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Showing posts from May 11, 2018

European companies struggle to find opportunities in China’s Belt and Road Initiative

“Despite the opportunities associated with a $1 trillion initiative to improve connectivity across the Eurasian landmass, European companies have scarcely been able to get involved in implementing BRI projects”, Maurice Fermont, Adviser on Trade Policy at BusinessEurope, said at a conference on Constructing China’s Belt and Road Initiative in Southeast Europe, organised in Berlin. He highlighted that there are opportunities in sectors such as construction, logistics, engineering, and services as well as for legal, consulting, banking and insurance services. But until now European companies have not been able to engage fully. “This is mainly due to a chronic lack of information about projects and how to get involved in them, but also due to the way in which China has employed economic diplomacy, government guarantees, subsidies, Exim financing, and non-transparent tenders as a way to push projects through and allocate contracts to its own companies”, Fermont explained. According to re

The fishing port that may become a $10 billion Chinese debt bomb

By Bloomberg | Updated: May 11, 2018 Even without the potential military benefits of Kyaukpyu, the port’s commercial advantages make it a key part of China’s maritime Belt and Road strategy. By Jason Koutsoukis The town of  Kyaukpyu , nestled around a small  fishing port  on the  Bay of Bengal , has the air of a place expecting to get rich soon. In the seaside market, stalls of seafood unloaded from wooden fishing boats floating in the rubbish-strewn harbor have been joined by stacks of Chinese-made toys and smartphones. Nearby, cattle graze between building sites as high-rise offices and hotels replace weather-stained bungalows. Fine-dining rooftop restaurants and a golf course underline the sense of transition. Much of the development, and a jump in land prices, are anticipating a gigantic prize for this remote🔴 Myanmar town of 50,000 people: $10 billion to build a deep-sea port and industrial zone, financed by  China . The investment plan -- seven times the cost of Chinese-bu

Lenders look to Belt & Road

Reuters Staff * Loans: Infrastructure initiative seen driving growth amid M&A slowdown By Yan Jiang HONG KONG, May 11 (TRLPC) - Chinese loan bankers are pinning their hopes on President Xi Jinping’s Belt and Road initiative in search of an alternative growth engine amid a regulatory squeeze on outbound acquisitions. Chinese companies made acquisitions worth a total US$8.8bn in Belt and Road countries last year, commerce ministry data show, an increase of 32.5% over 2016. That rapid growth contrasts with the broader market for outbound Chinese acquisitions, where tougher regulatory scrutiny dragged non-financial investments down by one third in 2017. “After some hard work in the past few years, we’re building up a bigger pipeline of projects along the Belt and Road countries,” said a senior banker in Beijing. “Activities there are not affected by the new M&A rules.” China is drafting new rules to regulate foreign investment by state-owned enterprises, after introducing si

Africa's continental FTA complements China-proposed Belt and Road Initiative: officials

by Shiferaw Tadesse ADDIS ABABA, May 10 (Xinhua) -- The African Continental Free Trade Area (AfCFTA) complements the China-proposed Belt and Road Initiative in facilitating trade and cooperation among different countries, a senior African Union (AU) official said here on Thursday. The AfCFTA and the Belt and Road Initiative are complementary as both focus on infrastructure development and connectivity toward facilitating trade and cooperation among countries, AU Commissioner for Trade and Industry Albert Muchanga told Xinhua after attending a ceremony whereby Kenya and Ghana deposited documents with the (AU) of ratification toward establishing the AfCFTA. Proposed by China in 2013, the Belt and Road Initiative refers to the Silk Road Economic Belt and the 21st Century Maritime Silk Road. It is aimed at achieving policy, infrastructure, trade, financial and people-to-people connectivity, building a new platform for international cooperation, and creating new drivers of shared develop