Issue 6_The Export-Import Bank of China

News

Issue 6

Policy Research on the Role of Foreign Investment Cooperation in Pursuing Carbon Peak and Carbon Neutrality Goals under New Circumstances:Reference of the UK's Experience

Lin Yuan

　　Foreign investment cooperation is an important way to obtain key minerals and technical equipment needed for green transformation. It is of great significance for China in pursuing carbon peak and carbon neutrality goals, establishing an economy that facilitates green, low-carbon and circular development, and winning advantages in international cooperation and competition. At the government level, the experience of the UK in carbon peaking and carbon emission reduction could be drawn on to coordinate development of foreign investment and green transformation, with strategic planning being carried out, international cooperation strengthened, new forms of foreign investment created and public service system improved. It is suggested that Chinese enterprises increase investment in key resources and advanced green technologies and improve green compliance managements. For more details, please refer to pages 3-6 of the sixth issue of Overseas Investment and Export Credits in 2024.
　　

Research on the Prevention and Resolution of International Green Trade Barriers in the Context of Industrial and Supply Chain Restructuring

Liu Yan, Huang Qin

　　Against the backdrop that the concept of security being overstretched, developed economies such as the US and Europe are imposing more restrictions on the trade of green products through carbon tariffs, carbon labels and other green trade barriers. This article analyses the Carbon Border Adjustment Mechanism and Regulation (EU) 2023/1542 concerning batteries and waste batteries, assesses the impact and potential risks to China and proposes coping strategies, including active participation in the formulation of international climate rules, improvement of the domestic carbon market system, enhancement of trade barrier warning mechanisms, and exploration of diversified markets to prevent and resolve international green trade barriers. For more details, please refer to pages 7-12 of the sixth issue of Overseas Investment and Export Credits in 2024.
　　

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.

US Monetary Policy and Debt Issues in Latin America

Wang Fei

　　Historically, cyclical changes in US monetary policy through channels including interest rate and exchange rate have frequently triggered debt crises in Latin America and the Caribbean region, affecting their financial stability. Today, although the scale of debt in the region has expanded, its foreign debt ratios and external sovereign debt remain stable relatively, and debt risks are controllable. As the US Federal Reserve kicked off a cycle of interest rate cuts, the debt burden of Latin American and Caribbean countries would be alleviated to some extent. Nevertheless, it remains to be seen whether Fed Reserve’s interest rate cuts cycle would continue and the pressure on sovereign debt still exists among the countries in the region. For more details, see pages 13-16 of the sixth issue of Overseas Investment and Export Credits in 2024.
　　

Reflections on G20's Governance of Sovereign Debt

Xu Xuemei

　　As a governance mechanism bringing together major developed economies, emerging markets and developing economies around the globe, the Group of Twenty (G20) plays a key role in multilateral debt treatment, with progress achieved in sustainable finance and debt transparency. Currently, the G20 still faces great difficulties and challenges in its governance of sovereign debt, which calls for settling the difference among principles of sovereign debt governance, addressing the conflict between debt relief and maintenance of credit rating, and coordinating traditional and emerging creditors. China, having provided the largest amount of debt relief among G20 members, shall continue to be proactively engaged in the G20’s governance of sovereign debt as an emerging creditor and a member of the Global South, so as to improve the rules of G20’s governance while enhancing the voice and representativeness of developing countries. For more details, please refer to page 17-20 of the sixth issue of Overseas Investment and Export Credits in 2024.
　　

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.

Observations on Chinese Manufacturing Enterprises in Mexico

Dai Xufei

　　As China upgrades its manufacturing sector, the expansion of global layout has become a priority for Chinese manufacturing enterprises. In recent years, with the re-localization of the US’s manufacturing sector and the rise of nearshoring, Mexico has become a popular destination where Chinese enterprises invest and build factories. This article reviews the background and trend of nearshoring in the US and operation of manufacturing industries invested by Chinese enterprises in Mexico, and provides suggestions for enterprises going global. For more details, please refer to page 21-26 of the sixth issue of Overseas Investment and Export Credits in 2024.
　　

Risks and Forestalling Measures in Investing Overseas Mining Projects

Wei Juan

　　As global investment in the mining sector fluctuates and China’s domestic consumption of mineral commodities grows stably, it is of particular importance for Chinese enterprises to increase global presence in the mining sector. Investment in the mining sector is subjected to risks concerning mining permits, reserves and grading, infrastructure, taxation on mineral rights, as well as risks related to operation shutdown, political intervention and export controls, etc. These risks are to be identified, assessed and managed through meticulous due diligence investigation, prudent deal structuring, and active interaction of original stakeholders or executive teams with local governments and communities. For more details, please refer to page 27-31 of the sixth issue of Overseas Investment and Export Credits in 2024.
　　

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.

The Path and Implication of Subsidy Regulation in the US and EU

Xu Qianyu

　　In recent years, subsidy-related trade disputes have surged with increased investigation into subsidies on imports. To regulate subsidy has become a focus and posed difficulties for trade policymakers of all economies. Consistent efforts are being made by the US and EU in revising their subsidy policy frameworks, with regulations put in place in response to non-market economy-related issues and focusing on new energy industries. China needs to follow up the trend of subsidy regulation in the US and EU, and take proactive countermeasures by pressing ahead with deepened reform of state-owned enterprises and engaging itself in negotiations on subsidy rules under the World Trade Organization framework. For more details, please refer to page 32-35 of the sixth issue of Overseas Investment and Export Credits in 2024.
　　

Arguments on International Rules in Digital Trade Negotiations and China's Solutions

Yi Ziyu

　　Digital trade has become a crucial driver for global economic growth. Data flow, digital technology and digital platform, as the three pillars for digital trade, are facing new issues that go beyond the limits of traditional regulations and are subjected to an obvious conflict of rules. It is suggested to strike a balance between data security protection and free flow of data, formulate standards for key areas of digital technology and security rules to help improve the domestic regulatory framework for digital platform, and explore exceptional clauses regarding digital trade reform. For more details, please refer to page 36-40 of the sixth issue of Overseas Investment and Export Credits in 2024.
　　

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.

A Comparative Study on Major Official Export Credit Agencies in Asia

Zhu Bowen, Wang Yijian

　　In the complex and ever changing international landscape gripped by anemic growth, official export credit agencies, grounding their efforts in respective national conditions, remain committed to their mission and continue to adjust their business focus in response to various risks and challenges. This article probes into operational features of major official export credit agencies in Asia, and compares their targets and functions, business scopes, funding sources, capital supplement, management approaches and regulatory models, which can be taken as a reference to giving official export credit agencies a better play. For more details, please refer to page 41-46 of the sixth issue of Overseas Investment and Export Credits in 2024.
　　

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.