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On September 28th, 10 Zhejiang private-owned enterprise groups, including Zhejiang Chuanhua Group and China Leather City, jointly invested 11 billion yuan to officially start construction of an international logistics base in Huaiyin District, Jinan City, Shandong Province.
This is just a microcosm of the "horizontal" strategy adopted by companies in the oil and chemical industries of Zhejiang Province in recent years and other manufacturing industries facing trade restrictions and falling profits. At present, Zhejiang's oil and chemical companies have expanded their investment abroad, and seeking cooperation has gradually become a popular trend.
In fact, in addition to the spontaneous awakening of enterprises, the “visible hand†boost of Zhejiang and local governments has become a “catalyst†for companies to go global.
As early as the beginning of 1999, Zhejiang Province put forward the “two pushes†as the strategic work focus for implementing “going outâ€, namely, promoting the commodity specialized market to establish sub-markets overseas, setting up qualified companies to set up marketing outlets overseas and establishing international marketing. Network; Promote advantageous industries to establish production enterprises overseas and carry out overseas processing trade. The "Regulations on the Management of Foreign Contracted Projects" and the "Regulations on the Administration of Foreign Labor Services Cooperation" have been promulgated successively. The relevant encouragement policies and measures have been improved and implemented, and the service and support systems have been improved. Make full use of high-level mutual visits and multilateral economic and trade liaison mechanisms and consultation mechanisms to support and promote the signing and implementation of all types of large projects, and provide a strong guarantee for enterprises to “go globalâ€.
In 2004, Zhejiang's foreign economic cooperation has achieved fruitful results. In the whole year, the external economic cooperation turnover was 1.53 billion U.S. dollars, and the total scale continued to be the 3rd among all provinces, cities, and regions in the country; the value of newly-signed contracts was 1.68 billion U.S. dollars, and 9,408 person-times of labor service were dispatched, up 37.7%. 7% and 5.0%. Among them, the province's large-scale petroleum and chemical companies completed export delivery value of 20.6 billion yuan, the introduction of 116 foreign projects, the contract use of foreign capital 424.66 million, the actual use of foreign capital 248270000. By the end of 2004, there were a total of 1,760 overseas investment enterprises in Zhejiang Province with a total investment of 780 million U.S. dollars, of which China invested 600 million U.S. dollars. From January to July of this year, the province’s imports and exports totaled US$58.84 billion, up 27.80% over the same period of the previous year; of which total exports were US$41.637 billion; imports were US$17.247 billion, up 12.8%; Trade With a surplus of 24.39 billion U.S. dollars, it still ranks first in the country. Zhenhai Refining and other four companies exported more than US$100 million.
In order to encourage enterprises to “go outâ€, in 2004 the city of Hangzhou introduced incentives and compensation measures. The "Measures" stipulates that enterprises that export fine chemicals, textiles and garments to more than 50 million U.S. dollars shall receive a reward of 100,000 yuan; enterprises that participate in the foreign export trade fairs organized or organized by the Municipal Foreign Trade and Economic Cooperation Bureau shall have the highest subsidy for each stall. 15,000 yuan; municipal enterprises that export more than 15% of the export value of processing trade and whose export value is more than 100 million US dollars award 100,000 yuan.
According to statistics, from January to July this year, out of the US$ 20 million invested by Hangzhou, China’s investment was US$ 19 million, accounting for 95% of the total. In early 2004, this proportion was only about 50%. In the first 7 months of this year, Hangzhou City approved a total of 25 foreign investment projects with a total investment of over 20 million U.S. dollars, an increase of 19% over the same period of last year. Most of the investment was concentrated in the IT, chemical, textile, and real estate sectors. The characteristics of sole proprietorship have become increasingly prominent.
The Visible Hand Boosts Enterprises to "Go Global"--Part Three of the Export-oriented Economic Development Survey of Petroleum and Chemical Industry in Zhejiang Province
From September 12 to September 15 this year, Zhejiang Juhua Group and the world’s second largest resource company, Australia’s Rio Tinto Mining Group Corporation, conducted multiple rounds of negotiations in Beijing and Hong Kong, respectively, on industrial salt, iron ore, caustic soda, and oxidation. Aluminium and other products and other more extensive areas of cooperation reached a package agreement and reached a consensus on the establishment of a giant-Rio strategic partnership.
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