Issue 6_The Export-Import Bank of China

News

Issue 6

The Belt & Road Initiative: International Economic Cooperation Over the Past Ten Years

YUAN Feng

　　Belt and Road cooperation, since it was initiated in 2013, has achieved remarkable results over the past decade. This paper reviews the background and significance of the Belt and Road Initiative, summarizes its progress as well as positive impacts at home and abroad, discusses cognitive differences in promoting Belt and Road cooperation, and puts forward an outlook for the high-quality development of Belt and Road cooperation in the future. For details, Please refer to Overseas Investment & Export Credits, Issue 6, 2023, pages 3-4.
　　

Sustainable Connectivity: Achievements of and Challenges for China-Africa Cooperation on Transportation Infrastructure

SONG Wei, HE Shumei, ZHANG Yongqing

　　In the past decade, African countries have responded positively to the BRI. Tapping into unique potentials of China-Africa cooperation, China has supported a large number of transportation infrastructure projects in Africa, which has promoted the development of local industries, improved transport efficiency and facilitated the sustainable development of African countries. The current global landscape characterized by complex and intertwined factors of instability calls for enhanced cooperation between China and Africa. In order to promote sustainable connectivity in Africa, both sides should explore innovative financing patterns, broaden the financing envelope and service industrial clusters with development in transportation infrastructure. For details, Please refer to Overseas Investment & Export Credits, Issue 6, 2023, pages 5-8.
　　

Disclaimer: The articles in this section solely represent the personal views of the author and are not related to the positions of the Export-Import Bank of China.

Difficulties for WTO Agreement on Investment Facilitation Negotiations and China’s Responses

ZHANG Jin

　　On 6 July 2023, key progress of WTO Agreement on Investment Facilitation Negotiation was made by finalizing the text of the agreement. As the first multilateral investment agreement, it aims to improve the transparency of investment policies and streamline administrative procedures of all countries. The agreement, once coming into effect, will have far-reaching impact on international investment. It will also promote Belt and Road cooperation and protect Chinese investors from discriminatory treatments. However, there will be negotiations on certain difficult issues before the agreement takes effect. WTO members should strengthen cooperation, enlarge the membership of the agreement, and assess relevant needs so as to bring the agreement into force and facilitate its implementation. For details, Please refer to Overseas Investment & Export Credits, Issue 6, 2023, pages 9-13.
　　

Analysis on Rules for Debt-for-Nature Swaps and Debt-for-Climate Swaps

LI Tianyu

　　In recent years, low- and middle- income countries are faced with emerging debt problems, as the impacts of climate changes and extreme weathers intensify and multiple shocks occurred from Covid-19, global economic downturn, geopolitical conflicts, as well as rising interest rates of the U.S. Federal Reserve. As a result, calls for Debt-for-Nature Swaps and Debt-for-Climate Swaps gain increasing popularity. This paper studies the mechanism of Debt-for-Nature Swaps and Debt-for-Climate Swaps based on their concepts, histories and characteristics. It also gives analysis to the opportunities and challenges of Debt-for-Nature Swaps and Debt-for-Climate Swaps with practical cases, and therefore puts forward several thoughts on this issue. For details, Please refer to Overseas Investment & Export Credits, Issue 6, 2023, pages 14-18.
　　

Disclaimer: The articles in this section solely represent the personal views of the author and are not related to the positions of the Export-Import Bank of China.

Research on the High-quality Development of China-Europe Railway Express under the Belt & Road Initiative

WANG Yijian, LV Cheng, ZHU Shuosheng, ZHOU Yanlin

　　Since the Silk Road Economic Belt Initiative was proposed in 2013, the China-Europe Railway Express has become a new land transportation corridor spanning the Eurasia continent. Entering a new stage of development, the railway express is faced with saturated capacity, in the meantime, its coordination mechanism is short of binding effect and its supportive policies need to be optimized. We should have a dialectical view on the relations between number and quality of freight trains, goods undertaken by assembly centers and those via nonstop transportation, as well as market orientation and supporting policies. By enhancing the carrying capacity and coordinating the development with that of local economies, the China-Europe Railway Express will better contribute to the high-quality Belt and Road cooperation and the accelerated building of a new development paradigm. For details, Please refer to Overseas Investment & Export Credits, Issue 6, 2023, pages 19-24.
　　

