Cedar Holdings Vice President Han Gang Talked About The Layout And Industry Development Of "One Belt And One Road": Simply Relying On Sales And Trading, There Is No Big Prospect.

As the world's five hundred largest private enterprise growing up in Guangzhou, cedar Holdings has become a beautiful business card of Guangzhou's "Millennium merchant capital". Recently, it has appeared on various international occasions with the image of "Guangzhou private enterprise representative".

Under the dual opportunities of "one belt and one road" initiative and "Guangdong, Hongkong and Macau", the supply chain group of cedar's supply chain is heading for the two directions of "bigger and stronger supply chain finance" and "comprehensive internationalization". Cedar "plans to achieve the top five in the international commodity market in three years", with the goal of becoming "China's Glencore".

In April 24th, before the "International Cooperation Summit Forum on one belt and one road", in twenty-first Century, the economic news reporter interviewed Han Gang, vice president of cedar holdings group and President of the supply chain group of cloud communications. He had a dialogue on the layout of the market and the opportunities and challenges facing the development of the supply chain finance business.

Speaking of the Zhongjiang trust acquisition which is highly concerned by the market, Han Gang said that the key to Zhongjiang's trust development strategy is supply chain finance. At present, cedar has formed a consensus on the new business model, and the specific system of playing and organizational structure is ready. In the second half of this year, cedar will "attack" in the new business mode, and expect to see new achievements by the end of this year and early next year.

Have their own supply chain along the line.

Twenty-first Century: what is the layout of cedar in the "one belt and one way" market?

Han Gang: cedar has been developing in the "one belt and one way" market in recent years. The strategic cooperation reached by the Davos industry and Commerce Association in Ukraine this winter is only a small part of the layout. The two sides will further develop the Ukraine market and better sell Ukraine products to China.

Our layout began in the past few years, including the acquisition of Integra, a Swiss based company last year, which is a 30 year old international chemical supply chain network. We have achieved 51% holdings. It has outlets in Singapore, Europe, the Middle East, South Korea and other places. Through mergers and acquisitions, we have realized that we have our own supply chain network along the "one belt and one road". This supply chain focuses on chemical products, and can better cooperate with our Cheung Cheung Tengda chemical enterprises. The network can better sell products along the "one belt and one way" market. At the same time, in the "along the way", especially in the Middle East, we can get better raw materials to meet our production needs through this network.

In terms of mineral products, we have also done a lot of work in the market development of "along the way" market, such as having iron ore in Mongolia, actively participating in iron ore development in Russia, and participating in non-ferrous metal development in African countries.

Twenty-first Century: as the second largest economy in the world, China often falls into the world of "buying what is expensive and selling cheap" in the international bulk commodity market. What is the reason?

Han Gang: China is the absolute largest buyer in the international bulk commodity market, such as iron ore, copper, aluminum and other commodity procurement, China accounts for more than half of the world's exports. For example, seventy or eighty of the world's iron ore shipping trade has reached the Chinese market.

After 40 years of reform and opening up, we gained the status of the world's largest manufacturing power, but we started late in resource protection. Because there is no controllable resources, in other words, there is no controllable supply chain, resulting in "what to buy and what to sell, what to sell cheap".

What we are going to do in the future is actually the same as the national strategy. I believe that the national "one belt and one way" initiative is also an early awakening for Chinese enterprises. We need an industrial chain and supply chain of a global system that we can better control, so as to better support our manufacturing industry and enhance our competitiveness.

Control the "smile curve" at both ends.

Twenty-first Century: cedar's goal is to become "China's Glencore". How far is the distance between China's supply chain enterprises and world-class competitors?

Han Gang: Frankly speaking, we still have a long way to go. There is still a long way to go. Although our manufacturing industry has developed to a certain extent, there are still some gaps in supply chain enterprises.

After decades of development, there have been a number of hundred billion supply chain enterprises like cedar, but we are still a small brother compared to the hundreds of billions of supply chain enterprises such as "Glencore". We must recognize our shortcomings, and work overtime in network construction, resource protection and resource development, and strive to make up the supply chain and truly enter the world.

Twenty-first Century: what areas do Chinese enterprises need to strengthen in building their own competitiveness?

Han Gang: first of all, under the new situation, the whole commodity supply chain industry must have a clear understanding, that is, simply relying on buying and selling, there is no big prospect. In building competitiveness, we need to add value to the whole chain of supply chain, to each service link, to complete various services to customers, and to gain profits, so as to enhance the competitiveness of the supply chain.

Second, in the supply chain "smile curve" at both ends of the control area, we must have a foresight and start early. The most upstream resource development and control should be done, and the development and construction of downstream product network, especially the development and construction of internationalized network, need to be moved.

From the perspective of China's supply chain system, these two parts are actually our weaknesses. Whether it is cedar or other enterprises with a sense of national responsibility, I suggest that we should make active efforts at both ends to make some contributions to our own development as well as the development of the national supply chain.

Supply chain finance is the best.

Twenty-first Century: how does cedar apply to new technologies such as big data and block chains? What role does it play in building the leading enterprises in China's modern intelligent supply chain?

Han Gang: now the competition between enterprises and enterprises has gradually developed into a competition between chains and chains, that is, competition between supply chain and supply chain, both at home and in the global market.

