long-term development goal”, for which Ren hasn’t specified a timetable. However, as he said, no matter how long it will take, it will bring determination and direction for internationalization, and lead people of SINOMACH to succeed with perseverance. Rebuild a New SINOMACH Overseas SINOMACH VOICE 03

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YOUR RELIABLE PARTNER

SINOMACH, which bucked the global trend of the

depressed economy in 2014, will set sail again in the

“New Normal” state of China’s economy. At the Group’s

work conference in the beginning of the year, President

Ren Hongbin spread SINOMACH’s development blue-

print to the outside world and put forward the international

development goal of “rebuilding a new SINOMACH over-

seas”.

What is it? Viewing globally, the overseas market

rate of contribution of GE, Samsung and many other trans-

national enterprises has all exceeded 50%. Comparatively,

SINOMACH has still much to improve. On this account,

Ren put forward the idea of building a new SINOMACH

abroad: to simultaneously move forward in both the do-

mestic and foreign markets in the future, with an equal rate

of contribution from overseas to domestic operations and

keep up with the successful development mode of well-

known transnational enterprises.

Looking back a t the deve lopment h i s to ry,

SINOMACH had successfully bucked the trend during the

financial crisis and achieved the development miracle of

“rebuilding a new SINOMACH” in 2007-2009, doubling

sales revenue,profit and other main business indicators

over the years before 2007. The decision “to build a new

SINOMACH overseas” is just a strategic choice by the

Group to realize a leap-forward development and advance

into a first-class transnational enterprise.

But how? On one hand, President Ren pointed out,

we must seize the chance, take the policy opportunity at

present and secure the market opportunity to improve the

depth, breadth and efficiency of the international market

layout. On the other hand, we should pioneer the “going

global” pattern; enterprises closely coordinate and actively

cooperate with each other and form industrial alliances

with the upstream and downstream firms of the industrial

chain outside the Group to “go global” together. At the

same time, we should also prevent international business

risks and fulfill social responsibilities well while going

global.

“This is a long-term development goal”, for which

Ren hasn’t specified a timetable. However, as he said, no

matter how long it will take, it will bring determination

and direction for internationalization, and lead people of

SINOMACH to succeed with perseverance.

Rebuild a New SINOMACH Overseas

SINOMACH VOICE

03

Contents

Published by:

China National Machinery Industry Corporation

Website: www.sinomach.com.cn

Address: No.3 Danling Street, Haidian District, Beijing,

China 100080

Tel: (86-10) 8268 8888

Fax: (86-10) 8268 8811

Members of Editorial Board

Editor-in-Chief: Shi Ke

Deputy Editor-in-Chief: Xie Biao

Chief Editor: Su Weike

Executive Chief Editor: Chen Xingxiang

Editors: Zhang Shaochen

Editorial Department

Tel: (86-10) 82606725, 82688727

Fax: (86-10) 82688724

Design: Beijing Gupeng Graphic Design Inc.

E-mail: [email protected]

Internal magazine for free subscription and all rights re-

served. Written permission is required for the reprint of

any part or the whole of the content in the magazine.

Part of the picture source: CNSphoto, Getty Images

06

18

R e n H o n g b i n : B l u e p r i n t f o r SINOMACH’s Future Development

SINOMACH Achieves Another Re-cord High in Business Performance in 2014

Turnover of China’s Overseas Pro-ject Contracting Reaches USD 142.1 Billion in 2014

China’s Total Import and Export Value Reaches RMB 26.43 Trillion in 2014

Three Projects of SINOMACH Win the National Science & Technology Award in 2014

Multiple Sides Jointly Push Forward for the Construction of the Chi-na-Belarus Industrial Park

China National Erzhong Group Successfully Develops the First CAP1400 Nuclear Power Shaft Forging in China

FOCUS POINTS

CMEC Signs an Equipment Supply and Installation Contract Worth RMB 900 Million for a Thailand Broadband Network Construction

PROJECT PROGRESS

Publish

R&D and ManufactureProject ContractingTrade and Services

Three Main Business

Ranked 278th among Fortune Global 500Ranked 1st among China’s Top 100 Enterprises in Machinery IndustryRanked 25th among Top 250 International Contrac-torsRanked 72nd among Top 225 International Design FirmsRanked 17th among China’s Top 500 Foreign Trade EnterprisesRated as Class A in central enterprise performance appraisal

Market Position

Project

China IPPR Wins the Bid for Chi-na-Aided Zambia Levy Mwanawasa Hospital Project

CPMIC’s Affiliate Signs an EPC Contract for a South African Trans-former Substation Project

Kick-off Ceremony for Sri Lanka Attanagalla Waterworks Project Held

Electromechanical Installation EPC Project for the Tajikistan Youth Rec-reation Center Completed

First Megawatt Photovoltaic Power Station in Pakistan Connected to the Grid

Ribbon-cutting Ceremony for An-gola Transformer Substation Project Held

China-Aided Surgery Building and Ward of Victoria Hospital in Mauri-tius Completed

Combined Cycle Units of Bithia Power Station Project in Venezuela Successfully Connected to the Grid

NDJ Transformer Substation of the Ring Network and Low and Medi-um Voltage Distribution Network Project in Ndjamena Successfully Charged with Electricity

Ribbon-cutting Ceremony for Sancti Spiritus Transformer Substation Pro-ject, Cuba, Successfully Held

Boiler Lighting Up and Grid Con-nection Succeed on the First Try for Serbia Power Plant Project

CMEC and CSR Signs a Cooper-ation Agreement for the Argentine Railway Reconstruction Project

Amugulang Heating Station Project in Mongolia Wins the Award for the Best Energy Infrastructure Project

26

28

TRADE AND SERVICES

SPECIAL REPORT

SINOMACH Automobile and Ford China Renew a Domestic Exclusive Distribution Contract for Imported Ford Cars of All Series in the Com-ing Four Years

CMEC Signs a Memorandum with GE for Strategic Cooperation in Af-rica

SUMEC Textile and Light Industry Wins the 2014 National Champion-ship of Export to EU

Corn Imported by CCEC from Ukraine First Arrives in Chiwan Port of Shenzhen

Understanding One Belt and One Road

Turkey EREN Supercritical Coal-Fired Power Plant Achieved Another Record High in Operational Perfor-mance in 2014

Grand Opening Ceremony for My-anmar Doyka Hydropower Station Project Held

07

FOCUS POINTS PROJECT PROGRESS TRADE AND SERVICES SPECIAL REPORT

Ren Hongbin: Blueprint for SINOMACH’s Future Development

The Groups’ profit will exceed RMB 10 billion and shall

target higher goals: the integration of industry with finance

will be greatly strengthened; Degree of contribution of the

financial capital and emerging industrial capital will be greatly

improved; the industrial structure will be adjusted and opti-

mized; the Group’s profit contribution of manufacture, engi-

neering, trade and capital will gradually become equal and all

business units will promote mutually and develop equally.

