BRI helps to improve infrastructure

Editor's Note: The Second Belt and Road Forum for International Cooperation was held in Beijing from April 25 to 27. China Daily interviewed top business executives from well-known multinational companies for their views and suggestions on the initiative.

Q1: What is your view of the Belt and Road Initiative proposed by China six years ago? Will the initiative benefit your country or region?

Q2: Do you think the initiative will help fuel global economic growth and free trade and investment? Are there any new industries in your country or region made possible by the BRI?

Q3: How does the BRI benefit your business in China and worldwide? How does your company plan to further participate in the initiative?

Q4: What suggestions do you have for improving the implementation of the BRI?

Q5: Are there infrastructure projects that your country or region would not be able to implement without the BRI? Can you give examples of how these projects help the economy of your country or region?

A1 Since its inception six years ago, the Belt and Road Initiative has quickly become synonymous with economic development and interconnectivity on a global scale. The pronounced presence of this initiative in today's society is the result of productive relationships between China and other economies. According to the most recent statistics, over 125 countries and 29 international organizations have signed cooperation agreements as part of the BRI.

The cooperation between the BRI and Kazakhstan's Bright Road has set new heights for Sino-Kazakh relations, facilitating further development in the energy, transportation and manufacturing sectors. The BRI investments in Central Africa and Latin America, core regions for ERG's operations, are also seen as highly beneficial.

A2 There is extensive research suggesting and confirming that the BRI has helped and will continue to help countries improve their economic output as well as their impact in the global economic arena.

In the context of the electric vehicle industry, ERG views China's economic transition to a greener economy as strikingly positive. Surging demand for electric vehicles, in turn, drives the development in associated industries, such as cobalt and copper - critical materials in the production of lithiumion batteries needed for electric vehicles. As one of the largest cobalt suppliers to China, ERG is delighted to play an important role in this sector and fuel the development of electric vehicles.

A3 Initially we focused predominantly on the sales of mineral products to China. Yet, under the guidance of the BRI, ERG's collaboration with China has taken other forms, including engineering procurement construction and financing, off-take agreements, and equity partnerships.

Several strategic projects implemented by ERG are currently aided by Chinese support, such as our Metalkol RTR cobalt and copper operation in the Democratic Republic of the Congo or BAMIN integrated iron ore mining and logistics project in Brazil.

ERG will continue to develop its current strategic partnerships as means of increasing sales and integrating the opportunities of the BRI further, with the goal of overcoming infrastructural gaps still found in Central Asia, Central Africa and Latin America.

A4 We noted that during the 13th National People's Congress meeting in March, the Chinese government announced that it will deliver major projects focusing on infrastructure and industrial investment, implement projects to improve local peoples' livelihoods, conduct more activities promoting trade and investment opportunities and endorse the construction of free trade areas.

These forward-thinking domestic measures will definitely bring the initiative to a new level. We expect to be an active participant in new events and platforms and to see an international market economy with higher efficiency and a more open environment for enterprises. At ERG, we look forward to seeing more business opportunities brought by the BRI.

A5 Generally, with the implementation of the BRI's route, which extends from China to Europe, vast territories have seen significant development due to their proximity and added value to the BRI's trade route. These territories have experienced increased economic activity and development.

Such is the case for specific areas in the Republic of Kazakhstan, which is the world's largest landlocked country, and, as such, highly dependent on the use of railways. It brings numerous opportunities for Kazakh enterprises based along the BRI route that wish to export their products, since the country now represents a key transport hub for both Europe and the Asia-Pacific region.

A1 The BRI helps to provide infrastructure and reduces friction in global trade. This is of critical importance to our manufacturing customers. The initiative is forward looking and will help to support the supply chains of tomorrow in leveraging future emerging economies and digital transformation.

As a provider of next generation enterprise resource planning to global manufacturing companies, global supply chains and increased connectivity and visibility provided by programs like the Belt and Road Initiative should deliver benefits to our global customers.

A2 Global trade benefits the world by leveraging the unique skills and capabilities available in each country. Consumers receive higher quality products at lower cost, driving greater demand and creating a virtuous cycle that contributes to global economic growth. The only way to successfully compete with global trade in the long term is through more global trade. The BRI will help countries worldwide to open markets and investment to remain competitive.

A3 The BRI increases the importance of China as a hub in global supply chains and is a driver for Chinese manufacturing. While our early business in China was driven by inbound multinationals, we are increasingly seeing acquisitions of foreign companies by Chinese firms. To better serve these Chinese headquartered companies with a global footprint, we are increasing our presence within China. A significant amount of our global workforce is now located in China and that is forecast to continue growing. We are working with local Chinese cloud leaders to tailor our QAD Cloud offering for the Chinese market.

A4 Nothing specifically at this stage. But overall we believe the BRI needs to ensure long-term sustainable success of all countries affected globally and is supported by a balanced approach to timed investment and return.

A5 The BRI is accelerating the growth of emerging economies. This growth will disproportionally favor manufacturing. As a company that provides Cloud ERP to global manufacturing companies, the BRI has the potential to increase our market and expand our geographic footprint.

(China Daily Global 05/10/2019 page9)