Germany’s Siemens has signed an agreement with 10 Chinese engineering, procurement and construction (EPC) contractors across the power generation, transmission and mobility sectors sectors to address opportunities in line with the China-led belt and road initiative (BRI).

The EPC contractors include:

• China Gezhouba Group Corporation International Engineering Company
• Guangdong Yuedian Group
• China National Chemical Engineering Group
• China Railway Construction Corporation
• China Civil Engineering Construction Corporation
• China Resources Cement Holdings

Joe Kaeser, Siemens CEO and president, told journalists at a forum in Beijing on 6 June that he expects the BRI to create reciprocity and a level playing field among engineering, procurement and construction (EPC) firms.

“This [BRI] is a good way for China to practice its market economy status,” Kaeser said. “We want to see the BRI as a programme where the best team, not just somebody who is lucky, wins [new projects].”

He added that in order to win new projects, it is now crucial for global EPC contractors wanting to enter countries that have signed up for the BRI to comply with local standards, in the same way that Chinese contractors are required to comply with the local standards of every country where they bid for contracts.

Kaeser adds he does not believe its new partnerships will alienate EPC and after-sales contractors from European or Middle East countries, which have increasingly become concerned over being underpriced by their Chinese counterparts.

“I am not worried about it, competition has always been there … it is not [always] about the price, customers often look for the best offer, usually for long-term partnerships,” Kaeser said.