14 | Friday, November 27, 2020 HONG KONG EDITION | CHINA DAILY SOE MATTERS

RIGHT TRACK Energy Dual­circulation takes off at China Eastern SOE State­owned firm sets tone for other taps into airlines to survive Mexico, and thrive amid the pandemic Russia

By ZHU WENQIAN By ZHENG XIN [email protected] [email protected]

China Eastern Airlines, a Shang­ State­owned China Energy hai­based State­owned carrier, said it Engineering Group Co Ltd, or aims to help strengthen domestic Energy China, signed a con­ circulation in civil aviation and boost tract with Mexican energy com­ a dual­circulation development pat­ pany Aora Generacion Durango tern in the industry. for a 154­megawatt wind In line with the larger national project in Durango, Mexico, strategy, the domestic aviation mar­ this month. ket will serve as the mainstay, and The project will help Energy the domestic and international mar­ China to further ramp up efforts kets will promote each other. to develop its overseas markets The airline said with internation­ and exploit business opportuni­ al flights operating at low capacity ties offered by the Belt and Road due to COVID­19­related travel Initiative. restrictions, Chinese carriers should The wind power project will be increase their capacities in the based on an EPC — engineering, domestic market in the near term. procurement and construction The airline’s refreshed strategy is — contract. It is Energy China’s in response to the nation’s newly first wind project in Mexico as proposed dual­circulation develop­ well as the central and northern ment pattern. The strategy says Chi­ American market. na will mainly rely on “internal Above: Dancers wearing Tang travel products. According to the company, the circulation” or the domestic cycle of Dynasty(618­907) costumes For instance, Shandong Airlines Durango region has abundant production, distribution, and con­ stage a traditional performance has attracted more than 100,000 wind resources and is capable of sumption for its long­term develop­ near a China Eastern Airlines’ new customers to its unlimited producing 400 million kilowatt­ ment, and place equal emphasis on aircraft during a celebration at passes. Without flights, airlines hours of power each year. both the domestic and external mar­ Xi’an Xianyang International would be unable to generate any It will help reduce emissions of kets as engines of economic growth. Airport in Shaanxi province in marginal revenues, and certain carbon dioxide by up to 300,000 “Better domestic circulation of October. grounding and maintenance costs metric tons each year while sub­ flights serves as the foundation of WANG JIAN / FOR CHINA DAILY would make the financial situation stantially improving local ecolo­ both the dual circulation pattern acute, the carrier said. gy, the environment and the and the growth of China’s civil avia­ Left: China Eastern Airlines’ Qi Qi, an associate professor at overall energy structure. tion market,” said Shao Fengru, dep­ planes are on the tarmac at Guangzhou Civil Aviation College, Besides, the project will help uty director of the deepening reform Yantai Penglai International said domestic carriers should active­ Mexico to increase its new ener­ office at China Eastern Airlines. Airport in Shandong province ly respond to the country’s dual­cir­ gy installed capacity, reaching 25 “China has a great potential to in January. TANG KE / FOR CHINA DAILY culation strategy to achieve further percent of the total by 2025. expand domestic demand in city growth and steer clear of risks. clusters and metropolitan areas, as “Domestic carriers should speed up a growing number of middle­in­ Administration of China. that used to serve long­haul interna­ measures of State­owned enterprises the formation of a new development come consumers will further stimu­ Globally, Asia is still in recovery tional flights. Domestic carriers have helped smooth circulation and pattern in the air travel market, where In addition to late demand by taking more flights. mode. Europe and North America, should seek new demand to boost stabilize growth,” Shao said. the domestic major cycle serves as the Besides, the urbanization rate is still where confirmed infection cases are growth, industry experts observed. To build China into an aviation main body, and airlines should fur­ constructing low and development in different still rising, have been struggling On June 18, China Eastern became powerhouse, major domestic com­ ther revitalize resources of small and renewable energy areas is uneven, and there exists with new travel restrictions. Overall, the first