Research on International Policies Guiding ESG Investment and Their Implications for China

ZHANG Qi, ZHANG Shanshan

　　ESG investment plays a pivotal role in facilitating green and low-carbon economic transition with a better use of capital to achieve carbon peaking and carbon neutrality goals. Currently, ESG investment is still in its early stage in China, whereas developed markets in U.S. and Europe have accumulated rich expertise throughout years of exploration. They have fleshed out multi-layered policy systems for ESG investment with measures taken to improve prudent and self-disciplined management, information disclosure as well as incentive mechanisms. In addition, they have actively guided, encouraged and regulated the participation of various market players. This paper gives an overview of approaches adopted by the developed markets, which can be taken as a reference for China to improve its sustainable financial framework and encourage domestic and overseas investors to participate in the sustainable development of finance. For details, Please refer to Overseas Investment & Export Credits, Issue 6, 2023, pages 25-29.
　　

Correlated Risks of U.S. Leveraged Loans and Asset-backed Securities

XIE Yaxuan, ZHANG Antian

　　Provision of leveraged loan in the U.S. grew rapidly in 2021, yet the international financial market began to witness a shift in risk appetite for leveraged loans in 2023. It is worth noting that the scale in the leveraged loan market increased correlated risks among U.S. financial institutions. Profit-related pressure caused by economic slowdown and high interest rates under tightening liquidity conditions overseas have exposed the CLO market to default risks. Financial risks in the U.S. might have an effect on China’s financial market through risk sentiment, cross-border capital flows and other channels. For details, Please refer to Overseas Investment & Export Credits, Issue 6, 2023, pages 30-34.
　　

Disclaimer: The articles in this section solely represent the personal views of the author and are not related to the positions of the Export-Import Bank of China.

Analysis on Social Security Risks Related to Direct Investment in the ASEAN Region

LI Xichen, ZHANG Jiaming

　　Social security risks are one of the key risks related to foreign direct investment (FDI). This paper estimates the social security risks in ASEAN, an important partner of the Belt and Road cooperation. By analyzing three main aspects, namely internal conflicts, anti-terrorism efforts and public security, this paper provides reference for China’s FDI in ASEAN. Correlation analysis shows that the parameter of social security risks has a negative correlation with ASEAN countries’ accommodation of Chinese FDI. It is an important foundation for China and ASEAN to deepen Belt and Road cooperation that the security of Chinese citizens and company properties must be ensured in the course of overseas investment cooperation. For details, Please refer to Overseas Investment & Export Credits, Issue 6, 2023, pages 35-41.
　　

Scaling up China’s Investments in France to Bring the Bilateral Economic and Trade Cooperation to a Higher Level

TAN Jun, ZHANG Yueyang

　　In recent years, France has achieved solid results in attracting foreign direct investment (FDI), featuring steady increase in the number of projects, continuing growth in existing investments, larger fluctuation in capital flow and evident characteristics in industry differentiation. These changes are closely related to France’s proactive reforms in key areas of taxation, labor market and so on, accelerated pace in social sustainable transformation, and optimized administration. China and France enjoy important economic and trade partnership. Enlarging Chinese investment in France serves mutual interests with ripe timing, solid foundation and sound conditions at the moment, while it is also facing risks and challenges such as increased enforcement of security censorship. We should seize the opportunity to scale up investment in France and bring the bilateral economic and trade cooperation to a higher level. For details, Please refer to Overseas Investment & Export Credits, Issue 6, 2023, pages 42-46.
　　

Disclaimer: The articles in this section solely represent the personal views of the author and are not related to the positions of the Export-Import Bank of China.