Banks, companies need to cooperate to go global

Chinese banks and companies should cooperate to explore overseas markets, Xu Baocheng, a deputy to the National People’s Congress, the highest organ of state power, told Chinadaily.com.cn Thursday.

Xu Baocheng, general manager of China Tiesiju Civil Engineering Group and deputy to the National People’s Congress. [Photo/chinadaily.com.cn]

Over-competition among Chinese construction companies

Xu, also general manager of China Tiesiju Civil Engineering Group, said China finished construction of 85,000 kilometers of highway in 2011 and will have 120,000 kilometers of railway by 2015.

He said that lack of future projects for domestic construction companies has lead to harsher competition within the industry.

Construction-related industries such as steel and cement are also being hit hard due to overcapacity.

“There will be no way out if they do not go global,” said Xu.

“If they go overseas, they will bring related companies overseas.”

Huge foreign reserve

China's central bank and foreign exchange regulator announced in January this year the establishment of an office in charge of handling trusted loans based on the country's $3.31 trillion in foreign reserves.

This measure will allow domestic financial institutions to expand their business overseas.