Enterprises strengthen collaboration

Updated: January 4, 2017 Source: China.org.cn
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China’s new energy enterprises have sped up their presence in the world, experts said at a new energy industry development forum in Beijing on Dec. 27. 

Overseas investment of the new energy businesses this year increased 60 percent  from 2015. Although they have accelerated the pace of going global, they face many problems caused by differences in policy, culture, law and customs, and limitations in financing channels. 

Zhu Gongshan, chairman of China New Energy Overseas Development Alliance (CNODA), believes it is necessary for China’s new energy enterprises to  make joint efforts in the international competition and strive for overseas market success. 

China plays an important role in the new round of international energy development and has become the world’s largest energy producer and consumer. China is the world’s leader in primary energy output, secondary energy production and electricity generation. 

Huge investment in hydropower, wind power, solar power, biomass energy, energy storage and new energy vehicles have made China a major player in these fields, as well as an indispensable force in promoting the world energy revolution. 

The Belt and Road Initiative creates a favorable environment for China’s energy enterprises to seek more opportunities for cooperation. In the past three years, China’s energy enterprises have engaged themselves in more than 40 large-scale energy projects in 19 countries along the Belt and Road routes. Among the projects, eight involved renewable energy with a total investment of US$20 billion in 2015, and 11 involve renewable energy projects with a total investment of US$32 billion this year. 

Nevertheless, China’s foreign investment in the new energy field still faces many problems, said Hu Weiping, vice-chairman of the CNODA. Hu noted, "For example, investment in solar and wind investment is still small and unevenly distributed. Many new energy enterprises would like to enter the international market, but some cannot achieve sustainable development abroad." 

Some Chinese enterprises cannot adapt to the laws, tax, financing and labor rules in foreign countries, Hu said. 

Another obstacle lies in that Chinese enterprises mainly rely on the State-owned and commercial banks for financing, which requires a long and complicated procedure to obtain funds. Many medium-sized and small new energy enterprises would miss business opportunities because of the lack of funding. 

Zhu added that the alliance is meant to strengthen the collaboration and cooperation among China’s new energy enterprises, and stop vicious competition through an effective mechanism.

Editor: zhangjunmian