China’s Money Issues On “Golden Bridge On Silk Road”

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According to expertise, China region is urgently looking for support from international lenders to close a wide financing gap for projects under its “Belt and Road Initiative”. Vice-governor of the People’s Bank of China, Yi Gang’s remarks come just days ahead of the Belt and Road Forum for International Cooperation on Sunday and Monday. To learn about China’s blueprint trade scheme 29 countries leader will gather in Beijing. Yi said,” Infrastructure and other key projects in belt and road countries had “strong demand for ­financing”, and support from the global market was “desperately needed”. As compared with the other country like the United States, China had invested $50 billion in belt and road countries since President Xi Jinping introduced in 2013.

Vice-chairman of the China Banking Association, Pan Guangwei said, “Most projects are financed by Chinese financial institutions, while the participation of international institutions is relatively ­limited”. Further, he added, “Many infrastructure projects were long-term and required large amounts of investment, so a system of “policy banks, commercial lenders and international ­development institutions” was needed to ensure their financial sustainability”. Hong Hao, chief strategist at Bocom International, said,” I’m not optimistic about ­other parties’ active participation,” Hong Hao, chief strategist at Bocom International”. “When they believe the initiative is mainly aimed at building up China’s sway, instead of providing profitable projects, few will be ­interested”, he said.