A delegation from the Chengdu Municipal Government visited the office of EUCBA in Brussels on May 19, 2017. Gwenn Sonck, Secretary General of the EU-China Business Association (EUCBA) and Executive Director of the Flanders-China Chamber of Commerce (FCCC) received the delegation. The aim was to discuss cooperation between both sides. Lothe Verstraete, Deputy Director Inward Investment, Flanders Investment & Trade, gave the delegation a presentation of the advantages of Flanders, and Geert Regelbrugge, Deputy Director of the Province of Flemish Brabant presented Flanders Smart Hub and their cooperation with their twinning city Chengdu.

The Belt and Road Forum for International Cooperation closed in Beijing after its second day on May 15. It was the biggest diplomatic event hosted in China this year, attended by about 1,200 delegates from 110 countries, including 29 visiting heads of state and government leaders. Vice Premier Kris Peeters represented Belgium.

FCCC/EUCBA was represented by Mr Philippe Van der Donckt, Vice Chairman of the Flanders-China Chamber of Commerce (FCCC) and the EU-China Business Association (EUCBA) and Business Development Director of Umicore. The Port of Antwerp, the Port of Zeebrugge and Katoennatie also participated.
The Belt and Road Initiative has a near global focus, although the prime focus is on the Eurasian continent. Cash-strapped states of Asia, Africa, Latin America and Europe’s south and east welcomed an injection of Chinese funds and the prospect of more exports to China. In contrast, the United States has showed little interest, Japan has upped the speed of its own regional connectivity plans, and the European Union has given the initiative a lukewarm welcome. Russia, meanwhile, has decided to link the initiative with its own regional economic framework, the Eurasian Economic Union. The most enthusiastic supporter of the initiative in Western Europe is Great-Britain, but countries such as Germany, Italy and Spain are more cautious. They refused to co-sign some forum documents, saying the initiative was not clear on public procurement and social and environmental standards. The head of the U.S. delegation, Matthew Pottinger, urged China to insist from the start on transparent government procurement. “Transparency will ensure that privately-owned companies can bid in a fair process, and that the cost of participating in tenders will be worth the investment,” he said.

President Xi Jinping said in his closing address that more than 270 cooperation projects or agreements had been signed during the summit. The joint communique was signed by 30 countries. It said the countries would promote “practical cooperation on roads, railways, ports, maritime and inland water transport, aviation, energy pipelines, electricity and telecommunications” to boost growth, and work on a long-term stable and sustainable financial system. At the start of the Forum Chinese President Xi Jinping had promised to inject at least USD113 billion in extra funding for the initiative. On the sidelines of the Forum, China signed agreements with 68 countries to jointly develop infrastructure along the new Silk Road trade routes. The next Silk Road summit is set for 2019.

Belgian Vice Premier Kris Peeters witnessed the loading of a luxury Volvo sedan onto a container in Heilongjiang province – the start of China-made cars being exported to fulfill Western European demand. Volvo Car Group plans to ship the new Volvo S90, manufactured at its Daqing plant, to Ghent by train, linking the Eastern and Western ends of the Silk Road Economic Belt. “By visiting Volvo’s Daqing plant before attending the Belt and Road Forum for International Cooperation in Beijing, I want to gain an intuitive understanding of achievements brought by the Belt and Road Initiative. This plant has been operating very successfully,” Vice Premier Peeters said. During this visit, Peeters focused on Volvo’s industry-leading manufacturing systems, such as the Scalable Product Architecture platform (SPA). Hao Huilong, Vice Governor of Heilongjiang said: “This is a perfect example of shared growth and cooperation under the Belt and Road Initiative.” The company’s exports will rely on the China Railway Express, taking 44 days fewer than by sea, allowing the plant to respond quickly to European market needs. The train link will not just save shipping costs, but more importantly drive collaborative development based on local advantages in both Daqing and Ghent, allowing Volvo to achieve rapid growth both in Asia and Europe. “The all-new Volvo S90 luxury sedan produced at the Daqing plant has officially been exported to the United States since April,” said Yuan Xiaolin, Senior Vice President of Volvo Car Group and President & CEO of Volvo Car Asia Pacific. “China-made vehicles are now able to compete in the global markets to serve consumers worldwide,” he added, as reported by the China Daily.

More wholly foreign-owned enterprises (WFOEs) are registering private fund management (PFM) firms. Their number is now estimated to be between 20 and 50, and growing. By the end of this year, PFM firms of the WFOE variety are expected to launch 30 investment products. Lawrence Au, Executive Advisor for Asia Pacific with BNP Paribas Securities Services, said the gradual establishment of foreign-owned PFM firms in China would mean that investors will have more choices, and the entire capital market will get more diversified. In June 2016, China’s securities and asset management regulators had jointly announced the WFOE policy, allowing foreign businesses access to various Chinese markets. On May 5, Fidelity International’s Shanghai-based PFM firm, a WFOE, launched its first private fund in China. It is also the first global asset manager to launch a private fund in China. “Undeniably, the renminbi bond market is key to the future of Asia’s bond markets. It will play a big role in global financial markets for many years to come”, said Freddy Wong, Fixed Income Portfolio Manager of Fidelity International, the China Daily reports.

Foreign direct investment (FDI) in China retreated 4.3% from a year ago in April to CNY59.91 billion, in contrast to a 6.7% increase in March. Last month, 3,343 new foreign-funded enterprises were set up, up 42.7% year-on-year. Total FDI in the first four months of the year slipped 0.1% year-on-year to CNY286.41billion. Nearly two thirds of investment went to the service sector, where FDI increased 5.5% year-on-year in the first four months. Investment in the construction sector soared 146.3%, followed by a nearly 40% rise in transport services. Investment from the European Union grew 9.3% in the first four months.