Factory and infrastructure initiative to ‘top agenda’ during Xi Jinping’s trip to Central Asia, eastern Europe
China wants to develop factories overseas to help deal with massive overcapacity in industries such as steel
China will promote its policy of developing factories and infrastructure projects overseas during President Xi Jinping’s trip to Central Asia and eastern Europe later this month.
The measures form part of China’s efforts to deal with its massive industrial overcapacity in sectors such as steel and to increase markets for its goods.
The president will also promote China’s “Belt and Road” initiative to develop its trade and economic ties overseas during his trip, according to a senior Chinese official.
Xi will pay state visits to Serbia, Poland and Uzbekistan from June 17 to 22. He will then attend the 16th meeting of the council of heads of state of the Shanghai Cooperation Organisation in Tashkent, the capital city of Uzbekistan, on June 23 and 24. The organisation is a regional political bloc covering China, Russia and Central Asian nations.
China’s export of domestic manufacturing overcapacity was set to top the agenda during Xi’s three-nation visit, said Liu Haixing, Assistant Minister of Foreign Affairs, at a press briefing on Wednesday.
It will be the Chinese president’s second visit to central and eastern Europe in three months since his last trip to the Czech Republic in March.
China’s efforts to move industrial overcapacity overseas include Hebei Iron & Steel Group’s signing of a 46 million euro (HK$400 million) agreement in April to buy a loss-making Serbian steel plant.
Serbia’s Prime Minister Aleksandar Vucic has said he hopes the sale of the plant will be completed by the time of Xi’s visit.
Nuclear cooperation will be discussed during the Chinese president’s trip to Poland as China encourages domestic companies to invest in the eastern European nation.
The two countries are expected to sign a series of agreements, including on banking and aviation.
It could bring more direct flights between the two countries as Beijing deepen its cooperation with Poland, which is China’s gateway to Europe while developing its Belt and Road initiative, said Li Huilai, Assistant Minister of Foreign Affairs.
China and Uzbekistan are expected to discuss cooperation over the Central Asia–China gas pipeline, which runs through the Central Asian nation.
China is also investing in infrastructure in the country, including jointly building an industrial park and the longest railway tunnel in Central Asia.
The Shanghai Cooperation Organisation summit will begin procedures to admit would-be members India and Pakistan, said Li.
He gave no timeline on when the two countries might be able to officially join the organisation.
Li declined to confirm whether Xi would hold separate meetings with Russian President Vladimir Putin on the sidelines of the meeting.
But he said the two countries have been working closely on a series of agreements to be signed during Putin’s forthcoming visit to China, which is expected to take place in late June.
