Building China's framework for overseas investment and financing cooperation. Issue 1 (2nd January 2018)

• Record Type: Journal Article
• Authors: Zhu, Jun; Guo, Kai; Ai, Ming; Bai, Xuefei; Zhao, Yue
• Is Part Of: China economic journal. Volume 11:Issue 1(2018)
• Page Start: 81
• Page End: 89
• Publication Date: 2018-01-02
• Subjects: Overseas investment and financing cooperation framework -- South–South cooperation -- Belt and Road Initiative; G20 -- F36; Economic development -- China -- Periodicals; China -- Economic conditions -- Periodicals; China -- Economic policy -- Periodicals; 338.900951
• DOI: 10.1080/17538963.2018.1416775
• Languages: English
• ISSNs: 1753-8963

Abstract

ABSTRACT: In recent years, China's overseas investment and construction projects have been developing rapidly. In the meantime, financing demand in developing and emerging economies for projects such as infrastructural and industrial development has soared. This paper assesses the status quo of China's cooperation in overseas investment and financing, recommends that China should promote investment and financing cooperation under the leading principles of market-orientated operation and primary role of enterprises, and clarify the due positions of market, government, and international institutions. This paper presents the following policy recommendations: (1) Promoting the development financing; (2) Further improving China's export credit mechanism, to provide investment and financing support for Chinese enterprises in overseas ventures; (3) Improving the network of Chinese financial institutions and the coverage of financial services; (4) Encouraging host countries, multilateral development banks, capital markets of developed economies, and international financial centers to perform due functions in overseas investment and financing cooperation; and (5) Appropriately using a variety of investment and financing methods, including equity investment.