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China is launching a global financial mobilization
2018/4/24
Now the speed of China international participation range wide, fast has ever seen. China is a member of a large number of multilateral institutions, and is deepening the relationship with these institutions, in the world to carry out a joint project investment. Last year, China set up a $2 billion scale of Africa's mutual growth fund, which greatly increased its capital injection into AfDB.
China is launching a global financial mobilization
The European bank for reconstruction and development (EBRD) has recently approved China's entry into the country's application process for ten years and is handed over to the final approval by the members of the government. But EBRD membership is only a reflection of China's rapid ascent in the world's international financial institutions. The question now is China in the existing international financial institutions within the framework of forcing them to change, or another way.
The global financial crisis has shocked the international financial system, so many institutions are caught off guard. For example, the International Monetary Fund [microblogging] (IMF[microblogging]) in the previous few years, in fact, in the pursuit of a substantial reduction in the scale. But it also allows them to prove their courage. Many institutions, including not only IMF, but also EBRD and the European investment bank, have finally proved that they can respond flexibly, and therefore have won more and more power and more capital.
The crisis also shocked the G-7 - the root cause of the problem - the legitimacy of the status of G-20. In the middle of these changes, China has won the opportunity to increase its global influence. It is determined to seize this opportunity, even if some people want to oppose. For example, China plans to use the opportunity to serve as the G-20 president in 2016 to promote a large-scale schedule.
In fact, now speed China international participation range wide, fast has ever seen. China is a member of numerous multilateral institutions, including the African Development Bank (AfDB) and Pan American Development Bank (IDB) and other regional institutions -- and is in the process of deepening relations with these institutions, especially in the global common project investment to achieve this purpose by. For example, last year China established a $2 billion scale of Africa's common growth fund, a substantial increase in its AfDB injection.
Similarly, China's sovereign wealth funds in the world bank [microblogging] International Finance Corporation and EBRD are designed to play an important role in the role of anchor investors, long-term institutional capital into their projects. SAFE, one of the sovereign wealth funds, is currently the only investor in EBRD's investment vehicle, and China has not yet officially joined the EBRD.
China is also building new institutions. This year earlier, the establishment of Asian infrastructure investment bank (Asian investment bank) has attracted the attention of all over the world is not only because of strong opposition from the United States, also because Britain and Germany regardless of the opposition of the United States to join them. China in the BRIC countries (Brazil, Russia, India, China, South Africa), the establishment of the New Development Bank (NDB) also played a leading role in the NDB headquarters is located in Shanghai.
There is a $40 billion fund to support the Silk Road, "President Xi Jinping Belt and Road Initiative" strategic infrastructure needed for the project. The Belt and Road strategic aim is to improve with the entire Eurasian (Eurasia) regional trade and exchange links. So far as China's most ambitious plans, Silk Road Fund in the scale and scope of activities let more traditional international financial institutions to shame. The first project of the Silk Road Fund - Pakistan Karot hydropower station on the scale of $- $- including direct project loans and equity investment in the company responsible for the construction of the dam and the management of the company for 30 years.
The global financial crisis has shocked the international financial system, so many institutions are caught off guard. For example, the International Monetary Fund [microblogging] (IMF[microblogging]) in the previous few years, in fact, in the pursuit of a substantial reduction in the scale. But it also allows them to prove their courage. Many institutions, including not only IMF, but also EBRD and the European investment bank, have finally proved that they can respond flexibly, and therefore have won more and more power and more capital.
The crisis also shocked the G-7 - the root cause of the problem - the legitimacy of the status of G-20. In the middle of these changes, China has won the opportunity to increase its global influence. It is determined to seize this opportunity, even if some people want to oppose. For example, China plans to use the opportunity to serve as the G-20 president in 2016 to promote a large-scale schedule.
In fact, now speed China international participation range wide, fast has ever seen. China is a member of numerous multilateral institutions, including the African Development Bank (AfDB) and Pan American Development Bank (IDB) and other regional institutions -- and is in the process of deepening relations with these institutions, especially in the global common project investment to achieve this purpose by. For example, last year China established a $2 billion scale of Africa's common growth fund, a substantial increase in its AfDB injection.
Similarly, China's sovereign wealth funds in the world bank [microblogging] International Finance Corporation and EBRD are designed to play an important role in the role of anchor investors, long-term institutional capital into their projects. SAFE, one of the sovereign wealth funds, is currently the only investor in EBRD's investment vehicle, and China has not yet officially joined the EBRD.
China is also building new institutions. This year earlier, the establishment of Asian infrastructure investment bank (Asian investment bank) has attracted the attention of all over the world is not only because of strong opposition from the United States, also because Britain and Germany regardless of the opposition of the United States to join them. China in the BRIC countries (Brazil, Russia, India, China, South Africa), the establishment of the New Development Bank (NDB) also played a leading role in the NDB headquarters is located in Shanghai.