SCALE AND STRUCTURE

Domestic and overseas resource structures and market

layouts will advance side by side. The strategic achieve-

ments of “going global” will be countless and one more new

SINOMACH will be created overseas.

MARKET LAYOUT

Manufacture

Engineering

Trade

Capital

RMB 500 billion

RMB 20-30 billion

ASSET QUALITY

ASSET SECURITIZATION

Main operating assets enter listed companies to strengthen the liquidity of assets

Entry and exit of capital operation will be actualized,

resource allocation will be continuously optimized and unprof-

itable enterprises be eliminated.

The parent company has grown rapidly with the help of

capital and is getting the business sector to go public, putting

90 percent of its assets in stocks and bonds.

SOFT POWER INDEX

To build a Talent Team which will achieve a reasonable

structure and massively improve professionalization, market-

ization, specialization and internationalization; the brand’s

reputation and influence will be remarkably enhanced; to

become an international enterprise group with an outstanding

creativity value, that is internationally competitive and have a

sustainable development capacity; to adhere to the people-ori-

ented principle, boost staff value, promote the joint growth of

employees and the enterprises; the harmonious unification of

enterprise development and the exemplary fulfillment of social

responsibilities to realize sustainable development.

Optimize resource allo-cation in accordance with market rules

Withdraw from non-core and non-competitiveness business-es reasonably and orderly

Strengthen core competitiveness and eliminate unprofitable enterprises

Optimize resource allocation Withdraw fromunprofitable enterprises

Talent team

Brand image

Staff life

Stakeholder

Talent structureTalent poolTalent paltform

Industry leaderSocial popularityWorld class

HarmonyDignityDevelopment

Co-existenceShareWin-win

Listed company

Global Beijing

FOCUS POINTS

06

08 09

PROJECT PROGRESS TRADE AND SERVICES SPECIAL REPORT

In 2014, the world economy witnessed a hard recovery and the domestic economy experienced an increas-ingly large pressure. Focusing on the top priority of development, SINOMACH over fulfilled the business tasks despite the unfavorable external situation and gained an operating revenue of RMB 249.15 billion, an increase of 2.8% year on year; and a total profit of RMB 6.07 billion, an increase of 26.7% year on year.

SINOMACH Achieves Another Record High in Business Performance in 2014

Trade: Export-Import Volume

Scientific and Technological Innovation:

From January to December, the total export-import volume of SINOMACH increased by 33.36% year on year to USD 12.4

billion, with an export volume increase of 34.6% year on year to USD 7.64 billion, and an import volume increase of 33.1% year

on year to USD 4.75 billion.

Overall: Business Volume, Profit, New Contracts

Overseas Projects

In 2014, the Group gained an operating revenue of RMB 249.15 billion, (a year-on-year increase of 2.8%); a total profit 6.07

billion yuan, (a year-on-year increase of 26.7%), a newly-signed contract volume of $53.6 billion, (a year-on-year increase of

1.9%); and a transaction volume of $4.5 billion, (a year-on-year increase of 4.6%).

Number of fulfilled overseas projects: 28Number of newly-signed overseas projects: 53

the Group revenue

RMB

249.15 billion

+ 2.8%

export-import volume

$

12.4billion

+ 33.36%

total profit

RMB

6.07billion

+ 26.7%

export volume

$

7.46billion

+ 34.6%

newly-signed contract import volume

$4.75billion

+ 33.1%

transaction

In 2014, the Group continued with the deepening work of scientific and technical innovation and won 325 provincial and

national level “Outstanding Achievement” awards of all kinds. Including 90 “Science and Technology” awards and 149 “Survey

and Design Consultation” awards. 1446 patents were applied for, including 555 patents for invention; 1055 patents were author-

ized, including 215 patents for invention. It hosted and joined in the formulation and revision of 657 standards, including 222

national standards. As well as 108 newly added upgrade qualifications. China Construction won “General contractor special grade

of building construction engineering”, The China Academy of Electronic Appliance won the highest honor “China Standards In-

novation Contribution Award and Organization Award”.

Standard and Awards

Project Name Serialnumber Executing Units

Saravan-Sekong (Wangshang Village) 500kV Power Transmission and Transformation Project in Laos

Nabong-Nam Ngum1-Hinheup 230kV Power Trans-mission and Transformation Project in Laos

Broadband Network Construction Project in Thailand

EPC Project Phase III and IV for Rural Power Grid Expansion in Cambodia

Lampoon Hydropower Station Speed Controller, Pressure Regulating Valve and Accessory Equipment project in Laos

BATA-MONGOMO Highway Power Supply Project in Equatorial Guinea

China National Heavy Machin-ery Corporation

China National Heavy Machin-ery Corporation

China National Heavy Machin-ery Corporation

China Machinery Engineering Corporation

China Machinery Engineering Corporation

Tianjin Research Institute of Electric Science Co. Ltd.

1

2

3

4

5

6 outstanding achievement upgrade qualificationspatents formulation and revision standards

Project name Serialnumber Executing units

Grodno Waste Sorting Plant Project with Annual Disposal Capacity of 120,000 tons in Belarus

Saravan-Sekong (Wangshang Village) 500kV Power Transmission and Transformation Project in Laos

EPC Project Phase II for Rural Power Grid Expan-sion in Cambodia

Dhaka Water Supply Project in Bangladesh

China Machinery Engineering Corporation

China National Heavy Machin-ery Corporation

China National Heavy Machin-ery Corporation

China National General Machin-ery Engineering Corporation

9

10

7

8

Top ten newly-signed overseas projects:

science and tech-nology

others+90+86

survey and design consultation

+149

+222+435national standards

others+1055patents were authorized

215patents for invention

340patents for invention

+108upgrade qualifications

+ 1.9%$

53.6billion

+ 4.6%$

4.5billion

FOCUS POINTS FOCUS POINTS

10 11

PROJECT PROGRESS TRADE AND SERVICES SPECIAL REPORT

Three Projects of SINOMACH Win the National Science & Technology Award in 2014

In 2014, the turnover of China’s

overseas project contracting reached

USD 142.11 billion, representing a 3.8%

year-on-year increase.

At the news conference held by

China International Contractors Asso-

ciation on February 28, Zhang Xiang,

the spokesman of the association, stated

that China’s overseas project contracting

rose steadily, with the amount of new

contracts totaling USD 191.71 billion,

representing a year-on-year increase of

11.7%.

