The European Investment Bank and the AIIB co-invest in India
The European Investment Bank and the AIIB will co-finance a new Bangalore Metro Rail Corporation project in India. Their investment will help construct 18 new metro stations and will purchase 96 train cars for the Rapid Transit Line. This is the first infrastructure project the two investment banks are jointly financing.
ADB invests in Cambodia to improve cross-border trade
The ADB is loaning Cambodia 70 million USD as part of the ADB Greater Mekong Sub-Region Southern Economic Corridor program. The economic corridor aims to better connect Cambodia, Vietnam and Thailand for cross-border trade. The loan will fund road improvements and "hybrid project-based" agreements with contractors.
The ADB and World Bank invest in Sri Lankan infrastructure
The ADB will provide 900 million USD to upgrade Sri Lanka's road network, while the World Bank is loaning Sri Lanka 125 million USD. The road project will be completed in 2026. Read more here.
The ADB will fund private infrastructure investments in Asia-Pacific
The ADB is processing 500 million USD in funding for infrastructure development in the Asia and Pacific region. Two projects are being approved through the Leading Asia's Private Infrastructure Fund (LEAP) and total over 200 million USD.
The ADB's role in Indonesia
ADB investment to Indonesia has changed from agricultural development to economic development. After the 2007 Asian Financial Crisis hit Indonesia especially hard, the ADB and other foreign investors stepped in to bolster the Indonesian economy. Since then, the ADB has expanded its loans to Indonesia and no longer limits them to specific projects. Instead, they work towards general economic structural reforms. The bank’s evolving role in Indonesia has had a positive effect on the country, aiding as a development agency and as a financial institution.
The Philippines confirms their support of the One Belt One Road Initiative
In a forum last week in Beijing, Philippine Finance Secretary, Carlos Dominguez, reiterated the Philippine Government's support for the One Belt One Road initiative. The Chinese Commerce Department has encouraged the Philippines to utilize resources from the AIIB and the Silk Road fund for infrastructure development and this cooperation set the foundation for a supportive relationship between the two countries. Bilateral agreements have also increased, with Chinese companies increasingly investing in development of the Philippines.
Japan and China look to improve relations?
Both the Japanese Prime Minister Shinzō Abe and Chinese Ambassador to Japan Cheng Yonghua want to see the Sino-Japanese relationship improve. In May, Prime Minister Abe expressed interest for Japan to join the AIIB. This would leave the U.S. as the only major nation to not participate in the organization. Prime Minister Abe also joined in a celebration for China's National Day and was the first Japanese Prime Minister to do so in more than fifteen years. It is speculated that these steps towards reconciliation are related to Japan's changing relations with the United States.
However, Chinese Foreign Minister Wang Yi stated shortly after that before this relationship can improve Japan must make some concession, specifically in regards to Taiwan’s recognition and Japan’s participation in U.S.-led regional war games. Read more here.
China encourages US participation in the AIIB
The Center for China and Globalization (CCG) held a summit in Washington D.C. that introduced the prospects of Sino-U.S. cooperation. China suggested that the U.S. and China strengthen their cooperation in infrastructure constructions and trade. They also recommended that U.S. join the AIIB, and work with China to promote the One Belt One Road initiative.
The US backs India
The U.S. defended India's opposition to the China-Pakistan Economic Corridor, citing that it would pass through the disputed territory of Kashmir and serves only to expand Chinese influence on the continent.
Afghan and ADB leadership reaffirm their partnership
ADB Vice President Wencai Zhang met with Afghanistan President Ashraf Ghani as well as the Minister of Finance and ADB Governor Eklil Ahmad Hakimi during the third Senior Officials Meeting. They met to discuss the ADB’s new Country Partnership Strategy and to reaffirm the ADB'S commitment to Afghan infrastructure development.
The ADB says Pakistan is vulnerable to climate change
The ADB released a report stating that Pakistan requires 40 billion USD to combat economic and developmental threats from environmental changes. The bank found agricultural issues, the need to improve road and to protect against natural disasters. So far no money has been issued.
Pakistan looks for foreign direct investments
The Pakistan Board of Investment is hoping to increase foreign direct investment to the country to 250 billion USD by 2025. Their plan will market the China-Pakistan Economic Corridor (CPEC) as a catalyst for further development in Pakistan and as an opportunity to maximize revenue gained from the CPEC. However, a majority of Chinese investment is distributed as loans, not foreign direct investments. Most of the projects under the CPEC are focused in the energy sector, with several infrastructure projects underway in Gwadar.
The Export-Import Bank finances solar energy in Argentina
Argentina is starting to construct the Cauchari solar park, which will be the largest in Latin America with a capacity of 300 megawatts supplied by 1.2 million solar panels. The park is expected to provide ten percent of Argentina’s power supply needs by 2028. It has attracted 511 million USD in investment from the U.S. and China. The Export-Import Bank of China will provide loans to finance part of the project. Read more here.
China eyes Argentina Oil Assets
China is an increasingly assertive investment player in the Western Hemisphere. In an effort to diversify its oil sources, the Chinese oil and gas company Sinopec has offered to buy out Argentinian assets valued at 1 billion USD. Attracting energy investment is a priority for Argentina and there is clear market with China, the world's second largest consumer of oil.
Zambia warns other African nations receiving Chinese investment
Zambia has been one of the largest beneficiaries of Chinese investment through the Forum on China-Africa Cooperation, receiving over 8 billion USD. But the Zambia Institute for Policy Analysis and Research believes that China may have ulterior motives guiding its investment policy. While Chinese investment is not inherently bad, the Institute asserts that it is important for smaller African countries to evaluate the impact of Chinese investments on the trade and political imbalances associated with it.
Total Chinese investment in Africa reaches over 66 billion USD
The third Forum on China-Africa Cooperation was held this year in Dakar, Senegal. Since 2005, China has invested in 293 projects in Africa amounting to 66.4 billion USD and creating more than 130,000 jobs. More than 10,000 Chinese enterprises are investing in Africa and around 90 percent are private enterprises. This includes the construction of a pharmaceutical factory in Mali, and plans to begin constructing the Ethiopia-Hunan Industrial Park in Adama, Ethiopia.
The Chinese Development Bank increases funding to Africa
The Chinese Development Bank Vice President Wang Yongsheng announced the bank plans to expand 50 billion USD in loans to 43 African countries to promote the development of agriculture, manufacturing, and infrastructure.
The One Belt One Road Initiative benefits the Chinese automobile industry
China's automobile manufacturing industry has accelerated its “going global" approach thanks to the initiatives of the One Belt One Road (OBOR) framework. The OBOR has allowed the automobile sector in China to form new partnerships, to establish joint ventures, and to compete in a business environment that is more favorable to China.
Chinese car brands, automobile manufacturing and production are integrating with markets abroad, supplying the growing demand from Africa to Latin America. Chinese carmakers are hopeful that the OBOR will allow the industry to compete better with Japan and South Korea, whose industries have long held influence in the global market. By consolidating efficient market strategies, China hopes to force foreign automobile firms to re-orient their strategy around Chinese auto-manufacturing.
GDP growth looks good for China
The World Bank has raised China’s projected GDP growth from 6.5 percent to 6.7 percent, citing an improving external environment and rising domestic demand. The ADB also raised its growth projections for China, citing similar reasons.
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