Li inks $100b of foreign deals this year

Visits help promote large projects through strategic consensus: expert

Leaving Thailand on Saturday, Chinese Premier Li Keqiang wrapped up his last foreign visit of the year, following a series of trips that experts say highlighted a pragmatic approach to diplomacy that saw him signing deals worth over $100 billion over the course of five foreign tours.[Special coverage]

The key cooperative initiatives launched by China and other countries this year have primarily been in the areas of infrastructure and energy, according to experts. Li has sought to develop these areas during official trips to 12 countries including Russia, Germany, Nigeria and Kazakhstan.

In addition to the deals sealed by President Xi, Li carried out specific projects that aim to draw foreign investment into China and expand overseas markets for Chinese companies, Ma Zhengang, a foreign policy advisor to the Ministry of Foreign Affairs, told the Global Times.

Facing accusations of "new colonialism," which implies that China has exploited the resources of developing countries, it is hard for businesses to negotiate with their foreign counterparts alone. Therefore, the government is needed to help companies promote large infrastructure projects by reaching a strategic consensus, said Zhu Jiejin, an international relations professor at Fudan University.

The largest overseas railway project, valued at $11.97 billion, will be developed by the China Railway Construction Corporation in Nigeria. The deal was arranged during Li's visit to the country in May.

Memorandums of understanding regarding railway construction have been inked with other countries, including Russia and Thailand, during Li's visits to those nations.

"High-speed railway projects featuring advanced technologies not only generate a great deal of added value, but also drive regional development and connectivity, which corresponds to the 'One Belt and One Road' strategy put forward by Xi," Ma said.

China is building a pan-Asian high-speed railway network to improve its links to neighboring nations including Myanmar, Vietnam, Cambodia, Thailand, Malaysia and Singapore.

Li also encouraged other manufacturing sectors to expand abroad. He promoted the domestically made Xinzhou-60 plane during his stay in Ethiopia and visit to the African Union headquarters there in May.

While visiting Kazakhstan last week, before attending the Shanghai Cooperation Organization meeting that was held in the Central Asian giant, Li said China is eager to export steel, cement, glass and electricity.

"On one hand, export can help with domestic industrial restructuring as China has excess production capacity in its domestic manufacturing sector; on the other hand, many developing countries are in dire need of infrastructure to develop their economy. The needs of both sides are met through this kind of cooperation," Zhu said.

However, due to China's great demand for energy, Li also advocated furthering cooperation in the energy sector, Ma said.

The China National Offshore Oil Corporation signed a $20 billion liquefied natural gas deal with British oil giant BP when Li visited the UK in June.