“China enterprises consecutive-

ly signed important projects in North

America, Latin America, Europe and

other regions, symbolizing distinct

achievements in market development”,

Zhang said. For example, China Con-

struction won the bid for the US Pulaski

Viaduct Project and Busan Haeundae

Complex in South Korea. Gezhouba

Group won the bid for the Argentina

hydroelectric project. The new markets

added new power to business expan-

sion.

According to the statistics, in

2014, Chinese foreign contracting

enterprises handled 664 projects with

newly-signed contracts amounting to

over USD 50 million including 365

worth over USD 0.1 billion and 25 huge

projects valued over USD 1 billion, in-

creasing by 16 year on year.

Zhang said, China equipment

and China standard accomplished new

achievements in “going global”. Taking

highways as an example, the first over-

seas highway built by Chinese enterpris-

es—Ankara-Istanbul Railway in Turkey

was completed and opened to traffic,

making the way for electromechanical

devices, railway communications, etc.

to overseas markets. The Kenya Mom-

basa-Nairobi railway implemented by

CRBC (China Road and Bridge Com-

pany), fully applied China’s technology

standards and took the key step of “go-

ing global” for “China Standard”.

Zhang said, 2015 is an “opportun-

istic year” for Chinese enterprises to “go

global”. EU has unveiled its 26 billion

Euro “European traffic network” plan;

needs for infrastructure construction in

Africa, Latin America and Asia-Pacific

regions were inspired by the contradic-

tion between urbanization and backward

infrastructure. With the acceleration of

regional economic integration, transna-

tional and trans-regional projects have

continued to increase.

Turnover of China’s Overseas Project Contracting Reaches USD 142.1 Billion in 2014

China’s Total Import and Export Value Reaches RMB 26.43 Trillion in 2014

According to customs statistics,

China’s total import and export value

reached RMB 26.43 trillion in 2014,

2.3% higher than that in 2013, among

which, the export value increased by

4.9% to RMB 14.39 trillion, import val-

ue fell by 0.6% to RMB 12.04 trillion

and trade surplus expanded by 45.9%

to RMB 2.35 trillion. Priced by the

USD, China’s import-export, export and

import values increased by 3.4%, 6.1%

and 0.4% respectively in 2014.

On January 9, at the National Science & Technology Award meeting, one SINOMACH project won the first prize and another two won the second prize, achieving the best results in recent years. The National Science and Technology Award is the highest scientific award in China.

Design, manufacture and maintenance of important pressure vessels in extreme conditions

Main undertaking unit: China National Machinery Industry Corporation

Project profile: Industrial engineering vibration control is a multi-professional comprehensive technology. It is based

on building engineering that provides reliable vibration environment guarantees for the normal operation of the equip-

ment. It does so by taking control over the vibration of a complicated system that is composed of the foundation, archi-

tectural structure, industrial equipment, etc. The research resulted in a remarkable improvement in China’s technical level

of industrial engineering vibration control and has been applied in the aerospace, defense industry, electronic information,

electric power engineering, mechanical manufacture and other fields. The project motivated the engineering and indus-

trialization of scientific and technological achievements and brought direct economic benefits of RMB 4.29 billion and

indirect economic benefits of nearly RMB 10 billion (according to incomplete statistics) in the past three years.

Design, manufacture and maintenance of important pressure vessels under extreme conditions

Main undertaking unit: Hefei General Machinery Research Institute

Project profile: Aimed at the severe challenges confronted with the traditional design, manufacture and maintenance

technology for pressure-bearing special equipment (for example, pressure vessels), the project achieved many innovations

and breakthroughs after nearly ten years of tackling the key problems. Its achievements have been successfully applied in

the petrochemical industry, coal-to-chemicals industry, gas, chemical fertilizer, military projects and other fields, breaking

the technical monopoly of developed countries. The project guarantees the successful construction of major national pro-

jects and provides a long-term safeguard for China’s large industrial plants and important pressure vessels of the defense

industry, achieving significant social and economic benefits.

Brief introduction of the principal: Chen Xuedong, born in 1964, a Doctor of Engineering, professor-level senior

engineer and researcher, serves as the Vice Chief Engineer of SINOMACH and President of Hefei General Machinery

Research Institute and holds a concurrent post of Chief of the National Technical Research Center on Safety Engineering

of Pressure Vessels and Pipelines. Mr. Chen is mainly in charge of and has achieved significant scientific and technolog-

ical results in the research and application of safety engineering technologies for pressure vessels and pipelines, design

and manufacture of major pressure-bearing equipment under extreme conditions, risk evaluation and control of long-term

operation of large petrochemical equipment, and diagnosis and guarantee of pressure vessels and pipeline safety in harsh

environment.

First prize:

Second prize:

FOCUS POINTS FOCUS POINTS

12 13

PROJECT PROGRESS TRADE AND SERVICES SPECIAL REPORT

Creation of key technology and equipment for the cold-pressed peanut oil extraction and high-value utilization of cake

and residue protein.

Participating unit: Chinese Academy of Agricultural Mechanization Sciences

Project profile: Aimed at problems such as the serious loss of nutrition, high degree of protein degeneration, low uti-

lization rate, low added value, and dark color of hot-pressed peanut oil, the project studied and developed a series of key

technologies and equipment for pressing and fabrication and achieved industrialization. Over the past three years, the

achievement of the project has brought a total sales revenue of RMB 10.439 billion, accumulatively generated newly

increased profits and tax of RMB 572 million, effectively improved agriculture efficiency, and made farmers richer, thus

achieving significant social and economic benefits. In addition, 27 articles have been published, wherein, five have been

collected by SCI, three granted national invention patents, and one used to formulate the agriculture standards.

Xu Jian attends the National Science and Technology Awards Conference

President Xi shakes hands with Chen Xuedong

Brief introduction of the principal: Xu Jian, born in 1958, professor-level senior engineer, serves as the General

Manager of China National Machinery Industry Corporation (SINOMACH) and holds concurrent posts of Chief En-

gineer and doctoral tutor. Mr. Xu is also a middle-aged expert with outstanding contributions and one of the national

experts of first and second level out of “Millions of Talent Project”, who enjoy a special allowance of the State Council

and are directly contacted by the Organization Department of the CPC Central Committee. Mr. Xu has engaged in and

accomplished outstanding achievements in the research of architectural structure design, building vibration, building and

equipment vibration isolation, industrial building seismic resistance, masonry structure and seismic resistance and rein-

forcement, and other fields.

Multiple Sides Jointly Push Forward for the Construction of the China-Belarus Industrial Park

“The China-Belarus Industrial Park has attracted the

great attention of high level profiles from both sides.