domestic carrier to launch mercial airlines and cargo companies medium­sized airports,” Qi said. untapped demand,” she said. the overseas air travel market has its weekend­unlimited flight pass in should further increase their compet­ “For the Guangdong­Hong Kong­ projects overseas, As the contagion increasingly recovered to only 40 percent to 50 China. Passengers with the pass, itiveness, innovation and ability to Macao Greater Bay Area, it is one of domestic energy comes under better control in Chi­ percent of the pre­pandemic level, which costs 3,322 yuan ($506), can minimize risk, China Eastern said. the areas that has the biggest advan­ na, the country has been leading the according to the International Air take flights to a Chinese mainland Subsequently, several Chinese tages to achieve better domestic cir­ companies have global recovery in the air travel mar­ Transport Association. city with no limited times on week­ carriers, including China Southern culation, as the area boasts certain been directly ket, with the number of scheduled With a sharp decline in the ends before the end of this year. More Airlines, Hainan Airlines, Shandong advantages to introduce more inno­ flights in the domestic market till demand of international air travel than 100,000 such passes were sold. Airlines, Xiamen Airlines and vative and digitalized products, purchasing mid­November reaching about 80 market, the domestic market has “The move has helped drive domes­ Spring Airlines, introduced various launch more flights, and establish renewable energy percent of the level recorded last excess capacity and oversupply of tic economic circulation significantly. unlimited flight passes on domestic world­class civil aviation infrastruc­ year, according to the Civil Aviation aircraft, especially wide­body planes The deepening reform and innovative routes, and saw brisk sales of their ture,” he said. assets in recent years.” Wang Ziyue, an analyst at Tie­ups with private, foreign businesses to lift FDI inflows research firm BloombergNEF Wang Ziyue, an analyst at research firm BloombergNEF, By ZHONG NAN in Beijing and such as China National Chemical said Mexico is the second­largest LIU MINGTAI in Changchun Corp and China Eastern Airlines dur­ wind power market in Latin ing the third CIIE, Honeywell Inter­ America and enjoys abundant More foreign direct investment will national Inc, a US­based industrial wind resources. flow into China following the coun­ conglomerate, is planning to either “In addition to constructing try’s call to State­owned enterprises to expand production lines or better renewable energy projects over­ work with both private and foreign optimize resources of its 21 plants in seas, domestic energy compa­ companies in order to deepen the China, in order to enhance productiv­ nies have been directly reform and opening­up policy, global ity and serve customers in a more effi­ purchasing renewable energy business leaders and experts said. cient manner, said Scott Zhang, assets in recent years,” he said. They attributed their prediction president of Honeywell China. Guided by the State­owned to the country’s complete industrial As China sealed a big­ticket free Assets Supervision and Adminis­ chain and global market presence. trade deal with partner countries tration Commission of the State China has accelerated a new strat­ this year, Liang Jun, president of the Council, Energy China functions egy — the dual­circulation develop­ Guangdong Association of State­ as an energy engineering con­ ment pattern — in which the owned Capital which is based in glomerate with a presence span­ domestic and international­focused Guangzhou, said Chinese compa­ ning projects in fossil fuel power, economic engines complement nies must not only be aligned with hydropower, nuclear power, new each other. the country’s goals for the develop­ energy and power transmission. This is expected to create more ment of the domestic economy, but This month, Energy China has opportunities and space for foreign also pay close attention to global also signed an EPC contract with companies to develop in China, and commercial trends. British energy company Green cooperate with Chinese counter­ To better adapt themselves to the Oil Resources Ltd for the Bash­ parts, especially SOEs, said Joseph new environment, it is necessary for kortostan oil sludge remediation Han, managing director and board CRRC employees work on an assembly line in Yibin, Sichuan province, in May. SOEs to strategically develop entire plant project in Russia. member of Knorr­Bremse Rail Vehi­ ZHUANG GEER / FOR CHINA DAILY