XCMG Attends B20 Summit

On September 3-4, 2016, Wang Min, chairman of XCMG was invited to attend the B20 Summit.

Founded in 2010, B20 (Business20), is a summit of business leaders from the G20 countries and an important supporting event for the G20 Summit. Its mission is to introduce global growth strategies and contribute advice on global governance on behalf of the industry and commerce circle for the G20 as contributions to strong, sustainable and balanced growth of global economy. 

This B20 Summit gathered more than 800 global business leaders, of which more than 140 were from global Fortune 500 companies and more than 100 were from the top 500 companies in China. In the afternoon of September 3, at the opening ceremony, members of the B20 and guests listened to Chairman Xi Jinping’s keynote speech, “A New Starting Point for China's Development, A New Blueprint for Global Growth”. The elites from the Chinese business circle who listened to the speech as guests mostly looked excited.

Wang Min said frankly, “It’s the first time that I have listened to Chairman Xi’s comprehensive description of the Chinese economy and profound understanding of the world economy at the B20. It’s the 11th G20, a critical node at which the initiatives and ideas proposed by Chairman Xi will, as far as I am concerned, come as a strong force to drive the world economy. I become more confident after hearing the speech.”   

Wang Min said, “Chinese construction machinery has been a most important part of the world construction machinery industry and shows good development momentum. We have been working hard to secure due share in the global market so as to introduce our green, environmentally friendly, and high-tech products to the users worldwide.”

When talking about “the Belt and Road” strategy proposed by Chairman Xi, Wang Min revealed that they now have many infrastructure projects corresponding to the strategy. For XCMG, it meant to go out with centrally-administered enterprises to jointly serve for the infrastructure construction along the “the Belt and Road”. XCMG benefited a lot from this initiative. It has a joint venture with the national railway company of Uzbekistan that made profit the first year it was founded. Thus, what XCMG is doing is to go out with centrally-administered enterprises and build joint ventures with local enterprises to launch projects.  

To avoid or change the problem of the company for being large but not strong or not excellent, Wang Min said more efforts would be needed in the supply-side structural reforms to embark on the path of transformation and upgrading. “Transformation and upgrading are the only road that XCMG has to go. We propose the new concepts of going international, lean, and sustainable and making out our deficiencies. What are our deficiencies? They are our weaknesses in medium- and high-end brands, high technology, international market layout, and after-market operation. XCMG has reformed its operation system around those deficiencies and saw rising sales revenues from the first half the year to August.”

In spite of the depressed industry, Wang Min was confident of the future development of the company. “If we follow this road and make up those deficiencies with determination, XCMG will start real transformation and upgrading. I’ve seen the light and become more confident. So, standing at about 30% now, we expect to increase the overseas revenue of XCMG by 50% in the next 3-5 years.”

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