Although China still has a long way to go in catching up with the US in terms of technology and productivity, the overall production capacity of its manufacturing industry is about 1.4 times that of the US. The "go global" strategy can help China export its excess capacity to many developing countries on the principle of mutual benefit.

Chinese enterprises, in fact, have made fast progress in entering the global market over the past decade. China has few parallels in terms of cost-performance ratio in construction projects, for instance, with Chinese enterprises' contract volume increasing from just $10 billion in 2000 to more than $140 billion last year.

However, how to respond to the changes of targeted countries' political and economic policies, and how Chinese enterprises can adapt to local social and natural environments are the challenges that the Belt and Road Initiative faces. China's leadership, therefore, should coordinate the going-out strategies of Chinese enterprises to ensure they don't end up competing with each other and losing money in the process.

The enterprises, for their part, should conduct professional risk assessments, devise mature risk management systems and look at the bigger picture. Entry into the world market does not necessarily mean instant profits. The learning curve could be demanding. But patience and the right strategy can bring success.

The author is a professor of economics at Peking University. This is a translation of his speech at a forum in Shanghai on China's macroeconomy co-hosted by the university and the Shanghai municipal government in Shanghai on March 22.

(China Daily 04/18/2015 page5)