Is the Chinese-funded enterprise in Turkey still okay after the coup?

Since Turkish President Erdogan has announced that Turkey has entered a three-month state of emergency, the parade in support of Erdogan will be staged in Istanbul and the capital Ankara every day. In the current turbulent political environment in Turkey, is the Chinese-funded enterprise rooted in Turkey still okay?

Photovoltaic companies encounter double dilemmas

Sun Zheng, who worked at CLP's photovoltaic factory in early 2015, told this reporter that although the current factory production and sales were not directly affected by the coup, the original 13 million US dollars investment was planned to start in July and August. Development projects are currently uncertain.

Sun Zheng said that the company's current development in Turkey has encountered two problems. On the one hand, in early July this year, the Turkish Ministry of Economic Affairs issued a notice saying that it will implement anti-dumping policies on PV products imported from China, which may be produced in China after September. The PV modules are not allowed to enter the Turkish market again.

For the CLP PV, which has already set up a factory in the Tuzla Free Zone in Turkey, the Turkish government, although allowing its components to be sold in Turkey, still has to impose a higher value-added tax than local Turkish companies. Therefore, in order to completely avoid the impact of the double-reverse policy, China Light and Power PV needs to open a new factory in Turkey, thus obtaining the same treatment as the photovoltaic enterprises in the territory.

"On the other hand, due to the attempted military coup in Turkey on July 15 and the subsequent three-month state of emergency in the country, there is also the international rating agency Standard & Poor's downgrading the Turkish government's credit rating from BB+ to BB. The negative news has caused many investors to be discouraged from the Turkish domestic market. "From the anxiety of Sun Zheng, you can see the seriousness of the problem.

At present, China Telecom's new investment project has already selected the site, which was originally scheduled to start this month or next month. Now it is a bit uncertain. The total investment of this 100-200 MW new project is about 13 million US dollars.

According to the Economic and Trade Office of the Chinese Embassy in Turkey, “The Turkish government’s trade relief industry has significantly increased its exports to China since the beginning of this year. Among them, new concrete pumps and concrete pump trucks, photovoltaic modules and quilted fabrics originating in China. Established 3 anti-dumping investigations, initiated 3 anti-dumping reexamination investigations on my wire electrode, pentaerythritol, tires, etc., and made 5 kinds of products such as sodium formate, air-conditioning water cooling system, frameless glass mirror, wire rope and conveyor belt and related parts. The final decision on the anti-dumping of taxation or maintenance of taxation."

The progress of underground natural gas storage projects is blocked

"On the night of the coup, we immediately held an emergency meeting at the project site. And two other employees just returned from the Istanbul airport that night, and they lost their connections. Everyone was very nervous. In the next few days, we strengthened the project site. security". Speaking of the night of the coup d'état on July 15, from the tone of Liu Yingjie, China's Tianchen Engineering Company in charge of safe production and security in Turkey, there is still some tension and uneasiness.

Yan Xinming, executive manager of the Salt Lake Underground Natural Gas Storage Project of China Tianchen Engineering Company, told the “First Financial Daily” reporter that “after the coup, the progress of our project was affected because important decision meetings had to be postponed, goods could not be entered, and personnel plans It has also been postponed. The employees are emotionally unstable and worried about safety.” In the view of Yan Xinming, the biggest difficulty in the current project promotion is that the goods cannot be delivered in time, delaying the installation progress, and may result in the contract period not being completed on time.

Yan Xinming said that the company's development strategy for Turkey has remained basically unchanged, but there are still many concerns about security issues. It is necessary to pay close attention to policy changes in various aspects of the Turkish government. At the same time, he believes that "this incident may be an opportunity for the development of China-Turkey economic and trade relations due to the separation of the Erdogan government from the United States, the European Union and Russia."

As for the company's three major projects in Turkey, Li Chen, the business manager of Tianchen's Turkey branch, told this reporter that "in addition to the contract value of more than 500 million US dollars, it has been started for 9 years, and the 2020 contract expires in the salt lake underground natural gas storage. In addition to the library project, there will be a start-up project in 2014 with a contract value of more than US$1.1 billion, an annual output of 2.5 million tons of trona, the world's largest trona plant under construction, and an ETI trona and self-sufficient power station expansion project to be officially put into operation next year. ."

Chinese employees are very anxious

Recently, the volatile situation in Turkey has directly led to a lack of stability and security for Chinese-funded employees in Turkey. "In daily life, because the company is not in the center of Istanbul, there is no direct security impact, but psychological concerns and uneasiness are still very obvious," Sun Zheng said. According to him, the staff situation is stable. More than 50% of the employees in the factory support the current government and Erdogan. However, the safety of friends and relatives living in Istanbul is still quite anxious and concerned.

"Our office and resident are located in the west city of Ankara. There are also military bases, air force training bases and some government agencies nearby. On the day of the coup, the sound of military aircraft flight and bombing was very clear, and it must be a little scared. After the terrorist attacks in major cities have occurred many times, they are now very cautious when they go out, trying to reduce the number of trips and public transportation, which has a certain impact on their work and life." Li Wei told the "First Financial Daily" Reporter, "In addition, the Turkish economy has been sluggish in recent years. This coup is definitely aggravating the economy. The engineering industry in which we operate is seriously affected. The future situation is difficult to say. I used to think that Turkey has a good development prospect. Now, there is too much uncertainty in my heart."

In fact, the economic and trade exchanges between China and Turkey have been good in recent years. Turkey is also an important stop in the promotion of the “Belt and Road” policy. Turkish Economic Minister Zebecki, who had previously attended the G20 Summit Trade Ministers Meeting in Shanghai, told the media that the high-speed rail project on Edirne-Kars and Izmir Antalya has been carried out with the Chinese side. Negotiation and consultation.

According to data released by the Central Bank of Turkey, Turkey's foreign direct investment (FDI) reached US$16.5 billion in 2015, a year-on-year increase of 32%. Manufacturing became the industry with the highest proportion of foreign investment in Turkey last year, followed by the Financial Services and Transportation Sector. Spain became the largest source of Turkish FDI last year, followed by the United States and Luxembourg, which ranked ninth ahead of Germany.

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