China’s financial support for the Belt and Road Initiative: characteristics, challenges and policy implications *

SONG Shuang1 Wang Yongzhong2

(1.assistant research fellow at the Institute of World Economics and Politics, Chinese Academy of Social Sciences, Beijing, China)
(2.research fellow at the Institute of World Economics and Politics, Chinese Academy of Social Sciences, Beijing, China)

【Abstract】Since the Belt and Road Initiative was implemented in 2013, China has provided considerable financial support to the other countries along the Belt and Road routes through state-owned banks, investment funds and bond markets. Meanwhile, the initiative has faced increasing challenges, including great financing pressure and risks, low participation of private capital, underdeveloped capital markets, and imbalanced regional and industrial distribution. To smoothly implement the Belt and Road Initiative, China should lead relevant countries to build a financial cooperation framework, and priorities should be put on strengthening capital cooperation between domestic and overseas investors, enhancing public-private partnerships, improving capital market connections, and establishing a financial service system.

【Keywords】 the Belt and Road Initiative; financial cooperation; development finance; Silk Road Fund; public-private partnership;

【DOI】

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This Article

ISSN:1007-0974

CN: 11-3799/F

Vol , No. 01, Pages 108-123+7

January 2018

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Abstract

  • 1 China’s financial support for the Belt and Road Initiative: current situation and characteristics
  • 2 Challenges confront China’s financing support for the Belt and Road Initiative
  • 3 Suggestions on improving the framework for China’s financial support for the Belt and Road Initiative
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