Issue 3_The Export-Import Bank of China

News

Issue 3

The Impact of Political Risks on Corporate Foreign Direct Investment and Mitigation Measures

HUANG He, LIANG Jiaqian

　　In the context of global competition, corporate foreign direct investment not only faces various market risks, but also often suffers from political risks. Such risks primarily stem from great power rivalry, geopolitical conflicts, and political instability in host countries, which are prone to amplify investment uncertainty. It is recommended that enterprises should improve dynamic assessment and early warning mechanisms, deepen government-industry-academia collaboration, prioritize localization strategies, public diplomacy and shared values, and mitigate potential losses through diversified measures such as risk insurance, legal protection and emergency response mechanisms. A sound balance between macroeconomic benefits and corporate performance is essential to win-win partnerships and sustainable development in complicated environments. For details, please refer to Overseas Investment & Export Credits, Issue 3, 2025, pages 3-5.
　　

Quantitative Analysis of Green Efficiency in China’s Overseas Investment under the Belt and Road Initiative

CHEN Shengrong, KANG Guanghao, CHEN Junbai

　　In recent years, green investment under the Belt and Road Initiative (BRI) has become a new development trend. To further quantitatively evaluate the green efficiency and contribution of China's outward investment under the BRI, this article constructs an "input-output" framework that incorporates economic growth levels and environmental emission factors. By employing the Slack-Based Measure (SBM) model and the Malmquist index model, we investigate the green efficiency and dynamic trends of China’s investments in some BRI partner countries, and propose policy recommendations correspondingly based on our findings. For details, please refer to Overseas Investment & Export Credits, Issue 3, 2025, pages 6-12.
　　

Project 2025: Trump’s Second-Term Approach to Curbing the Belt and Road Initiative

MAO Xinya

　　Project 2025, compiled by the Heritage Foundation, a conservative U.S. public policy think tank, focuses on proposing policy recommendations to address America's deepest challenges. Project 2025 takes a competitive and adversarial approach toward China's Belt and Road Initiative (BRI). It suggests strategies such as enhancing U.S. influence in Latin America, advancing the Indo-Pacific Strategy, pursuing transformative energy policies, and selectively revitalizing international development assistance to counter China's BRI. These strategic recommendations may shape U.S. policy direction during the second Trump administration. For details, please refer to Overseas Investment & Export Credits, Issue 3, 2025, pages 13-15.
　　

Tariff Wars in Trump 2.0 and the Global Supply Chain

DING Chun，HUO Zhuoxiang

　　From the Smoot-Hawley Tariff Act of 1930 to the “reciprocal tariffs” in 2025, the United States has consistently used tariffs as a weapon, battering the multilateral trading system. Tariff wars may accelerate geographic transformation of global supply chains, intensify fragmentation, drive up production and operating costs, and sap corporate investment and innovation. To withstand the shock, all related parties should bolster supply chain resilience, build diversified trading systems, strengthen regional cooperation and coordination, and enhance technological self-reliance. For details, please refer to Overseas Investment & Export Credits, Issue 3, 2025, pages 16-19.
　　

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.

Systemic Risk Governance in Cross-border Hydropower Clusters: A Case Study of the Mekong River Basin

SHI Lin, SHEN Wei, WANG Yao

　　Clustered development of hydropower projects is conducive to the energy transformation and economic development of countries in the river basin, whereas it is vulnerable to climate change, which leads to increased difficulty in governance as well as transmission and amplification of systemic risks. This article takes the Mekong River basin as a case to study the interaction between large-scale cross-boarder hydropower clusters and climate, social and governance risks. It proposes three paths for risk governance. Firstly, the potential loss of communities and investors can be reduced by using green financial instruments such as the climate index insurance. Secondly, a systemic risk assessment mechanism should be built, integrating climate sensitivity analysis and involving multiple parties. Thirdly, the mechanism for cross-border coordination and accountability should be strengthened based on multilateral platforms to clarify responsibilities, with third party oversight included. For details, please refer to Overseas Investment & Export Credits, Issue 3, 2025, pages 20-22.
　　