Both sides have established a work group to coordinate and

push forward for construction development and investment

promotion to work solidly from the government level.” At the

promotion conference of the Belarus Investment Environment

and China-Belarus Industrial Park on December 23, Huang

Danhua, Vice Director of SASAC, said, “Leaders of China

and Belarus have paid great attention to the industrial park

project, hoping SINOMACH amasses strength of all sides and

makes it a quality project of cooperation between both sides”.

Zhang Xiangchen, assistant of Minister of Commerce, pointed

China-BelarusIndustrial Park

out, the Ministry of Commerce will jointly push forward the

construction of the industrial park with relevant departments,

enterprises and financial organizations from both sides.

Belarusian Minister of Economy Nickolay Snopkov, has

pointed out, the industrial park will be able to provide pref-

erential tax policies, simplify the approval procedures, and

offer a “one-stop service”. Enterprises that enter the park are

ensured the tax preference of “ten exemptions and ten halves”

in the form of a “President’s order” by Belarus with a longest

land-use period of 99 years, creating the most relaxed invest-

ment environment for global investors.

Introduction:The China-Belarus Industrial Park, jointly invested and built by China National Ma-

chinery Industry Corporation (SINOMACH) and its affiliate China CAMC Engineering

Co., Ltd. Harbin Investment Group, the Government of Minsk Region (City) and other

Chinese and Belarus stakeholders, is an overseas economic and trade cooperation

zone with the largest development area, highest cooperative level, and most favora-

ble policy conditions at present.

Second prize:

FOCUS POINTS FOCUS POINTS

14 15

London Berlin 1050 km

Vienna 1 hour 50 minutes

Odessa 1040km

720 km1 hour and 20 minutes

Beijing nine hours China-BelarusIndustrial Park

Klein's da Moscow

496 km

3 hours

Beijing

The Government Has Attached Great Im-portance and Established a Coordination Working Team

The building of the China-Belarus Park, is the most

important economic and trade cooperation project to deepen

the comprehensive strategic partnership between both sides

and is a core connecting point of the “economic belt of the

silk road”. It has gained great importance from leaders and

governments of both sides. By passing on the industrial chain

onto the continents of Europe and Asia and putting up a clus-

ter-type investment development platform, the project has

become the first choice for overseas investments and business

promotions.

In July 2013, President Xi Jinping and Lukashenko,

Zhang Xiangchen stressed that there is a great need for

industrial structuring of Belarus especially in the recent years

and many China-invested enterprises entered markets of Bela-

rus one after another and have already gained ground. Chinese

enterprises can fully leverage the comprehensive advantages

Taking Advantages of Collaboration and In-novating the Pattern of “Going Global”

President of Belarus, declared the building of the comprehen-

sive strategic partnership to further improve the level of coop-

eration between both sides.

In the last ten days of September, 2014, Zhang Gaoli,

State Council Vice Premier paid a visit to Belarus. During his

visit, he concluded an important consensus on quickening the

construction of the China-Belarus Industrial Park with leaders

of Belarus. Both sides agreed that China’s Ministry of Com-

merce and Belarus’s Ministry of Economy would jointly take

the lead to set up a coordination working team for the park,

and Ministry of Commerce would jointly push forward the

building of the industrial park together with relevant depart-

ments, enterprises and financing institutions.

At present, the investors of the industrial park are con-

stantly optimizing management systems and mechanisms with

in equipment, technology, fund and trade, continuously enrich

the cooperative approaches and broaden the cooperative field.

The Park, jointly founded by SINOMACH, its subordinate

enterprises and the Belarus side, is not only beneficial to en-

hance the industrial cooperation between both sides, improve

economic and trade relationship level but also provide a good

platform for the enterprises of both countries to jointly explore

the uniform market of the Euro-Asia economic alliance.

Ren Hongbing, President of SINOMACH said, as an

enterprise among the Top-500 in the world and a company

which spanned out at the earliest time, SINOMACH has

a close relationship with the Belarus market. The projects

launched by the Group have gained support from the Belarus

government and people. He said, “Belarus is strategically

located, and is an important connecting point of in the China

Silk Road; SINOMACH will go all out to make the park “a

new and high-tech industrial park of tomorrow”.

the joint efforts of both sides. Relevant supporting polices are

gradually being put in place and the building of infrastructure

will be fully launched. Zhang Xiangchen said, the China-Be-

larus Industrial Park has exerted a certain influence on the

enterprise field of both sides and will be equipped with vast

potential for future developments.

Progress of the China-Belarus Industrial Park

Since breaking ground in June, 2014, the starting point

of Phase I of the China-Belarus Industrial Park, the municipal

infrastructure projects are now under way. So far, 80% of the

office areas and living quarters of the temporary construc-

tion facility has already been completed, which will open on

PROJECT PROGRESS TRADE AND SERVICES SPECIAL REPORTFOCUS POINTS FOCUS POINTS

16 17

PROJECT PROGRESS TRADE AND SERVICES SPECIAL REPORT

China National Erzhong Group Successfully Develops the First CAP1400 Nuclear Power Shaft Forging in China

On December 16, the first inter-

national demonstration of the

core component CAP1400 pressurized

water nuclear power reactor spindle

unit project was successfully developed

by China National Erzhong Group Co.

Ltd, with every quality index meeting

the standard requirements and no NCR

(non-conformance terms).

The nuclear power spindle is one

of the main forged pieces of CAP1400

pressurized water reactor nuclear pow-

er unit of Shidao Bay of Rongcheng,

Shandong, and the largest of all pieces,

which is made of 650 tons of steel ingot.

Its technological manufacturing difficul-

ty has reached the ultimate standard of

similar products in the world.

Since starting research and devel-

opment of China’s first CAP1400 nucle-

ar power unit shaft in August 2013, Chi-

na National Erzhong Group Co., Ltd.

(China Erzhong for short), under the

supervision of supervisors from State

Nuclear Power Demonstration Plant

CAP1400 pressurized water re-actor (PWR) nuclear power plant is a large advanced passive PWR nuclear power plant. Introduced by China, it possess Chinese proprietary intellectual property rights and a larger rate of power achieved through re-innovation and development of the founda-tion of digestion, absorption and full mastery of the third genera-tion of advanced nuclear power AP1000 passive technology. It is characterized by a long lifespan, high technological require-ments, large size and scale, etc. The completion of this project demonstrates and symbolizes China’s self-dependence in the innovation of third generation nuclear power technology and an indispensable experimental and verification platform for the innovative development of third generation nuclear power tech-nology.

March 20, as planned. The main builders will arrive on March

30th. 23 engineering vans and 50 dump trucks have all been

set up.

