Latest news with #BeltandRoadInitiative
Hindustan Times
32 minutes ago
- Business
- Hindustan Times
China securing loans to low-income nations with revenue streams in Chinese banks
New Delhi: China is securing loans to low-income and developing nations with commodity revenue streams and cash held in restricted escrow accounts in Chinese banks, with such practices implemented for almost half of the total loans worth $991 billion, according to a new study. China significantly ramped up loans to developing countries in Asia, Africa and Latin America after launching its Belt and Road Initiative (BRI) in 2013. (Representational image) The study, done by the Kiel Institute for the World Economy, AidData and Georgetown University and Oxford University and released on Thursday, found such practices prevalent in some of India's neighbours, such as Myanmar, where the country's gas revenues are being deposited directly into restricted Chinese bank accounts. In the case of Pakistan, the country is required to simultaneously hold cash collateral in four Chinese escrow accounts. Figures are available for holdings in only one account, and the overall cash holdings in the four accounts are likely to be significantly larger, according to the study titled 'How China Collateralizes'. The partially government-guaranteed loan from Bank of China and China Eximbank for the 1,320-MW Patuakhali thermal power plant project in Bangladesh was supported by 50% equity stakes that Bangladesh's Rural Power Company Ltd and China's NORINCO International Cooperation Limited hold in a special purpose vehicle responsible for the venture. China significantly ramped up loans to developing countries in Asia, Africa and Latin America after launching its Belt and Road Initiative (BRI) in 2013, but there have been significant concerns about the opacity surrounding agreements covering both loans and projects taken up under BRI. In December 2017, Sri Lanka handed over the strategic port of Hambantota to China on a 99-year lease after struggling to pay debts to Chinese firms. India never signed on to BRI because a significant component - the China-Pakistan Economic Corridor (CPEC) - passes through Pakistan-occupied Kashmir. The Indian side also has concerns about the lack of a level playing field under BRI. The study said China's total public and publicly guaranteed lending to low-income and developing countries between 2000 and 2021 was worth $911 billion, and nearly half - or $418 billion provided to 57 countries - is secured with cash deposits in Chinese bank accounts. The study concluded China's practices are impeding the ability of borrowing countries to effectively manage their finances. Borrowing countries are forced to route incomes from their main commodity exports to Chinese bank accounts, the study said. 'Our findings reveal a previously undocumented pattern of revenue ring-fencing, where a significant share of commodity export receipts never reaches the exporting countries,' it said. 'Revenues routed overseas secure priority repayment for the creditor; they remain out of public sight and largely beyond the borrower's reach until the secured debts are repaid,' it added. More than 60% of collateralised public and publicly guaranteed loans by Chinese creditors to low-income and developing countries rely on collateral unrelated to the stated purpose of the debt, the study said. This means bank accounts securing Chinese infrastructure project loans are not typically funded from project revenues. Instead, most cash flows come from sales of the borrowing country's leading commodity export, such as gas in Myanmar and Indonesia, oil in Angola, and copper in Congo. A state-owned enterprise of the borrowing country typically agrees to sell commodities under an offtake agreement with a Chinese state enterprise, and both enterprises 'agree to deposit the proceeds directly into bank accounts that secure unrelated infrastructure finance', the study said. 'Chinese creditors and their debtors have taken extraordinary measures to shield the use of escrow accounts - and the cash deposits that they hold - from public scrutiny,' the study said. The deposits in Chinese bank accounts, which are controlled by the lending entities, can average more than 20% of annual payments made by low-income countries to service external debt, the study found. 'Some of these revenues remain offshore beyond the control of the borrowing government for many years,' it said, adding the lack of access or transparency compromises the ability of borrowing countries to monitor and manage their fiscal affairs. Another important feature of Chinese lenders using cash collateral pools is that they simultaneously act as security for multiple debts. Cross-collateralisation accounts for 46% of China's collateralized public and publicly guaranteed lending volume to low-income and developing countries and this 'can exacerbate debt distress and complicate a debt restructuring if multiple creditors have competing rights to the same assets', the study said. The study also found that a common source of collateral supports multiple loans from the same Chinese creditor, and this practice 'poses a different challenge: it can cede government control over assets or revenue streams to a single creditor for long periods of time, until all the underlying debts for all the financed projects or programs are repaid'. Such a process can take decades, the study said.
