Little more than a decade ago, China was a relatively minor actor in global investment and finance. By 2014 it had become the second largest global investor, second only to the United States. Outbound investment has been made possible due to strong backing from the Chinese state and financing from its policy and commercial banks. In recent years, China has promoted the establishment of new financial institutions and initiatives, including the multilateral Asian Infrastructure Investment Bank (AIIB). China has also established investment funds such as the Silk Road Fund to provide further capital for outbound investment. These new institutions focus heavily on infrastructure development, and with support from its One Belt One Road initiative, China is set to expand its role in global infrastructure financing significantly in the coming years.
This publication seeks to increase public awareness of these institutions and initiatives, how they will potentially impact on local communities and the environment, and what environmental and social standards and governance systems they have adopted. It also discusses strategies that civil society groups could deploy to respond to these developments and influence the policies, projects and operations of Chinese-led finance institutions.
Seven chapters of the report include; The Evolving Role of China in Global Finance, The Asian Infrastructure Investment Bank, The One Belt One Road Initiative, Chinese Investment Funds Operating in the ASEAN Region, China's Policy Banks: Financiers of the Going Out Strategy, Implications for Instrastructure Financing in the ASEAN Region, and The Growth of Chinese Overseas Finance and Investment: Opportunities for Civil Society to Respond.
The research and development of this publication was supported by: Heinrich-Böll-Stiftung South East Asia, The McKnight Foundation and Planet Wheeler Foundation.
Table of contents:
Background: The Evolving Role of China in Global Finance
Lack of Representation of Emerging Economies at Established IFIs
Frustrations Regarding Efficiency of Existing International Financial Institutions .
Global Demand for Infrastructure Finance
China’s Increasing Importance as Global Developer, Investor and Financier
Slowdown of the Chinese Economy and Domestic Overcapacity
The Asian Infrastructure Investment Bank
Sectoral Focus and Approach of the AIIB
Shareholding and Voting Powers
Structure and Management of the AIIB
AIIB Commitments to Transparency and Anti-Corruption
Environmental and Social Safeguards
Interaction Between AIIB and Other Financial Institutions
The One Belt One Road Initiative
What is One Belt One Road?
Motivations for Establishing One Belt One Road
Management of One Belt One Road
Environmental and Social Safeguards Attached to One Belt One Road
One Belt One Road Projects and the ASEAN Region
Financing for Projects Within the One Belt One Road
Chinese Investment Funds Operating in the ASEAN Region
The Silk Road Fund
Silk Road Fund Environmental and Social Standards
China-ASEAN Investment Cooperation Fund
China-ASEAN Investment Cooperation Fund’s Environmental and Social Standards
China’s Policy Banks: Financiers of the Going Out Strategy
China Development Bank
China Development Bank Environmental and Social Standards
Export-Import Bank of China
Eximbank Environmental and Social Standards
Implications for Infrastructure Financing in the ASEAN Region
Increased Access to Infrastructure Financing: New Risks or New Opportunities?
Social and Environmental Standards of Chinese Financiers
The Response of Other Nations and Institutions
The Development of China’s Role in the ASEAN Region
The Growth of Chinese Overseas Finance and Investment: Opportunities for Civil Society to Respond