Chinese enterprises should be risk-prepared for US infrastructure market
ANBOUND
On April 12th, the One World Trade Center in New York held a China-US Infrastructure Investment Seminar to discuss on how to participate in US-based infrastructure public-private partnerships (PPP). The US government said the Trump administration attaches great importance to investment in infrastructure, including public-private partnerships, and investment will be open-up to Chinese companies. However, Anbound researchers believe that different from the PPP projects led by the Chinese government and state-owned enterprises mushrooming everywhere, the US PPP project approval is stricter with more standardized regulations; even if the US federal government actively promote it, it will still face challenges from state or municipal authorities; so Chinese enterprises need to put this into consideration. In addition, in recent years, China Railway Construction Corporation's Saudi Arabia light rail project and China Railway Group’s investment in Poland A2 highway project have experienced a series of losses; this gives Chinese infrastructure enterprises’ overseas expansion higher requirements to follow.