Covering an area of 91.5 square kilometers, the Chi-

na-Belarus Industrial Park lies 25 kilometers east of Minsk,

the capital of Belarus. It is adjacent to Minsk International

Airport. The Park possesses a superior geographical position

with easy access and quick transportation. The park will focus

on the development of Electronic information, fine chemical

engineering, biological medicine, high-end manufacture,

logistics storage and other industries; supported by the devel-

opment of commercial and residential projects, to build an

international new town integrating ecology, livability, business

promotion, vigor and innovation.

Belarus is a member of the Russia-Belarus-Kazakhstan

tariff alliance, uniform economic space and future member

of Euro-Asia economic alliance. Therefore, enterprises in the

Park not only can sell products exempt from customs duty to

Russia and Kazakhstan but also enter the markets of the other

member states; the commonwealth of the independent states

and EU whom possess a unique market scale and development

potential.

Co., Ltd. (SNPDP), State Nuclear Pow-

er Engineering Company (SNPEC), and

Shandong Electric Power Engineering

Consulting Institute Co., Ltd. (SDEPCI),

has formulated strict and scientific rules

and regulations, specifically improved

staff technical and operational skills,

worked with great care and innovated in

key processes such as smelting, forging,

flaw detection, and inspection to ensure

successful manufacturing on the first

try. After one and a half years, China

Erzhong solved numerous complicated

problems, obtained multiple patents,

and successfully delivered high-quality

products as scheduled.

The building of the first CAP1400

nuclear power spindle has further

strengthened the high manufacturing

capacity of China National Erzhong

Group Co. Ltd, which has become the

biggest supplier of super-huge type

nuclear power half-speed rotors with

a leading level of product quality and

manufacturing capacity in the country.

01. On January 20, 2014, Belarus Premier Mikhail Myasnikovich visited SINOMACH.

02. On December 23, 2014, SINOMACH held the first large China-Bela-rus Industrial Park promotion conference.

04. On June 19, 2014, both Chinese and Belarus sides held the ground-breaking ceremony for the China-Belarus Industrial Park and talks.

03. SINOMACH Heavy Industry Corporation’s dump truck dedicated to park construction was ready to unload cargoes.

05. Temporary living quarters of the industrial park that is underway.

01 020305

04

FOCUS POINTSFOCUS POINTS

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PROJECT PROGRESSFOCUS POINTS TRADE AND SERVICES SPECIAL REPORT

China IPPR Wins the Bid for China-Aided Zambia Levy Mwanawasa Hospital ProjectRecently, China IPPR won the bid for Zambia’s Levy Mwanawasa Hospital construction aid project, aiming

at improving the medical level of Zambia and creating a good work environment for Chinese medical teams. It also

aims to realize the effective connection of hardware and software for projects built by China as aid.

The construction site of the project lies to the east of China-aided Zambia’s Lusaka General Hospital, east of Lusa-

ka, the capital of Zambia. The project includes the construction of a new hospital and renovation of the existing hospital

with a site area of 6.4 hectare. As well as a total of 850 beds, 42500 square meters of building area and 0.538 billion Yuan

of total investment.

CPMIC’s Affiliate Signs an EPC Contract fora South African Transformer Substation Project

On March 6, China Sinogy Electric Engineering Co., Ltd. (CSEEC), an affiliate of China Perfect Machinery

Industry Co., Ltd. (CPMIC) officially signed an EPC contract for South Africa DUMA 132 kV/40 MVA transformer

substation project, which lies in Lydenburg in Thaba Chweu Municipality of Ehlanzeni. Invested by investors and the

Thaba Chweu government in the form of PPP, the project will mainly supply electricity for Lydenburg and provide

power support for new development zones, which will positively promote the economic development of the region.

CommencementKick-off Ceremony for Sri Lanka AttanagallaWaterworks Project Held

On December 5, the largest integrated water supply project – Attanagalla waterworks, contracted to be built

by CMEC, kicked off officially. Attanagalla waterworks lies in the Western Province, about 40 kilometers north of

Colombo. The contract value of the project is about USD 230 million and the overall construction period is 3 years,

which will cover an area of 397 square kilometers.

After completion, the waterworks will provide clean water for 600,000 people of 42 villages, which is of sig-

nificant social value for reducing local residents’ morbidity and improving their health. Moreover, the project will

offer over 1000 jobs for local people and thus will be a major project for the benefit of the people.

CompletionElectromechanical Installation EPC Project forthe Tajikistan Youth Recreation Center Completed

Recently, the Tajikistan Youth Recreation Center Project undertaken by China IPPR International Engineering

Corporation was completed and handed over in accordance with the agreements in the EPC contract. Employer

representatives and supervising engineers signed the completion acceptance report, indicating that China IPPR’s

electromechanical installation EPC project for the Tajikistan Youth Recreation Center was completed.

Located in the center of Duschanbe, capital of Tajikistan, the project is one of Tajikistan's key projects with a

building area of 30,000 square meters, which will serve as the state guesthouse. In July 2014, the project was suc-

cessfully put into operation, and ventilation and air-conditioning, plumbing, intelligent lighting and weak current

system were brought into service. In August 2014, the entire project was preliminarily ready for operation. On Sep-

tember 11, it was used as the venue for the summit of the Shanghai Cooperation Organization. When President Xi

Jinping visited Tajikistan, the state reception banquet was held in the center. The project in use has erected a monu-

ment and won the praise of insiders, which has laid a good foundation for China IPPR to continue with its develop-

ment of the markets in Tajikistan and the surrounding countries.

On December 22, CMEC signed an equipment supply and installation contract for a Thailand broadband net-

work construction project with All-Win Communication of Thailand. With the completion of this project, 0.6 mil-

lion families will be provided with wired broadband access and 2.5 million families with wireless broadband access.

CMEC, as the contractor of equipment supply and installation, will be in charge of the design for machine rooms,

equipment supply and installation, debugging, training and quality guarantee and other work with a contract value

of about USD 120 million. The contract came into effect from the time it was concluded and signed, according to

which, the construction period of the project is about 12 months.

CMEC Signs an Equipment Supply and Installation Contract Worth USD 120 Million for a Thailand Broadband Network Construction Project

Newly signed

PROJECT PROGRESS

21

FOCUS POINTS TRADE AND SERVICES SPECIAL REPORT

China-Aided Surgery Building and Ward of Victoria Hospital in Mauritius Completed

Recently, the China-aided surgery and ward buildings of Victoria Hospital in Mauritius were examined and ac-

cepted. The design task for the project, covering schemes to construction drawings, was undertaken by China IPPR

International Engineering Corporation. Covering a total building area of 8193 square meters, the project mainly in-

cludes emergency operating rooms, level II operation rooms, ICU, IDU, 120-bed wards and relevant supporting fa-

cilities, aiming to provide high-standard medical and health facilities and improve the health and medical conditions

of Mauritius.

