Chinese enterprises and their peers in developed countries have been able to complement each other across a broad range of sectors including infrastructure, energy, environmental protection, and finance.
The following case studies exhibit the mutually beneficial third-party market cooperation between China and Japan, France, and the UK.
China and Japan: from competition to cooperation
Sino-Japanese relations have warmed since 2018, and the two countries have strengthened their relationship. Chinese and Japanese cooperation has played a role in driving social and economic progress for developing countries. Many B&R countries urgently need to develop infrastructure but face technological and financial challenges. Backed by strong government support, financial strength, and production capacity, China has been able to assist. Meanwhile, Japan’s rich overseas experience, advanced technology, and mature risk management have created an unrivaled partnership that has provided a mutually beneficial solution for developing countries, apart from China and Japan.
Third-party market cooperation projects:
– Nippon Express, Japan’s largest logistics company, has cooperated with China Railway to assist Japanese enterprises in China to carry out regular transport business in Central Asia and Europe with China-Europe freight trains. In September 2017, Nippon Express announced that it would cooperate with Kazakhstan's National Railway Corporation to provide joint rail and sea transportation linking Chinese and Japanese ports with those of Central Asia and Europe.
– China Development Bank (CDB), Japan Bank for International Cooperation, Mizuho Financial Group, and Sumitomo Mitsui Banking Corporation have signed a joint loan agreement for infrastructure investment in third-party markets.
China and France: connecting Asia and Africa
France has a long history, rich experience, and close ties with Africa, especially in the continent’s French-speaking countries. African countries are rich in natural resources for traditional and renewable energy, and they have an urgent need to improve their infrastructure while France has leading technology in infrastructure and energy. Meanwhile, China has production capacity advantages, a renowned manufacturing base, and robust financial strength.
Third-party market cooperation has enabled Chinese companies to enter the African market. On the other hand, China can help French companies enter the Asian market, taking advantage of its location there.
Third-party market cooperation projects:
– In November 2018, Bolloré Transport & Logistics and PowerChina jointly won the bid for the Ibom Port Project in Nigeria.
– In March 2019, Schneider Electric signed a strategic cooperation agreement with PowerChina. The two parties will further expand their cooperation in the fields of power and electricity, water resources and the environment, infrastructure, and real estate. Meanwhile, Schneider Electric will assist equipment manufacturing enterprises.
China and UK: breaking through barriers
In 2015, President Xi visited the UK and spoke about the willingness of the two countries to take part in third-party market cooperation, which is fully supported by both governments: “The development of third-party market cooperation between China and the UK is not only a great historic opportunity but has also garnered the support of both the Chinese and British governments, and their policies.” Looking ahead, there will be plenty of opportunities for Chinese and UK businesses to partner through the BRI.