China-UK Infrastructure Alliance to Be Established, Cooperation Landscape Is Changing

2016-06-13 719 0人评论
In October 2015, Chinese President Xi Jinping and British Prime Minister Cameron jointly issued a statement advocating the establishment of a China-UK Infrastructure Alliance. As one of the outcomes of Xi's visit to the UK last year, the China-UK Infrastructure Alliance is being advanced.

“This was proposed by the UK side.” On June 2, 2016, Fang Qiuchen, chairman of the China International Contractors Association, said in an interview that the UK wants to cooperate with us, indicating that the cooperation landscape is changing. He also revealed that relevant documents are currently under discussion, and in his view, these documents are operable.

  The alliance will be established within the next three to four months

  “What does this alliance do? First, it will promote infrastructure cooperation between the two sides outside the UK and China. A China-UK Infrastructure Alliance Center will be established within the next three to four months to help identify which projects are feasible, what obstacles exist, and help both sides implement these projects sustainably. For cooperation between China, the UK, and third parties, this will create a triple win.” said Robert Goodwill, Minister of State at the UK Department for Transport.

He also revealed that in order to enable Chinese institutions to enter the UK market and invest in infrastructure projects, the alliance will also launch training at the end of the year to help Chinese institutions better adapt to overseas investment.

Currently, infrastructure cooperation has become an important aspect of China-UK economic and trade cooperation and has received high attention from both governments. The UK's Northern Powerhouse plan echoes the “Belt and Road” initiative, providing a good opportunity for cooperation between the two countries.

Fang Qiuchen believes that China-UK cooperation is highly complementary and has huge potential. Chinese enterprises have formed industrial chains in various aspects and are also competitive in fields such as power and water conservancy construction, especially with outstanding equipment technology in high-speed rail and nuclear power. British enterprises also have very prominent advantages in the international engineering field.

“Investing in third countries such as the African market also has good prospects. The UK has natural, long-standing historical ties with many developing countries, including language, culture, and other aspects. Chinese enterprises are complementary to the UK in terms of market and capabilities. Professional teams from both countries can cooperate globally to implement a series of infrastructure projects, combining strengths, and we can achieve new progress in Africa, as well as in countries along the ‘Belt and Road’ and European countries.” he said.

Mutual Respect and Shared Benefits

  The “Belt and Road” initiative is an important part of the China-UK Infrastructure Alliance, but why does China choose the UK as a partner for the infrastructure alliance?
Robert Goodwill explained that in addition to the two countries' footprint in global infrastructure investment projects, their professional skills in infrastructure, including technical services from banking, insurance, legal, accounting, and other consulting sectors, are also among the considerations.

“We have obvious advantages in sustainable development and community integration. Currently, we face the dual challenges of protecting the environment and providing infrastructure. Meeting people's needs requires considering a broader range of economic development, resource protection, and balanced development between regions; we need to consider developing projects on new land as well as land reuse, and carry out intelligent planning. Transport infrastructure can enable our existing cities to be reborn, and our new high-speed rail development projects have also adopted new standards. Cooperation between China and the UK can help us build prosperous and developing cities.” he said.

“Finally, we are open to new ideas.” The UK was the first Western developed country to announce its participation in the Asian Infrastructure Investment Bank. In Robert Goodwill's view, the UK's willingness to join the China-led Asian Infrastructure Investment Bank is not, as some say, abandoning old friends to curry favor with new ones; in fact, cooperation between the two sides is based on mutual respect and shared benefits.

Robert Goodwill also revealed that Nkosazana Dlamini-Zuma, Chairperson of the African Union Commission, welcomed the China-UK Infrastructure Alliance's involvement in Africa.

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