After the Chinese government successfully handed over the project, Mauritius was very satisfied with the pro-

ject quality and the effect of the completed project. The completed surgical operation building will greatly improve

the environment, facilities, and medical level of Victoria Hospital, which, at the same time, will become an impor-

tant symbol of the China-Mauritius friendship.

Ribbon-cutting Ceremony for Angola Transformer Substation Project Held

On December 29, the completion ceremony for the Angola Cacuaco VILA60/15kV Substation Project built by

CMEC was held.

Cacuaco 60kV substation is a representative substation of Luanda urban network renovation program series.

It lies in Cacuaco district of Luanda, where there is an increasingly large number of old and new residents but inad-

equate power supply, due to the inability of the substation to satisfy the increasing power demand. The distribution

network emergency power supply project in Cacuaco district, as an important political project at the end of 2014,

was a challenging task with a short construction period. Under such circumstances, CMEC worked overtime and

successfully finished the project in only one month to meet requirements of the Angola government and the em-

ployer. This project has greatly improved the local electricity utilization environment, solved the problem of power

shortage and improved the power coverage rate, thus receiving unanimous praise from the Angola government, em-

ployers, supervisors and people from all circles.

First Megawatt Photovoltaic Power Station in Pakistan Connected to the Grid

Recently, the 1.23MW ground photovoltaic power station in Pakistan’s Punjab province was successfully

switched on and connected to the gird. The station is the first megawatt photovoltaic power station since the found-

ing of the country. As the general contractor, SUMEC Group Corporation successfully actualized the “going global”

of Chinese equipment. Covering an area of 16,000 square meters, the station lies in Pakistan’s Punjab province,

where there is abundant sunshine, making the annual generating capacity reach 1.745 million kWh. The station not

only satisfies the daily need for electricity of the residents in the 110 villages with additional power demand of some

supplementary electric systems, but also reduces carbon emission of 1580 tons every year.

The successful connection of this MW photovoltaic power station to the grid has earned SUMEC full recogni-

tion again for its general contracting capability, especially in the field of new energy, from overseas markets.

On January 29, the last NDJ transformer substation and the 90 kV transmission line connected to the substa-

tion under the CMEC’s 90 kV ring network and low and medium voltage distribution network project in Ndjamena,

Chad, were smoothly electrified. The project employer highly praised the work of CMEC staff. Till then, all the four

transformer substations and relevant 90 kV transmission lines of the project have all been completed.

NDJ Transformer Substation of the Ring Network and Low and Medium Voltage Distri-bution Network Project in Ndjamena Successfully Charged with Electricity

At 11:58 a.m., January 26 2015, Venezuelan local time, the combined cycle units of Bithia Power Station Pro-

ject undertaken by China CAMC Engineering Co., Ltd. (CAMCE), was successfully connected to the grid.

Bithia Power Station is the first level-F, 60 Hz large-scale gas turbine combined-cycle power station project

undertaken by a Chinese company overseas. The whole set of the combined cycle units involves the coordination

of numerous auxiliary systems with strict technological requirements, high systematic complexity, and great de-

bugging difficulties. It has a very strict demand for debugging and safe operation under the steam-heated working

condition.

Combined Cycle Units of Bithia Power Station Project in Venezuela Successfully Con-nected to the Grid

PROJECT PROGRESSPROJECT PROGRESS

20

22 23

FOCUS POINTS TRADE AND SERVICES SPECIAL REPORT

Boiler Lighting Up and Grid Connection Succeed onthe First Try for Serbia Power Plant Project

On December 29, the B1 boiler of the Serbia KOSTOLAC-B Power Plant Phase I Project undertaken by

CMEC was lit, and electricity generation and grid connection were successful on the first try.

Since part of the boiler overhaul in the first phase of the project commenced officially on March 1, 2014, the

onsite project department had organized all participating units to overcome many difficulties, such as natural dis-

asters, narrow space and various cross-operations, reasonably arranged schedules, organized and steadily pushed

forward for safety construction, and finished the hydraulic boiler set, acid washing, blowpipe and other key nodes

of the project. Boiler B1 was successfully lit at 8:30, and B1 unit was successfully connected to the grid on the first

try at 17:30, December 29, 2014.

Progress

Cuba local time January 29, 2015, the ribbon-cutting ceremony for Sancti Spiritus 220 kV transformer sub-

station project was successfully held. As the first 220 kV substation undertaken by China in Cuba, its design, goods

supply, and installation and technical support were undertaken by CAMCE. On January 25, 2015, the project was

connected to the state grid of Cuba after installation and debugging.

Ribbon-cutting Ceremony for Sancti Spiritus Transformer Substation Project, Cuba, Successfully Held

On December 12, CMEC signed with CSR Corporation a cooperation agreement for the Argentine rail-

way reconstruction project and a purchase contract for 20 meter-gauge diesel locomotives at the headquarters of

SINOMACH, laying a good foundation for the smooth implementation of the project.

CMEC won the EPC contract for Argentina’s Belgrano Freight Railway Renovation Project in 2010. On Sep-

tember 19, 2014, the company received all advanced payments and acquired the warranty issued by China Export &

Credit Insurance Corporation on December 12th Then, the project met entry-into-force conditions and started con-

struction. It needs a total of 100 locomotives and 3500 freight cars of all kinds. According to the agreement, CSR

will provide 80 broad-gauge and meter-gauge locomotives, over 2000 mineral hopper cars, food hopper cars and

flatcars, etc.

Argentina’s Belgrano Freight Railway Renovation Project is an excellent representative of the “421” program

for Chinese enterprises’ going global and also one of the public development projects which has been given great

importance by the Argentina government. As a model of the strategic cooperation with the Argentina under the pat-

tern of China’s “great diplomacy”, the project was developed by the No. 6 Assembly Engineering Department of

CMEC with a contract value of USD 2.47 billion and covering more than 1500 kilometers.

CMEC and CSR Signs a Cooperation Agreement for the Argentine Railway Reconstruc-tion Project

Amugulang Heating Station Project in Mongolia Wins the Award for the Best Energy In-frastructure Project

At the annual commendation meeting by the Ministry of Energy of Mongolia on December 30, 2014, the

“Amugulang Heating Station 3X116MW” Project undertaken by CMEC, as the grand finale, won the “Mongolia

2014 Best Energy Infrastructure Project Award” together with the “Ulan Bator No.3 Power Plant 50MW Capaci-

ty-increase Project and the “Ulan Bator No.4 Power Plant 100MW Capacity-increase Project.

