(Photo 3: A professor delivers a speech at the Forum on Global Production Capacity and Business Cooperation held in Wuhan, central China's Hubei province on June 5.)
BEIJING -- International capacity cooperation is the division of labor again for China to participate in the international industry and also an attempt to promote rebalance of the world's economy. The China-proposed capacity cooperation aims to rebuild an open-type industrial distribution. It is an economic structural adjustment for China. The industrial "hollowing out" issue does not exist, said Cao Honghui, vice president of the research institute at China Development Bank, at the recent global production capacity cooperation forum held in Wuhan, central China's Hubei Province.
The "going global" of China's equipment manufacturing is an objective trend. "Going global" is an inevitable trend along with changes of a country's economic structure. China has come to the stage of "going global" from the textile industry, raw materials to the equipment manufacturing industry, according to Lv Zheng, professor at the Chinese Academy of Social Sciences.
The outbound investment can cultivate and create some demands, which can be supported by the domestic capacity, said Cao, adding that capacity cooperation is not completely capacity export. The outbound infrastructure construction and energy investments actually create demands, which can be met by the domestic capacity.
Cao said that the international capacity cooperation is the need to balance the economic structure, which cannot only resolve the imbalance of the domestic investment and consumption, but also resolved the imbalance between the internal and external structure. After more than three decades of efforts, China has accumulated some experience in industrial development which can be used for reference to other developing countries.
The implementation of the Belt and Road Initiative can help China explore the potential of foreign trade and build a new pattern in the opening-up to the outside world. The initiative has expanded the space for China's opening-up, said Chen Jiyong, professor at Wuhan University.
The initiative can strengthen spillover effect of China's industrialization. The 66 countries along the Belt and Road have seen uneven levels of industrialization. Therefore, the capacity cooperation will complement each other's advantages and realize mutual benefits. The capacity cooperation can also play a role in promoting China's economic structural adjustment, Chen added.
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