Wang Yanguo: Private enterprises are China`s Important Forces in International Mining Cooperation
Source: www.mlr.gov.cn Citation: www.chinamining.com.cn Date: Nov.7, 2013
On the eve of the CHINA MINING 2013, Wang Yanguo, Executive Vice President of China Int`l Chamber of Commerce for the Private Sector said that private enterprises were China`s active and important forces in the international mining cooperation.
Wang Yanguo said, 2012 statistics bulletin of the foreign direct investment in China which was released in September this year, showed that in 2012, under the background of the global foreign direct investment (FDI) flew down 17% compared with 2011, China`s FDI hit a new record of $87.8 billion, increased by 17.6% from a year earlier and China had become one of the three largest foreign investors in the world for the first time . Among them, the proportion of total investment of the non-state-owned enterprises and private enterprises accounted for 45% and the proportion only 14% in 2008, and only 29% in 2010. That is to say, in four years time, foreign investment of non-public enterprises and private enterprises had increased by 3.2 times, they are more active than before. The enterprise quantity of logging out overseas shows 13,500 Chinese investors logged on 2.2 enterprises from abroad. Among them, the state-owned enterprises overseas log out only about 10%. Non-public enterprises and private enterprises are the main forces in overseas logging out. From the investment scale, in 2012, only China’s top 500 private companies invested in 730 projects in overseas, total investment reached $16 billion, almost 20% of the national foreign direct investment. In the international cooperation, non-public enterprises and private enterprises have to get rid of the small model. Among them, HUAWEI, WANXIANG, GEELY, NEW HOPE, SANY, WANDA, etc, had become the participants in the important projects of international cooperation.
Wang Yanguo pointed out that China`s private enterprises "going out" organization, investment and cooperation models had become increasingly diverse, according to the project characteristics, or their own conditions for complementary advantages, spread risk, etc., they had explored many "going out" models such as the cooperation with state-owned geological exploration units model, with the combination of state-owned enterprises model, private enterprises unity model, with the aid of private equity funds model; The cooperation models include the deep cooperation with overseas primary exploration company, with a variety of intermediary complementary cooperation, cooperation with foreign companies, equity merger and acquisition form equity cooperation and so on. Continuously exploring suitable investment patterns, China`s private enterprises formed many international investment models in the field of mining, for example, the industrial chain resources integration, transnational mergers and acquisitions risk of mineral exploration, engineering and technology in resources, franchise as well as the "industrial park”. In addition, in the international cooperation, private enterprises had adopted the financing to buy ore and exclusive sale of raw materials, product sharing agreement (PSA) and profit sharing agreement and other rights and value realization model. (Yu Defu) (Translated by TLRHVC)
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