Congress Delegate: SOEs to Go Global

Cai Rang, a Party congress delegate and president of China Iron and Steel Research Institute Group (CISRIG).

China's state-owned enterprises (SOEs) should tap into the various resources found both at home and abroad, in order to gain more advantages from the lucrative international market amid the increasingly rapid economic globalization, Cai Rang, a Party congress delegate, said during the ongoing 18th CPC National Congress.

Cai, president of China Iron and Steel Research Institute Group (CISRIG), explained, "In today's world, no countries and regions can achieve substantial development by shutting the door on others as economic globalization has become an inevitable trend which leads to heavier interdependence among them in the areas of social production, distribution and consumption."

Cai continued, "As a result, it's urgent for Chinese corporations, especially the SOEs which form the lifeline of the national economy, to broaden their strategic vision and make good use of the international resources and market for further development."

Cai said that the Chinese mainland has made great progress in both its business and commercial sectors by attracting investment from Hong Kong, Macao and Taiwan, all of which have set up numerous companies on the mainland since the reform and opening-up policy was adopted in 1978. In addition, the majority of transnational companies from Europe and America have also started operating on the mainland.

Against this background of success, Chinese enterprises, including the SOEs, now have more connections and exchanges with the outside world, and have the opportunity to mature both easily and swiftly. "Therefore, Chinese companies should seize the good opportunities economic globalization has on offer for their own improved development," Cai said.

Cai also stressed the importance of creating awareness with those Chinese enterprises that are seeking more interaction with their foreign peers, saying that they should strengthen their competitiveness, build up their skills regarding international cooperation, ensure the rational allocation of human resources, and have a deep understanding of international trade laws and regulations.

Talking about the external resources that can be tapped into, Cai explained, "These resources include law firms, accounting firms, the multi-nationals' strategic research institutes and various consulting organizations both at home and abroad."

Cai said, "The CISRIG, an SOE formed in 1999 through the merger of two research institutions, has also made great efforts to expand its international exchanges and cooperation, not only on an academic level- which has been maintained for many years- but also on a business level which involves industrial, engineering and commercial sectors. "

"It's in this way that we draw on each other's individual strengths. In fact, all of the stakeholders are going global in this process."

China stated in its 12th Five-Year Development Plan (2011-2015) that more efforts should be exerted in order to develop those large-scaled Chinese multinational corporations and financial institutions that possess the necessary and highly-enhanced international operation and management capabilities.