International Business: Genertec the Pilot into Russian Market

China General Technology (Group) Holding, Ltd has been engaging in development of Russian market for long. Some specialized foreign trade companies under this group are the first ones entering Russian market, and have accumulated great experience.

In the years after the founding of new China, some national foreign trade companies such as China National Technical Import and Export Corporation and China National Machinery Import and Export Corporation, which are now subsidiaries of China General Technology (Group) Holding, Ltd (Genertec), were the main channel for Sino-Russian bilateral trade. In the 1st-Five Year Plan period, subsidiaries of Genertec introduced from the former Soviet Union one hundred and fifty-six large key industrial projects, which helped to lay a solid foundation for China’s modern industry base. In the 8th-Five Year Plan period, these companies introduced from Russia power equipment and technology improvement equipment for three big power stations, namely, Yimin, Suizhong and Jixian, with total value exceeding 2.00 billion in Swiss Franc; Imported aircrafts and spare parts, railway locomotives, automobiles and various equipment by Genertec’s subsidiaries have been taking a proportion around 40% in the total import volume of China from Russia for many years; While in the same period, they also achieved export of electro machinery products, machinery equipment, light industrial products and textiles to Russia in large volumes.

In recent years, Genertec made breakthrough progresses in areas such as energies, ship-building, and light industrial machineries. Genertec currently is engaging in some in-depth market development projects in Russia with total value exceeding USD 2.20 billion, covering more than USD 1.30 billion of technology introduction, which includes import of ESH 40.100 lifting equipment from OMZ, one of the biggest heavy-duty machinery manufacturers in Russia, introduction of heavy-ion medical technology and equipment, and electronic devices and relevant equipment from Russia. Contracts for above-mentioned import have been signed.

What is more, while Russia is hoping to expand its export in areas of thermal power, hydro power and nuclear power equipments, mining equipment, civil aviation products and trucks, Genertec not only owns companies specializing in business of energies, aircrafts and automobiles with rich experience and competitive advantages, but also has been cooperating with Russian counterparts in relevant areas since long before. Senior members of the Group made clear their willingness to continue their services for Sino-Russian economic and trade cooperation as a bridge and channel connecting the two economies.