Optimizing China’s Strategy in Global Nuclear Power Export Competition: A Multinational Comparative Perspective

NIE Xin

　　This article examines the models and strengths of major nuclear power exporters from a multinational comparative perspective. Russia has gained a competitive edge through sovereign wealth fund financing, global industrial chain integration, and innovation in BOO model. France has built an efficient financing system based on the OECD framework. The United States adopts a dual-track strategy combining technology export and dominance in rule-making. The Republic of Korea has achieved a breakthrough via government coordination and financing packages. China’s nuclear power export still require further improvement in industrial coordination, financing instruments and risk mitigation. This article thereby proposes establishing a collaborative mechanism between governments, enterprises and banks, innovating a full-cycle financial portfolio, and building a three-tiered risk mitigation system. It is highlighted that nuclear power export solutions with Chinese characteristics should be formulated through policy coordination, financial innovation and application of multi-tiered risk sharing mechanisms. For details, please refer to Overseas Investment & Export Credits, Issue 3, 2025, pages 23-27.
　　

Resolving Off-Balance-Sheet Financing Challenges in International Engineering Contracts: A Case Study on the Challenges and Practices of Non-RecourseInternationalFactoringwithSpecificContractInsurance

ZHANG Xiaocheng, TONG Gang, CHEN Lei

　　In recent years, international engineering contractors have booming demand for removing accounts receivable factoring off the balance sheet. Commercial banks’ non-recourse international factoring with specific contract insurance attracts engineering contractors’ attention for its efficiency in providing off-balance sheet financing. However, this highly specialized business often bring about differences between banks and enterprises on eight key issues. This article analyzes these eight issues and puts forward practical measures to help all related parties to think differently, so as to achieve balance between off-balance sheet financing for enterprises and risk control of banks, thus resolving off-balance sheet financing challenges in international engineering contracts. For details, please refer to Overseas Investment & Export Credits, Issue 3, 2025, pages 28-32.
　　

Innovations in Letter of Credit Sanction Clauses

ZHANG Yifan, WANG Yuqi, PAN Lili, LIU Shuai

　　Against the backdrop of the escalating China-US economic and trade friction, Chinese banks are facing a continuous rise in sanction risks. The inclusion of sanction clauses in letters of credit (L/Cs) has become a key measure to address such risks. However, the banking industry has not yet established a unified standard for sanction clauses, and there is a tendency towards ambiguity and generalization in practice, which contradicts the core features of L/Cs. The effectiveness of such clauses is also plagued by apparent theoretical contradictions and practical dilemmas. Based on the analysis of attitudes of the International Chamber of Commerce (ICC) and trade-related parties, this article summarizes the direction of improvement and important principles for future applications in the banking industry through an innovative case study of sanction clauses in L/Cs. For details, please refer to Overseas Investment & Export Credits, Issue 3, 2025, pages 33-38.
　　

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.

Advancing CPTPP’s Inclusive Development Through Higher-Standard Opening-Up

LI Ben, WANG Tiantian

　　In recent years, China has been actively promoting the process of joining the CPTPP. China's accession can exert a positive impact on CPTPP members in terms of micro market construction, regional economic integration, and expanding multilateral cooperation. Under the current circumstances, advancing CPTPP’s inclusive development is necessary, which requires mutual efforts: on the one hand, the CPTPP rules should accommodate broader multilateral cooperation; on the other hand, China also needs to proactively align with the high-standard rules of the CPTPP through further institutional opening-up. For details, please refer to Overseas Investment & Export Credits, Issue 3, 2025, pages 39-42.
　　

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.

Agricultural Development in Argentina and China-Argentina Cooperation Opportunities

ZHENG Fanghui, DAI Xufei

　　As an important global exporter of agricultural products, Argentina has abundant agricultural resources and mature industrial structure, but it also faces challenges such as inadequate infrastructure, monopolization by international grain traders, and inconsistent economic policies. The supply and demand structures of China and Argentina are highly complementary, offering potential for cooperation. Against the backdrop of tightening resource and environmental constraints as well as frequent trade frictions, Argentina's relaxation of key infrastructure, farmland restrictions, and foreign investment policies provides important opportunities for China to build diversified import channels and improve its overseas agricultural layout. For details, please refer to Overseas Investment & Export Credits, Issue 3, 2025, pages 43-48.
　　

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.