1. Current background
of cement enterprises going out (1) Industry background
Since 2022, due to the lack of macroeconomic recovery momentum and the continuous adjustment of the real estate market, the demand for cement has weakened significantly and the market competition is fierce. Cement prices have fallen sharply, demand is insufficient and prices are down, cement industry profits have fallen by more than half, many enterprises have suffered serious losses, and the cement industry is in danger.
Figures 1 and 2: Decline
in both industry demand and profit since 2022 Data source: cement big data (https://data.ccement.com/)
The demand side is declining, but the supply side is more serious. China Cement Network Cement Big Data Research Institute estimates that the real capacity utilization rate of clinker in 2022 is about 61%, reaching a low point in recent years, with serious waste of resources and more acute contradiction of excess capacity. Faced with the industry dilemma of "declining demand, shrinking efficiency and overcapacity", China's cement enterprises to increase their efforts to go out is not only a good opportunity to achieve their own sustainable development, but also an inevitable choice to resolve the serious overcapacity of the industry, deeply integrate into the international market and then lead the global cement industry.
Figure 3: The clinker capacity utilization rate reaches a new low
in 2022 Source: Cement Big Data (https://data.ccement.com/)
(II) Policy Background
In September and October 2013, After General Secretary Xi Jinping put forward the strategic concept of building the "New Silk Road Economic Belt" and the "21st Century Maritime Silk Road," the Chinese government accelerated the introduction of relevant policies. The Vision and Actions for Jointly Building the Silk Road Economic Belt and the 21st Century Maritime Silk Road and the Guiding Opinions on Promoting Cooperation in International Production Capacity and Equipment Manufacturing have been released one after another, and these two documents have become programmatic documents guiding Chinese enterprises to go global. The document pointed out that domestic enterprises should be encouraged to participate in infrastructure construction and industrial investment in the countries along the line, and actively promote international capacity cooperation, with the building materials industry as the focus. Since then, relevant policies and laws and regulations have been continuously improved and refined to promote the construction of green "one belt and one road" and encourage private enterprises to expand overseas business, which provide strong policy support for Chinese enterprises to go out.
Table 1: Relevant policies 
to encourage "going out" after the "Belt and Road" strategy is put forward Source: Cement Big Data Research Institute
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