The Amugulang Heating Station Project is located in the extremely cold region of the Mongolian Plateau,

where weather conditions are very severe and difficulties in construction and engineering management are great.

For this reason, the project innovated in management by directly subpackaging and employing native labor forces

that were familiar with the local environment to save funds and human cost while taking a solid step in exploring

and pushing forward for the localization management pattern.

CMEC finished nearly 90% of the civil engineering installation work with high quality in the valid construc-

tion period of ten and a half months from 2013 to 2014. The fast progress and high quality were highly praised by

the Ministry of Energy of Mongolia.

PROJECT PROGRESSPROJECT PROGRESS

24 25

FOCUS POINTS TRADE AND SERVICES SPECIAL REPORT

Turkey EREN Supercritical Coal-Fired Power Plant Achieved Another Record High in Operational Performance in 2014

With the ringing of the midnight bell on December 31, 2014, China’s first two exported 600 MW supercritical

coal-fired power plant units in EREN of Turkey, which were undertaken by CMEC, completed its four-year safety

operation. In the past year, the two units in EREN power station had generated 9.55 billion kWh of electricity accu-

mulatively, with a force outage rate of 0 and the availability rate of 100%. Calculated on the basis of a 365-day year

and a 24-hour day, each unit generates 545 MW of electricity since it was put into operation, creating a historic re-

cord high. The No. 2 Unit, in particular, has kept running for 217 days and 21 hours (the only time the units closed

down was due to the tripping of the only outward transmission line, which was caused by the breakdown of the state

grid of Turkey)

During the four years, CMEC persisted in providing high-level operation maintenance and guidance services

for the Employer. Under the elaborate care of the Chinese site operation and maintenance (O&M) and follow-up

O&M guidance teams, routine and specific overhauls were carried out for the power plant every year, and no abnor-

mal spoilage of unit equipment happened because of the proper treatment of accidents.

The excellent operational data of the two units in EREN, Turkey, has fully demonstrated the design, goods

supply, installation, debugging and management levels of China’s large-scale steam power plant. Moreover,

CMEC’s competence and employer focus awareness of providing follow-up O&M services further proves that

Chinese contractors have been equipped with the “caretaker pattern” management and service capability to provide

international employers with power station construction and operation and maintenance services.

On December 30, 2014, the grand opening ceremony for Myanmar Doyka Phase II Hydropower Station Pro-

ject undertaken by CMEC was held. Thein Sein, President of Myanmar, Yang Houlan, Chinese ambassador to My-

anmar, Sun Bai, President of CMEC, and other relevant leaders from both sides attended the ceremony.

“The successful completion of Doyka Phase II Hydropower Station Project is of great importance to the social

and economic development of Myanmar. As the first BOT project, the project is completed after 28 months and

wins the ASEAN Outstanding Engineering Achievement Award, which is far beyond the expectations of the people

and becomes one of the best hydropower stations in Myanmar. In the ceremony speech, President Thein Sein highly

praised the social and economic effect the project had brought, and also made important instructions for the direc-

tion of Myanmar electric power development.

Doyka Phase II Hydropower Station Project achieved 100% acceptance, 100% zero accident rate within the

short construction period of two years and four months. Doyka Phase II Hydropower Station generates 600 million

kWh of electricity every year, thus effectively easing the difficult situation of inadequate electricity and greatly op-

timizing the electricity utilization for the Myanmar people. On November 12, 2014, the project won an important

honor of ASEAN Outstanding Engineering Achievement Award at the 32nd Conference of ASEAN Federation of

Engineering Organizations (CAFEO) in Yangon, successfully enhancing influence of Myanmar in ASEAN region.

Grand Opening Ceremony for Myanmar Doyka Hydropower Station Project Held

PROJECT PROGRESS PROJECT PROGRESS

26 27

TRADE AND SERVICESTRADE AND SERVICESFOCUS POINTS PROJECT PROGRESS SPECIAL REPORT

On November 18, 2014, Wu Gang, General Manager of

SINOMACH Automobile Co., Ltd. reached an agreement on

the cooperative mode in the coming four years from 2015 with

the principal of Ford China in Shanghai and signed the domes-

tic exclusive distribution contract for imported Ford cars of

all series for four years. From January 1, 2015, SINOMACH

Automobile will continue to provide Ford China with distribu-

tion and service business for imported cars of all series in the

SINOMACH Automobile and Ford China Renew a Domestic Exclusive Distribution Contract for Imported Ford Cars of All Series in the Coming Four Years

coming four years.

Since the return of imported Ford brands to China’s

market in 2010, imported Ford cars have continued to increase

rapidly in the industry with the help of SINOMACH Automo-

bile. So far, nearly 70,000 Ford cars have been imported with

a sales volume of over RMB 21.5 billion.

On January 29, CMEC and General Electric Company

(GE) jointly signed the Memorandum of Understanding for

Strategic Cooperation in Africa and the Cabinda Power Gen-

eration Equipment Purchase Contract. Jeff Immelt, President

of GE, Jay Ireland, President of GE Africa, Zhang Chun, Gen-

eral Manager of CMEC, and other senior managers from both

sides attended the signing ceremony. Zhang Chun expressed

CMEC Signs a Memorandum with GE for Strategic Cooperation in Africahis thanks to the long-term support from GE, hoping both

sides would expand fields of cooperation and deepen cooper-

ation in multiple patterns such as EPC, consortium, joint in-

vestment, co-financing, etc. Jeff Immelt said that GE attached

great importance to the cooperation with CMEC and held full

expectation on the prospect of cooperation between both sides.

According to the latest statistics by the General Ad-

ministration of Customs of the PRC and China Chamber of

Commerce for Import and Export of Textile and Apparel

(CCCT), among the list of China’s Top 100 Textile and Cloth-

ing Export Enterprises selected from over 80,000 enterprises,

SUMEC Textile and Light Industry Co. Ltd. was promoted to

the 12th, higher than the rank of 16th over the same period of

the previous year, creating a historic record high. Moreover,

SUMEC Textile and Light Industry Co. Ltd. continued to hold

SUMEC Textile and Light Industry Wins the 2014 National Championship of Export to EU

the championship of exports to EU, consolidating its market

position of ranking 4th in China for exports to the US.

In 2014, SUMEC Textile and Light Industry Co. Ltd.

completed exports of USD 576 million, up 15.6% over the

previous year, which was three times the national growing rate

(5.1%) of the industry, and overfulfilled the export target (USD

498 million) of 2013 two months ahead of time with a good

profit level, developing decidedly with high quality.

Recently, ARGO, Panamax cargo ship, which carried

65000 tons of Ukraine cereal, arrived in Shenzhen, China, in-

dicating that the 2014 new season Ukraine cereal imported by

CCEC affiliated with CMEC successfully arrived at Chiwan

Port of Shenzhen.

