Workers at a steel factory in Dalian, Liaoning province. [Photo/China Daily]

　　Cooperation in capacity to reshape global value chainInternational cooperation in production capacity is an innovative way to boost the global economyand reshape the global value chain, and there are great opportunities for international productioncapacity cooperation with the advancement of the Belt and Road Initiative.

　　According to United Nations Industrial Development Organization's Industrial DevelopmentReport 2016, China ranks fifth in the global Competitive Industrial Performance Index.

　　As China is the largest trade partner of many countries along the routes, its production capacitycan help upgrade the manufacturing industries and improve infrastructure in countries along theroutes, especially developing countries.

　　At a recent meeting on the Belt and Road Initiative, President Xi Jinping said that China haslaunched international production capacity cooperation with more than 20 countries.

　　"Through production capacity cooperation, China is transferring its advantageous industries andtechnologies to countries along the routes, and thus is accelerating the diffusion of technologyand economic growth globally," said Zhang Yongjun, a researcher at the China Center forInternational Economic Exchanges.

　　The production capacity cooperation has made remarkable achievements in a short time.According to China's National Development and Reform Commission, bilateral and multilateralproduction capacity cooperation funds along the Belt and Road routes, such as the China-AfricaProduction Capacity Fund and China-Kazakhstan Production Capacity Fund, exceeded $100billion by July.

　　Several cooperation platforms for production capacity and equipment manufacturing have beenestablished in Southeast Asian countries such as Indonesia and Eastern European countries likeBelarus.

　　International production capacity cooperation does not mean that China is transferring itsovercapacity to other countries, instead it is win-win cooperation based on supply and demandand the optimal allocation of resources on a global scale.

　　"Production capacity cooperation is not dumping of low quality products in other countries, butcompetitive cooperation," said Cao Yuanzheng, former chief economist of the Bank of China. "For instance, the cost of the majority of steel products produced in China is at the globallyaverage level. These products are not outdated and have a competitive advantage in themarket," Cao said.