欧洲参与中国的一带一路倡议报告-中国欧盟商会-2020.1-52页_1mb

Summary of "THE ROAD LESS TRAVELLED: European Involvement in China's Belt and Road Initiative"

Core Content

The report "THE ROAD LESS TRAVELLED" provides an in-depth analysis of European businesses' involvement in China's Belt and Road Initiative (BRI), highlighting the opportunities and challenges they face. It is based on a survey of 132 European Chamber members and follow-up interviews, offering a business-centric perspective on the BRI.

Main Points

Overview of the European Union Chamber of Commerce in China

• Established in 2000, it represents over 1,700 European companies across nine cities in China.
• It is a member-driven, non-profit organization with a strong relationship with both Chinese and European authorities.
• It serves as the official voice of European business in China and is part of a global network of European Business Organizations (EBOs).

The Belt and Road Initiative (BRI)

• Launched in 2013, the BRI is a global infrastructure and investment initiative aimed at enhancing connectivity.
• It is seen as a significant driver of global growth, with the World Bank estimating that a 1% increase in infrastructure spending leads to a 2% increase in global GDP and a 7% increase in developing countries' GDP.
• Despite its potential, the BRI lacks transparency and openness to foreign participation, especially in procurement processes.

European Participation in the BRI

• Only 15% of surveyed companies have bid on BRI-related projects.
• Most European companies act as subcontractors, not as direct contractors.
• The majority of BRI-related projects are managed and financed by Chinese state-owned enterprises (SOEs) and policy banks.
• European companies often play niche roles, such as providing specific technology or expertise in areas where Chinese firms are less competitive.

Key Challenges

• Lack of Transparency: Most companies report that BRI-related project information is not publicly available, making it difficult to compete fairly.
• Limited Access to Information: Only two companies learned about BRI projects through public tenders.
• Market Distortions: The dominance of Chinese SOEs in BRI projects creates an uneven playing field, limiting European competition.
• ICT Sector Disadvantages: European ICT firms face restrictions in the Chinese market, making it hard to compete in digital infrastructure projects.
• Competitive Bids Not Effective: European companies often do not have the opportunity to compete on a level playing field due to the lack of transparency.

BRI Financing

• The BRI is largely debt-financed, with Chinese policy banks and SOEs being the primary funders.
• International organizations and foreign banks play a minimal role in BRI financing.
• The financial structure of the BRI is heavily reliant on domestic Chinese entities, which can influence the terms of projects.

Key Insights

BRI's Impact on European Companies

• European companies involved in the BRI note that they have benefited from increased sales and opportunities, but mostly in smaller, less politically sensitive projects.
• The majority of BRI-related projects are dominated by Chinese firms, which often provide end-to-end solutions, including financing and technology.
• European firms are often limited to niche roles due to the lack of transparency and the dominance of Chinese SOEs.

European Business Strategy

• The EU is encouraged to develop a credible Connectivity Strategy to complement and compete with the BRI.
• The report suggests that the EU should focus on:
  • Scaling up European companies to compete fairly in third country markets.
  • Using domestic tools to push for reciprocity in China's market.
  • Strengthening cooperation with Chinese companies while promoting transparency and sustainability in BRI projects.

Regional Involvement

• European companies are involved in BRI-related projects across various regions:
  • East/Southeast Asia: China, Malaysia, Indonesia, Thailand, Vietnam, Myanmar, Singapore
  • South Asia: India, Pakistan, Bangladesh
  • Central Asia: Kazakhstan, Russia, Uzbekistan
  • The Middle East: United Arab Emirates, Jordan, Saudi Arabia
  • Africa: Tanzania, Morocco, Ivory Coast, Algeria, Congo, Somalia, Sudan, Ethiopia
  • Europe: Belgium, Italy, Romania, Belarus, and Central and Eastern European countries
  • The Americas: Argentina, Brazil

Unique Opportunities for European Firms

• Quality and Safety Services (QSS)/Testing, Inspection, and Certification (TIC): European firms in these sectors have managed to secure a unique foothold in the BRI due to their long-standing relationships with recipient countries and their expertise in independent assessments.
• Shipping and Logistics: European firms report a relatively higher level of involvement, often working in tandem with Chinese partners, where they contribute technology and know-how while Chinese firms provide financing.

Recommendations

To the Chinese Government

• Improve transparency in BRI-related procurement processes.
• Encourage greater inclusion of foreign companies in BRI projects, particularly in sectors where they can offer unique value.

To the EU and Member States

• Develop a credible Connectivity Strategy to offer a competitive alternative to the BRI.
• Enhance cooperation with Chinese companies while ensuring fair and transparent practices.
• Use domestic tools to promote reciprocity and open markets in China.

Conclusion

The BRI, while a powerful driver of global connectivity and economic growth, presents significant challenges for European businesses due to its lack of transparency and the dominance of Chinese SOEs. The report emphasizes the need for the EU to develop a more competitive and transparent alternative strategy to ensure that European companies can participate meaningfully in the global infrastructure market.