The USD 3 billion Ukrainian agricultural project

Corn Imported by CCEC from Ukraine First Arrives in Chiwan Port of Shenzhen

conducted by CCEC is one of the important parts of Chi-

na-Ukraine economic and trade strategic cooperation, and

cereal trade is the most important part of the agricultural

project. The steady execution of the project showed that Chi-

na-Ukraine economic and trade cooperation had taken a solid

step forward. Despite the turbulent political scene in Ukraine

during the period of execution, and the alteration of the per-

sonnel of the partnership, the project stood strong against the

severe test. Especially, during the project execution in the

latest three months, in front of all kinds of difficulties from in-

side of Ukraine and hollow rumors in the markets, both sides

united as one and conducted friendly cooperation by virtue of

the professional quality of both sides to steadily promote the

execution of the project and will try to complete the cereal

trading contract signed this year.

28 29

SPECIAL REPORTFOCUS POINTS PROJECT PROGRESS TRADE AND SERVICES SPECIAL REPORT

Understanding the “One Belt One Road”

BackgroundStarting purposesStarting strategy

Roadmap

Starting significanceTrend: over 60 countries respond

One Belt and One Road refers to

“Silk Road Economic Belt” and

“21st Century Maritime Silk Road”.

“One Belt and One Road” is not a

substance and system but an idea

and initiative for cooperation and

development, which, holding high

the banner of peaceful develop-

ment, aims to actively develop the

economic cooperative partnership

and jointly build a community of

common interest, destiny and re-

sponsibility with political mutual

trust, economic integration, and

cultural inclusiveness, with the help

of the existing and effective regional

cooperative platform by relying on

the existing bilateral and multilater-

al mechanism between China and

relevant countries and leveraging

on the historical connections of the

ancient Silk Road.

President Xi Jinping put forward the

strategic conception of building the

“new Silk Road Economic Belt” and

“21st Century Maritime Silk Road”

in September and October, 2013

respectively.

Roadmap

Starting purposesBackground

Roadmap of one belt one roadNorthern route: Beijing-Russia-Germany-Northern Europe Middle route: Beijing-Xi’an-Urumchi-Afghanistan-Kazakhstan-Hun-gary-ParisSouthern route: Quanzhou-Fuzhou-Guangzhou-Haikou-Bei-hai-Hano-Kuala Lumppur-Djakarta-Colombo-Calcutta-Nairobi-Ath-ens-Venice

Domestic reform has gone into the deep-water zone, opening up faces adjustment and redirection

Globalization of world economy and integration of regional economy advance rapidly

China has become a giant in energy import and consumption

“China threat” theory has been widely reported and speculated

Strategic game between China and US tums white-hot increasingly

Facilitate trade based on the links of land, air and sea transport as well as forming a “New Normal” state of peace and development.

Relevant recommended industries based on links of land transport, trade, and air and sea transport

Land transportRailway and railway equipment

Business treadAgricultureBusiness tradeOil and gas import

Air and sea transportAir transportSea transport

“Silk Road Economic Belt” and

“21st Century Maritime Silk Road”,

known shortly as the “One Belt and One

Road” initiatives.

The “Silk Road Economic Belt”

strategy involves Southeast Asian eco-

nomic integration, Northeast Asian

economic integration, the final mix of

the former two, and then stretches to

Europe, forming the great trend of the

economic integration of the Eurasian

continent. The “21st Century Maritime

Silk Road” strategy connects Europe,

China puts forward two great strategies conforming to the economic integration of the Eurasian continent:

Starting strategy

Asia and Africa and forms a close loop

with the “Silk Road Economic Belt”

strategy.

As gateways and bonds to connect

China with multiple neighboring coun-

tries, the border regions are of unique

position and roles in building “One Belt

and One Road”.

Peace and stability in border re-

gions are prerequisites and guarantees

for “One Belt and One Road” to push

forward. China has already solved bor-

der problems with 12 land neighbors,

with the exception of India and the

Kingdom of Bhutan, and the undemar-

cated border regions between China

and India and between China and the

Kingdom of Bhutan keep in peace and

stability in general. The overall situation

of regions bordering China is in the best

state in history, and the neighboring

countries have expressed growing will-

ingness to strengthen cooperation with

China.

Interconnection and interworking

in border regions is supportive to the

30 31

So far, there have been over 60

countries that clearly show willingness

to join the strategy of “one belt and one

road”, which means at least half of the

countries on Euro-Asia continents have

already showed willingness to join in

and the number is increasing.

The strategic goal of “one belt and

one road” is to build an interest commu-

nity, a destiny community and a respon-

Trend: over 60 countries respond

It is an important strategic deci-

sion made by the CPC Central Com-

mittee and the State Council to push

forward the building of the “Silk Road

Economic Belt” and “21st Century Mar-

itime Silk Road” (known shortly as “One

Belt and One Road”) according to the

change of global situations and by plan-

ning international and national overall

situations as a whole. The essence of

Starting significancethe initiatives is to actively develop

the economic cooperative partnership

with the countries along the route that

the program covers and jointly build a

community of common interest, destiny

and responsibility with political mutual

trust, economic integration and cultural

inclusiveness by borrowing the his-

torical symbol of the ancient silk road

and taking theme of the time, peaceful

development and cooperation and mu-

tual benefits, which is of epoch-making

significance in creating China’s new

pattern of all-dimensional opening up,

pushing forward the great rejuvenation

of China and promoting world peace

and development. “One Belt One Road”

is a symphony jointly played by all

countries rather than a solo performed

only by China.

sible community with political mutual

trust, economic integration and cultural

inclusiveness. That is, what China has

pushed forward is to build an interest,

destiny and responsible community with

mutual benefit with all countries in the

world including Euro-Asia continents

with unspoken words, everyone cooper-

ates well, play well and live well. Such

attitude of China was incisively and viv-

idly displayed at the CICA (Conference

on Interaction and Confidence-Building

Measures in Asia)in May, 2014, dur-

ing which China clearly showed that it

would promote the building of “Asia

of Asian people” as chairman of CICA

from 2014 to 2016 and would make the

CICA platform an overall platform to

solve the peace problems in Asia.

SPECIAL REPORT

building of “One Belt and One Road”.

As the pivotal point of passageways, the

border ports serve as frontline windows

in China’s opening up. China planned

and built the Asian Highway network

and the pan-Asian high-speed railway

network and opened 13 roads and 8 rail-

ways to countries in Northeast, Central,

South and Southeast Asia.

33

WORK TOGETHERWIN TOGETHER

www.sinomach.com.cn

Rebuilda New SINOMACH

Overseas

04/2015

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