There is a $40 billion fund to support the Silk Road, "President Xi Jinping Belt and Road Initiative" strategic infrastructure needed for the project. The Belt and Road strategic aim is to improve with the entire Eurasian (Eurasia) regional trade and exchange links. So far as China's most ambitious plans, Silk Road Fund in the scale and scope of activities let more traditional international financial institutions to shame. The first project of the Silk Road Fund - Pakistan Karot hydropower station on the scale of $- $- including direct project loans and equity investment in the company responsible for the construction of the dam and the management of the company for 30 years.
At present, the Silk Road Fund for unilateral institutions, and China's National Development Bank and state-owned investment giant CITIC Group is similar in nature. But the Chinese authorities have welcomed the addition of other countries, although the size of the investment in China is small.
Despite China's huge investment projects, but China's leaders are still relatively conservative for institutional innovation. However, last year, the CPC officials discussed established a more experimental new multilateral financial institutions to promote "plans to rebuild the environment that support land reclamation, water purification and improve air quality in large projects.
It is no easy task to set up such an organization, because it requires global cooperation to gather political stakeholders, but also a huge amount of subsidies to make investment feasible. But such bold institutional innovation will fill an important gap in the global financial system, and consolidate China's leadership in environmental governance financing.
At the same time, China's institutions are on a smaller scale, the development of a more sophisticated, more convenient financing methods. For example, Asian investment bank's first president Jin Liqun announced ready to cancel the existing institutions that are some of the least efficient practices, such as permanent board of directors and the nationality of the limit.
In spite of this, China's increasingly important global financial role will not profoundly change the way the existing institutions operate. Of course, just as Jin Liqun stressed the loopholes in the existing system approach, they may help inspire reform. EBRD will no doubt benefit from China's attempts to expand its experience and scale.
However, the main purpose of the sub investment bank and the new development bank is not to change the multilateral financial situation, but to increase the strength of the multilateral financial, while China is able to establish the most advanced institutions. And as for the EBRD, China's share will be negligible, at least in the first case, China also said it was to learn. In fact, a joint venture with EBRD allows China Company to gain access to local knowledge when entering new markets - or even to get protection.
At present, greater participation in multilateral institutions to change in China than in turn, even in the case of the increase in the voting rights of China to be able to better reflect the extent of its contribution to the case. More recent distance learning experience of the old institutions, including how and civil society organizations, how to increase local ownership policy etc., help in refining the in Africa and other parts of the engagement strategy. This even allows China to improve its own development model.
However, in the long run, China's domestic development challenges, especially the rapid deterioration of the environment, may make it a more changing role in promoting global institutional innovation.
Syndicate Project all rights reserved, www.project-syndicate.org
Despite China's huge investment projects, but China's leaders are still relatively conservative for institutional innovation. However, last year, the CPC officials discussed established a more experimental new multilateral financial institutions to promote "plans to rebuild the environment that support land reclamation, water purification and improve air quality in large projects.
It is no easy task to set up such an organization, because it requires global cooperation to gather political stakeholders, but also a huge amount of subsidies to make investment feasible. But such bold institutional innovation will fill an important gap in the global financial system, and consolidate China's leadership in environmental governance financing.
At the same time, China's institutions are on a smaller scale, the development of a more sophisticated, more convenient financing methods. For example, Asian investment bank's first president Jin Liqun announced ready to cancel the existing institutions that are some of the least efficient practices, such as permanent board of directors and the nationality of the limit.
In spite of this, China's increasingly important global financial role will not profoundly change the way the existing institutions operate. Of course, just as Jin Liqun stressed the loopholes in the existing system approach, they may help inspire reform. EBRD will no doubt benefit from China's attempts to expand its experience and scale.
However, the main purpose of the sub investment bank and the new development bank is not to change the multilateral financial situation, but to increase the strength of the multilateral financial, while China is able to establish the most advanced institutions. And as for the EBRD, China's share will be negligible, at least in the first case, China also said it was to learn. In fact, a joint venture with EBRD allows China Company to gain access to local knowledge when entering new markets - or even to get protection.
At present, greater participation in multilateral institutions to change in China than in turn, even in the case of the increase in the voting rights of China to be able to better reflect the extent of its contribution to the case. More recent distance learning experience of the old institutions, including how and civil society organizations, how to increase local ownership policy etc., help in refining the in Africa and other parts of the engagement strategy. This even allows China to improve its own development model.
However, in the long run, China's domestic development challenges, especially the rapid deterioration of the environment, may make it a more changing role in promoting global institutional innovation.
Syndicate Project all rights reserved, www.project-syndicate.org
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