value chains surrounding their prod­ The project, located in Bash­ cle Systems (China). ucts and services, while promoting kortostan, enjoys a convenient To put the country’s economic events such as the China Interna­ the country’s largest rolling stock its mature technologies for building lean management, innovation and geographical location, rich natu­ growth on a firmer footing, the State tional Import Expo. manufacturer and railroad operator, high­speed trains, Wang Feng, vice­ reform, as well as building partner­ ral resources and abundant labor Council, China’s Cabinet, released a The majority of China’s 98 cen­ during the 14th Five­Year Plan peri­ president of CRRC Changchun Rail­ ships with more private and overseas resources. The project will adopt guideline in August to roll out more trally­administered SOEs, including od (2021­25). way Vehicles Co, a subsidiary of companies to remain competitive domestically made equipment to measures to better protect foreign China National Petroleum Corp, “With the new innovation facility CRRC, said his company is ready to and gain more sales access at both recycle the polluted oil and silt to trade entities, support the local COFCO Corp and China National in Beijing, we will focus on connect­ take orders for customized high­ home and overseas markets, said abstract the residual oil and have growth of foreign companies, and Pharmaceutical Group Co, had all ed systems, next­generation eco­ speed trains, in line with the technical Chen Bin, executive vice­president of it refined into crude for sale. keep supply chains stable. signed purchase and cooperation friendly products and life­cycle cost standards and operational require­ the Beijing­based China Machinery The project, upon completion, The guideline urged more sup­ deals with foreign companies such reduction solutions in the Chinese ments of different parts of the world. Industry Federation. is expected to improve the local port for high­tech industries and as Saudi Arabian Oil Co, Mitsubishi market over the long run,” he said. In addition to CRRC Changchun’s “We expect SOEs to build more ecology, environment and the stressed the need to encourage for­ Electric, Cargill Inc, SAP AG and Knorr­Bremse currently runs export­oriented efforts to build a scientific and assessable cost and energy structure, and will mark eign investors to invest in China. Microsoft Corp during the third manufacturing, testing and innova­ new type of train with a top speed of performance management systems fresh inroads of Energy China Welcoming China’s new thinking, CIIE held in Shanghai early this tion facilities in 13 Chinese cities, 400 kilometers per hour, with Rus­ centered on institutional innova­ into the Russian market, said the Knorr­Bremse said it is eager to stay month, said the State­owned Assets including Wuxi, Jiangsu province, sia as the target market, the group’s tion, management transformation company. closer to its clients such as China Supervision and Administration and Qingdao, Shandong province, other operations in Qingdao, and cost optimization,” he said. Shanxi Electric Power Engi­ Railway Rolling Stock Corp. Commission of the State Council. employing around 4,600 employees. Shandong province, and Tangshan, “It will be fairly practical for SOEs neering, a subsidiary of Energy The German brake specialist and Han of Knorr­Bremse said oppor­ It will promote vocational educa­ Hebei province, have been carrying to improve cost and performance China, has also recently helped supplier of rail and commercial tunities abound in China thanks to tion in China’s railway service and out research and development of management, enhance the compre­ Thailand build a solar­powered vehicle systems said it will set up a well­developed high­speed railway manufacturing sectors by working the new train, targeting the needs of hensive effect of reforms and boost parking lot to meet part of the research and development center in networks, and a fast­growing metro with these two Chinese companies European and Southeast Asian mar­ technological innovation.” electricity demand during peak Beijing in 2021, and continue to market, so the company will and also universities across the kets, Wang said. times and provide power for the showcase its latest solutions and enhance its partnership with CRRC country in the coming years. Apart from signing a number of Contact the writers at charging piles of new energy products in China’s major trade and China State Railway Group Co, Supported by global partners and business contracts with China’s SOEs [email protected] vehicles, it said.