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Macao has always been using its unique function as a Commercial and Trade Co-operation Service Platform between China and Portuguese-speaking Countries in assisting enterprises from Mainland China to expand to the markets of the Portuguese-speaking Countries. Recently, Chinese central state-owned enterprises (SOEs) have adopted the principles of marketisation and “going out”, promoting the rapid development of the industrial sectors of all parties involved.
Macao Image interviewed two guest speakers that participated in the “Summit on Chinese Central SOEs Supporting Macao as Co-operation Platform between China and Portuguese-speaking Countries”. They shared their valuable experience gained from developing businesses in Portuguese-speaking Countries.
State Grid Corp. of China Assistant Chief Engineer and Department of International Co-operation Director Zhu Guangchao said taking part in the summit had been rewarding. Mr Zhu said it had given enterprises a great opportunity to exchange ideas and communicate with people from Portuguese-speaking Countries who represented various industries and enterprises. He said this helped him get a better understanding of the markets in Portuguese-speaking Countries and the investment and infrastructure development potential there for starting businesses.
State Grid has invested US$7.5 billion in Portuguese-speaking Countries, most of it in Brazil and Portugal. Judging from the experience of State Grid in investing in Portuguese-speaking Countries, Mr Zhu said there was huge potential for Chinese enterprises to invest, procure and launch industrial capacity co-operation in Portuguese-speaking Countries, as well as establishing international trade and economic co-operation.
State Grid Corp. Assistant Chief Engineer and Department
of International Co-operation Director, Zhu Guangchao
Mr Zhu said the “Belt and Road” initiative let SOEs play an important role in putting the national development strategy into action. He believes State Grid will have good opportunities for development in Portuguese-speaking Countries.
In investing in Portuguese-speaking Countries markets, State Grid has found that demand for new infrastructure is high in countries such as Portugal and Mozambique. State Grid is a leader in the construction and operation of power grids and can share its experience in developing and promoting infrastructure in those countries.
The interconnection of infrastructure is a key aspect of the “Belt and Road” initiative. Mr Zhu believes the prospects for the development of infrastructure in Portuguese-speaking Countries are bright, which provide opportunities for enterprises to continue to grow. He said that when investing in Portuguese-speaking Countries, Mainland China enterprises should make use of the advantages they have and seek partners in such markets so they can match their operations to those markets for mutual benefit.
Mr Zhu pointed out that Macao should keep up its good performance as a bridge between Mainland China and Portuguese-speaking Countries. State Grid is the biggest shareholder in Redes Energéticas Nacionais (REN), an energy company in Portugal. It is also one of the two biggest power transmission companies in Brazil, the other being Eletrobras. During its development, State Grid learnt about the importance of the role played by Macao, by virtue of its experience of the Chinese and Portuguese languages and cultures, and its connection with Mainland China and Portuguese-speaking Countries. The performance of that role contributed to the establishment of trust between Chinese enterprises and Portuguese-speaking Countries. Mr Zhu said Macao was uniquely qualified to play such a role in relationships between Mainland China and Portuguese-speaking Countries.
Fostering talent, exploring opportunities
Bank of China Ltd. Macau Branch (BoC Macau) Deputy General Manager Ip Sio Kai said the bank was constantly adapting its structure and had recently set up two teams, focused on corporations and financial institutions. In 2015, the bank established a Portuguese-speaking team that focuses on finding new business opportunities and developing banking talent. Mr Ip said the Portuguese-speaking team has grown from a small group into a whole department, which provides financial market information and renders services to financial institutions, corporations and individuals. Mr Ip said that through fostering professional talent, BoC Macau is laying the foundation for business development.
Bank of China Macau Branch Deputy General Manager, Ip Sio Kai
Mr Ip said Macao banks takes on more speakers of Portuguese nowadays than they did before, although his own bank already had several employees with the requisite fluency.
BoC Macau has played a part in several mergers or acquisitions in Portuguese-speaking Countries that are manifestations of the Mainland China’s “going out” strategy. The bank has established business relationships with many of its counterparts in Portuguese-speaking Countries, where employees fluent in Portuguese can prove their worth.
BoC Macau serves an increasing number of businesses in Macao and Mainland China. Mr Ip said the Summit on Chinese Central SOEs Supporting Macao as Co-operation Platform between China and Portuguese-speaking Countries was crucial, allowing those taking part to exchange ideas and promote new co-operation opportunities. He believes companies can make better use of Macao’s advantages, which are under-utilised.
Representatives of the Macao Government and various parts of the private sector in the city have repeatedly visited Portuguese-speaking Countries in recent years in an effort to promote Macao as a platform. Enterprises can gain access in Macao to a wide range of financial services which can help them do business. In view of recent conditions, Macao is being used increasingly as a means to boost business. Mr Ip said that, by making use of Macao as a platform, BoC Macau would strive to render commercial and trade, financial and renminbi clearing services to companies in Portuguese-speaking Countries. Changes in international economic and trading conditions have caused some volatility in the renminbi clearing business BoC Macau does. Mr Ip said his bank was adjusting and consolidating its renminbi clearing business after a phase of rapid development. Even so, the business the bank does with Portuguese-speaking Countries grew by more than 30 percent in 2016, he said.
Macao takes centre stage
The Summit on Chinese Central SOEs Supporting Macao as Co-operation Platform between China and Portuguese-speaking Countries was held in the Venetian Macao-Resort-Hotel on 31 May 2017. The event allowed for the strength of SOEs to be integrated with the unique advantages of Macao, supporting the joint exploration of international markets, while assisting the industrial and commercial sectors in Portuguese-speaking Countries to commence business co-operation with SOEs in the Mainland China market.
The summit was hosted by the Macao SAR Government and organised by the Macao Secretariat for Economy and Finance. The State-owned Assets Supervision and Administration Commission (SASAC) and the Liaison Office of the Central People’s Government in the Macao SAR supported the event, and the Macao Trade and Investment Promotion Institute co-organised it.
During the event, Macao Chief Executive Chui Sai On, Party Committee Secretary of SASAC Hao Peng, Liaison Office of the Central People’s Government in the Macao Special Administrative Region Director-General Wang Zhimin gave speeches. Secretary of State of Internationalisation of the Portuguese Ministry of Foreign Affairs Jorge Costa Oliveira delivered a thematic speech.
Seven contracts were signed at the event, covering co-operative projects by SOEs and Macao enterprises in the Portuguese-speaking Countries of Angola, Cape Verde, Mozambique and Portugal. The projects are in various fields, such as electricity generation, railways, tourism, finance and road building.
During the exchange session, representatives of Macao enterprises, SOEs and Portuguese-speaking Countries attending the summit gave their opinions during two discussion panels: “How to Strengthen Collaboration with Portuguese-speaking Countries Under the Belt and Road framework”, and “How to Utilise Macao’s Function as a Platform between China and Portuguese-speaking Countries to Assist Mainland Chinese and Macao Enterprises to ‘Go Out’”.
Representatives of Macao enterprises, SOEs and Portuguese-speaking Countries exchanged opinions at the summit
