Recently, Mr. Wang Zuoju from the China Railway 20th Bureau came to our group to inspect and negotiate. The two sides had an in-depth conversation on international engineering and analyzed the development status and future development trend of international engineering under the guidance of the Belt and Road Initiative.

The development of the “Belt and Road” will be gradually promoted. From the perspective of specific partners, the regions involved in the initial phase will be countries and economies with relevant economic and trade cooperation or cooperation intentions with Asia, Eastern Europe and North Africa. The partners are expected to expand gradually and attract more countries interested in bilateral cooperation. At present, international engineering is still in a relatively early stage, and the projects are mainly concentrated in countries such as Asia, Africa and Latin America.

The competitiveness of Chinese enterprises has gradually increased, and their market share has steadily increased. The number of Chinese companies entering the list of the world's top 250 international contractors has increased to 65, which is the same as the number of enterprises selected in the previous year. The overseas turnover of 65 mainland enterprises totaled US$93.6 billion, an increase of 4.5%, and the growth rate slowed down, but it still far exceeded the average growth rate of the industry; the average overseas turnover of 65 mainland enterprises was US$1.44 billion, compared with the average turnover of last year. 1.38 billion US dollars increased by 4.4%.

On the other hand, the share of overseas contracting by Chinese construction companies still has room for improvement. The 52 European companies that were short-listed completed a total turnover of US$212.26 billion, and 65 Chinese companies completed US$94.62 billion, which is only 44.6% of the turnover of European companies.

Orders continued to fall, and the “Belt and Road” entered the harvest period. In the first three quarters of 2017, China’s newly signed contracts in 61 countries along the “Belt and Road” line amounted to US$96.72 billion, accounting for 57.5% of the newly signed contracts for China’s foreign contracted projects. It increased by 29.7% year-on-year. “One Belt and One Road” has broadened the development and investment fields of the construction industry, and guided the construction industry and related enterprises to expand their business scope to a broader international market.

Central enterprises are still dominated by the “One Belt, One Road” investment, and overseas orders are growing at a high rate. At present, the overseas engineering business is mainly dominated by central enterprises. In addition to Huawei Technologies Co., Ltd. and China National Petroleum Corporation, the top ten overseas investment and construction contract companies in 2016 are all construction enterprise head companies and their subsidiaries. In the first three quarters of 2017, overseas orders of all Chinese-style construction companies increased year-on-year, and some of the increase exceeded the overall order increase.

Risk control has become the core guarantee for the performance of international engineering companies. Due to the high risk of overseas engineering, Chinese construction companies generally face a period of running-in. Therefore, we measure risk control capabilities from two dimensions: priority is given to the central enterprise platform that has been cultivating overseas for many years. The sea is backed by the state, and it is in a strong position relative to the private enterprises. It has more experience and risk protection for various risk points. It pays attention to the changes in cash flow of international engineering companies, and the relative stable investment cash flow is relatively stable. It is more stable and the risk of future outbreaks is lower.