China needs money for the Belt and Road
Andrew Polk
Trivium Daily, 15 août 2017


 Xi’s Belt and Road Initiative (BRI) is often described as a trillion-dollar initiative.

That’s a lot of money, and it’s why China is exploring ways to attract funding for BRI projects.

PBOC vice governor Yin Yong and the bank’s head of research Sun Guofeng spoke at a recent forum on the BRI. Their goal is to find ways to make development finance go further. Some ideas:

  • Use more equity finance – that can help attract debt financing, to boot, so you get more bang for your buck.
  • Development finance should invest in public goods – like infrastructure – that improve the operating environment thus making other projects more commercially viable.
  • Development banks should sell assets to commercial banks so they can enter other projects. 

Get smart: BRI is Xi’s baby. A key message at May’s Belt and Road Summit was that China would not fund BRI alone. Expect more creative thinking from policymakers on how to attract outside capital.

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