After the development of the "one belt and one way" initiative, a new supply chain system will be formed. Of course, China is one of the core members. When the new supply chain system is established, it will form a "concurrence" relationship with the traditional supply chain system, both competition and cooperation.

In the competition of supply chain system, what is competition from a macro or micro perspective? The end of competition is technology and efficiency. Which chain has higher efficiency and better service, which chain will be competitive, and the enterprises in the chain will be competitive, and finally they will win in the competition.

How to improve efficiency in competition? Naturally, it depends on technology. Now, the development and application of big data, Internet, Internet of things, block chain and other technologies provide opportunities for the improvement of supply chain efficiency. Which chain, which enterprises can first open up the situation in application, may win the first mover advantage in competition.

Cedar has spared no effort to invest in technology over the years. We hope to play a leading role in the domestic and international commodity supply chain. Cedar and the United States Corporation, using big data technology and observing the amount of oil in the global oil storage tanks by using meteorological satellites, are an attempt to apply the technology to the supply chain system. We are very confident that these technological means will further enhance the capability and efficiency of our supply chain services.

Twenty-first Century: what is the development of cedar's supply chain finance business? What is the future layout?

Han Gang: Recently, the chairman of our group's board of directors interviewed the Zhongjiang trust investors in Nanchang, and talked about the future development strategy. The development strategy of Zhongjiang trust is also the supply chain finance. The whole cedar group, whether it is financial institutions or industrial groups, is doing business around the supply chain finance and serving our physical enterprises.

In this area, we will make some very advanced attempts. These business models may also be the leading ones in domestic comprehensive enterprises. When these patterns have been further promoted, I am very confident that it will certainly push the whole cedar to a new level. By combining supply chain finance with traditional customer groups and core businesses, we serve thousands of customers. The goal of the group is to serve thirty thousand enterprises, and now we are heading towards the goal. Supply chain finance is our most powerful starting point.

As for the specific business models, we have reached a consensus within the country, and the whole set of things, including the specific plans, measures, tactics, including the organizational structure and the incentive system, are well prepared. It should be said that in the second half of this year, we will make full efforts under this new business mode, and expect some new achievements at the end of this year or early next year.

Don't worry about Guangdong's competitiveness.

Twenty-first Century: what challenges do we have to expand in the "one belt and one way" market? How can enterprises, industry and regulators better cooperate with each other?

Han Gang: enterprises that are accustomed to the domestic environment may encounter many obstacles when they go out, including the most basic language barriers, as well as their adaptability to foreign legal and cultural environment. In these areas, we need more support from relevant agencies.

Originally, there is a phrase called "tug of war to the sea". Supply chain enterprises often go out with the manufacturing enterprises. But sometimes there are still some political risks overseas. For example, some time ago, some countries reported that some countries directly nationalized the mining rights of mines. In this case, we need the support from overseas embassies and consulates and related institutions.

In my view, "tug of war to sea" is not only a Chinese enterprise embracing the sea, but also the government's policy-making and regulatory departments, and jointly tug together to sea to form a joint effort to cope with the competition in the complicated political, economic and even military environment abroad.

We hope that we can strengthen our support for commodity supply chain enterprises on policy, support the enterprises of head supply chain to become bigger and stronger, support enterprises to go out, enhance the bargaining power of China in the commodity sector through global resource allocation, and actively participate in global commodity supply chain competition.

Twenty-first Century: Global trade protectionism is rising. There is public concern that Guangdong, a big manufacturing province, will face the pressure of manufacturing transfer in the process of economic transformation and upgrading. As a top 500 local company in Guangzhou, how does cedar look at this problem? What can cedar do?

Han Gang: first of all, I am not worried about Guangdong. Through the arduous struggle of the people of Guangdong for 40 years, Guangdong has laid a solid foundation for manufacturing, and this advantage will not be easily lost. There may be some low-end manufacturing industries that rely on cheap labor to transfer to the mainland and even to other countries with lower cost, but this is not a big driving force for transformation and upgrading.

In this regard, Guangdong has many talents and mechanisms, and the Guangdong government is also actively transforming. In the past few months, under the leadership of the Guangzhou municipal Party committee and municipal government, we have actively promoted overseas participation in the Davos forum, China Development Summit Forum and Boao Asia Forum. We can feel the positive action of Guangdong government and Guangzhou municipal government in the transformation process. There is such a system from the government to the private sector. I am not worried about the competitiveness of Guangdong.

As for cedar, it will continue to take root in Guangzhou, and commodity supply chain service is the main starting point. We must first serve a large number of small and medium-sized enterprises in the supply chain system of Guangdong Province, and support the development, transformation and upgrading of the big bay area of Guangdong, Hong Kong and Macao. The Great Bay area of Guangdong and Hong Kong provides a golden opportunity for Guangdong and cedar. We will seize the opportunity to win the development of the enterprises and the local economic development.

From a global perspective, manufacturing is the foundation of national strength, and whoever owns modern manufacturing industry has the right to speak. The supply chain is the cornerstone and blood of modern manufacturing industry. Cedar, a local enterprise growing up in Guangzhou, hopes to continue to develop in Guangzhou and become a world-class real estate enterprise, and ultimately achieve our goal of benchmarking -- becoming "China's Glencore".