Issue 3

Staying Committed to the Mission of Policy Finance and Writing a New Chapter in Serving China’s Development

Ren Shengjun

　　For details, please refer to Overseas Investment & Export Credits, Issue 3, 2024, pages 3-4.
　　

Decades of Sustainable Partnership Between Egypt and the Export-Import Bank of China

Rania Al-Mashat（Egypt）

　　This article explores the successful decades-long strategic partnership between Egypt and China, introducing the mutual efforts of both countries in synergizing Belt and Road Initiative, Global Development initiative with Egypt’s 2030 vision and the mutual support to pursue sustainable development goals. In the meantime, the article sheds light on the close cooperation between Egypt and the Export-Import Bank of China in terms of sustainable development and infrastructure projects. It highlights the Light Railway Train (LRT) as a model for future collaboration. The article also showcases Egypt’s initiatives in pursuing sustainable growth, which are not only conducive to achieve Egypt's national development goals, but also present opportunities for collaboration with the Export-Import Bank of China and the consolidation of a win-win partnership between Egypt and China.For details, please refer to Overseas Investment & Export Credits, Issue 3, 2024, pages 5-8.
　　

A Dynamic Partnership——Cooperation Between the Asian Development Bank and the Export-Import Bank of China

Safdar Parvez

　　For details, please refer to Overseas Investment & Export Credits, Issue 3, 2024, pages 9-11.
　　

Empowering Growth: The Export-Import Bank of China’s Role and Contribution to Indonesia’s Sustainable Development

Rizki Sumartyo Saputro（Indonesia）

　　This article focuses on the pivotal role played by the Export-Import Bank of China in facilitating infrastructure development and fostering economic growth in Indonesia. Tracing the historical trajectory of bilateral cooperation from the beginning of diplomatic relations to the establishment of comprehensive strategic partnership, the article highlights the significant impact of the Bank’s financing on Indonesia's development landscape. By reviewing key projects financed by the Bank, such as power plants, toll roads, and dams, the article underscores the tangible benefits brought by China’s official development assistance to Indonesia's infrastructure sector. Furthermore, it also identifies challenges and prospects for future cooperation between the two sides, including rising borrowing costs, the importance of collaboration with other development partners, and the need for sustainable development initiatives. For details, please refer to Overseas Investment & Export Credits, Issue 3, 2024, pages 12-14.
　　

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.

Global Governance of Digital Trade: Development, Challenges and Prospects

Gao Jiang, Wang Bocheng

　　This article reviews the major progress and breakthroughs made in global governance rules for digital trade from global, regional, bilateral, and unilateral dimensions. It points out that the fragmentation of global governance of digital trade, the divergence of major economies on key issues, the game of interest groups within developed countries, and the huge digital gap between developing and developed economies are all realistic challenges in the negotiation of digital trade rules. Furthermore, the future trend of global governance rules for digital trade is also prospected.For details, please refer to Overseas Investment & Export Credits, Issue 3, 2024, pages 15-19.
　　

Measures and Influence of the United States’ Industrial and Supply Chain Reshaping Movements and its Countermeasures

Zhao Shuogang

　　Since 2008, the U.S. government has formed a series of policies to reshape global industrial and supply chains, with “onshore production” as the core, “nearshoring” as the support and “friendshoring” as the guarantee. With such policy support, the U.S. has managed to ease the hollowing out of its domestic manufacturing industry, and achieved faster adjustment of overseas supply chains. Nevertheless, while the U.S. forcibly reshapes the international supply chain, its actions are against the law of economic development and the trend of economic globalization, which will exert a sustained negative impact on the world economy and ultimately damage the U.S.’s own economy. These policies have an important impact on China’s industrial development and supply chain security, and a systematic approach is needed to deal with the U.S.’s decoupling measures.For details, please refer to Overseas Investment & Export Credits, Issue 3, 2024, pages 20-24.
　　

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.

Development and Experience of KfW’s Climate Investment

Wang Haojie, Zhu Like

　　In present days, climate change is an important issue affecting global green and sustainable development, which needs to be addressed with joint efforts of the international community. Climate financing is oftentimes facilitated by governments through respective national policy banks, among which KfW has been a pioneer for many years. This article revisits in detail KfW’s climate investment activities in chronological order, and comes up with useful insights from three perspectives, including statutory conduct, policy coordination, and financing diversity, with a view to providing reference for further climate investment by policy banks in China and other countries.For details, please refer to Overseas Investment & Export Credits, Issue 3, 2024, pages 25-28.
　　

Application of Letter of Credit in Service Trade: Theory and Practice

Pan Lili, Zhang Yifan, Liu Shuai and Wangyuqi

　　Promoting the high-quality development of trade in services is of great significance. Letter of Credit (L/C) serves as an effective tool to break bottlenecks in the financial support for trade in services. Theoretically, problems concerning soft clauses, document standardization and trade terminologies should be addressed to make L/C more applicable for service trade. By reviewing practical cases, this article summarizes effective measures including internal documentation under external regulatory requirements, phased withdrawal of payments, introduction of a third party in trade, and refinement of contract terms. It also puts forward suggestions such as leveraging policy finance’s demonstration role, strengthening financial product innovation, creating a terminology for trade in services, and improving the third-party documentation system.For details, please refer to Overseas Investment & Export Credits, Issue 3, 2024, pages 29-33.
　　

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.

Post-evaluation of the Sustainability of International Power Investment Projects in BOT Mode

Yuan Li, Li Yi

　　International power investment projects in BOT mode are characterized by long operating periods and inherent uncertainties. However, conventional post-project evaluations tend to be singular and static, posing challenges in accurately capturing, quantifying, and analyzing the risks and changes encountered by these projects during their long-term operation. To provide a more precise reflection of the overall outcome throughout the project lifecycle, continuous post-project evaluations should be conducted. This will improve investment benefits, enhance management systems, and facilitate scientific decision-making.For details, please refer to Overseas Investment & Export Credits, Issue 3, 2024, pages 34-38.
　　

Fitch’s Rating Approach to Project Completion Risk: Analysis and Reflection

Tong Gang

　　Fitch, as a representative of international rating agencies, is widely referenced in the international financing market for its approach to assessing the completion risk of private investment projects. This rating approach first takes the contractor's rating as the basis for evaluation, and determines the maximum upward adjustment range through four major rating references. Subsequently, it determines the project’s completion risk rating through an analysis of the cost coverage of contractor replacement and liquidity adequacy. Based on this premise, this article examines disparities between Chinese and foreign financial institutions in their handling of completion guarantees, while summarizing noteworthy aspects of Fitch's rating methodology.For details, please refer to Overseas Investment & Export Credits, Issue 3, 2024, pages 39-44.
　　

Deliverables and Reflections of Kenya’s Vocational Education Program under the China-Africa Community with a Shared Future

Chang Haina

　　Vocational education has been a key pathway to enhance human capital value and promote economic growth. In recent years, China has been actively engaged in vocational education cooperation with African countries to facilitate the improvement of their vocational education systems. This article presents the vocational education program in Kenya as an example and examines contradictions in its supply and demand dynamics. Furthermore, it elaborates on the accomplishments achieved through China-Kenya cooperation on vocational education, particularly focusing on the youth service team, school upgrades and vocational skills competition. The article concludes by recommending more comprehensive collaborations to further enhance China-Kenya vocational education, serving as a reference for future endeavors.For details, please refer to Overseas Investment & Export Credits, Issue 3, 2024, pages 45-48.
　　

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.
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