Egypt Independent
2 hours ago
- Business
- Egypt Independent
Chinese experts at Al-Masry Al-Youm symposium warn that US and Israel are harming global economy
An assortment of Chinese economic experts from the Shanghai Academy of Social Sciences attended an Al-Masry Al-Youm seminar with international experts, where they affirmed that Israel's wars on the Gaza Strip and Iran will impact the global economy. The experts also warned of the negative impact that American tariffs will have on the world, and how Washington seeks its own success over the expense of others. Belt and Road Referring to the importance of the 'Belt and Road' initiative as a step towards a shared future and a path to peace, the experts discussed China's plans to eradicate poverty. They also touched on the revolutionary potential of AI technology and how it can be used to help treat previously incurable diseases. The Vice President of the Chinese Academy of Social Sciences in Shanghai, Wu Xiuming, raised the importance of understanding the the 'Chinese Modernization Model,' which aims to eradicate poverty in China. Xiuming also touched on aiding friendly countries to China, such as Egypt, in in its economic advancement through investment projects as well as combating poverty. He explained that there is a common goal through a strategy for all countries, taking into account that each region and nation has its own characteristics. He emphasized that transferring China's experience does not necessarily have to be an exact translation, as each country has a specific population range compared to China, which exceeds 1.4 billion people. Xiuming assured that China has not and will never follow colonialism, and supports 'progress and peace for all'. Thus through the 'Belt and Road' initiative, Beijing is working to promote economic and security peace, and numerous mega projects are underway, such as the Administrative Capital in Cairo. Beijing commended the progress of the projects achieved in Egypt, which will benefit future generations. Xiuming also pointed out that through his visit to Cairo, he is better learning on how to benefit from the Belt and Road Initiative, address obstacles, solve problems, and overcome them. America's tariffs threaten global economic security A Professor of Economics at the Institute of Chinese Studies and Chinese Academy of Social Sciences, Xie Yiqing, discussed the issue of tariffs imposed by the US on many countries around the world. China bore the brunt of these unjustified tariffs, which has impacted both the US and China. Despite Washington's 90-day reprieve, China was already impacted within a month. If tariffs are reimposed, it will harm the global economy, with businesses closing and tourism impacted. She explained that China feels responsible and is not against the American government, but warned that Trump's administration is harming the world at a time Beijing seeks to be fair in its decisions. China sees Trump's America as believing that Washington should be the winner above all, while China is working on fair distribution. 'If there is a 'cake,' the US wants to eat it alone, but China wants everyone to eat, regardless of who gets the bigger or smaller piece, but the important thing is that everyone eats and benefits,' she explained. Israel's brutal war harms the global economy An academic and deputy editor-in-chief of the Journal of Social Sciences, Sheng Li, who is interested in the foundations of international trade, said that certain steps lead to the development of the international economy. Although international trade has undergone changes and leaps, there is an optimistic view of international trade, and the evidence for this profitability being achieved. Li however warned that the international economy is negatively impacted by wars, and noted the harm that Israel's war on Gaza and Iran will have on global trade. Yet despite the international conflicts and disputes, optimism in the global economy remains. The benefits of Artificial Intelligence Li explained that in order to develop the global economy, scientific research must be advanced through technological revolution and artificial intelligence in order to promote globalization, which the Belt and Road Initiative is part of. However China will not force anyone to fall under the initiative, and instead it exists to generate profits and provide job opportunities. He called for the importance of long-term scientific cooperation and economic development, which will lead to political stability rather than chaos. Li noted that Beijing is working to embrace AI and harness its potential for greater benefits, as it has already had an impact on everything through research, job creation through innovation, and improved living conditions. The Vice President of the Chinese Academy of Social Sciences in Shanghai, Wu Xiuming, believes that AI is a means, not an end. Through its revolution in this field, it has been able to change everything. At Shanghai University and the Chinese Academy of Social Sciences, transportation research takes at least a week, while the DeepScience AI application has succeeded in completing it in 30 minutes. So it works to shorten the time, and in the midst of the information revolution, it has an impact on energy, electricity, and all jobs. He gave an example of how, in order to advertise a product on the beach, and to work on having a model go, and choosing the appropriate time and circumstances, all estimates indicate that it would take several months to film it, AI has shortened that to just 30 minutes. AI has also made impressive results in the medical field through the analysis and examination of genetic and incurable diseases, and the administration of medications and treatment by entering the medical history of the patient. This means that AI will bring about a strong breakthrough in the diagnosis and treatment of diseases, which will be even more accurate. He continued: 'Within the next three to five years, there will be a comprehensive change in artificial intelligence and the revolution it will bring about. However, it will not eliminate jobs or provide alternatives, nor will it eliminate human labor – rather, they will employ it. Therefore, the outlook is not pessimistic, as it will eliminate real jobs. On the contrary, it will eliminate jobs that are useless and will create major jobs that will benefit the international community.' Combating poverty The Chinese experts in international economics at the Shanghai Academy of Social Sciences emphasized the importance of the Belt and Road Initiative as a step toward a shared future and a path to peace, while also noting China's plans to eradicate poverty. The experts explained that through the academy's research, the concept of 'peaceful development' was emphasized as a Chinese cultural tradition, and that the government is working to combat poverty through self-reliance and hard work. This serves to enhance international cooperation, as history shows that by designing rules, cultural ties, and economic balance, major powers can build a new model of peaceful coexistence, which is what the Chinese Communist Party emphasizes. China's efforts to reduce poverty and achieve common prosperity were emphasized, including prioritizing agriculture, laying the foundation for food security, strengthening targeted poverty reduction to help the rural poor prosper, and promoting rural revitalization through the 'Ten Thousand Villages' project. It is also leading the transformation towards rural modernization, narrowing the 'income gap,' enhancing income distribution, and reforms to reduce social polarization. Experts stressed that poverty reduction remains a common challenge for countries around the world. Since the founding of the People's Republic of China, the Chinese government has launched large-scale and sustained efforts to alleviate poverty, achieving remarkable results. Beijing has succeeded in eliminating poverty for about 100 million people. The Chinese government has put forward a comprehensive vision for China's future development and identified five distinct features along China's path to modernization: livable and vibrant homes, providing several policy measures to boost farmers' income growth, promoting rural work and human rights, developing agricultural production capacity, a new socialist countryside, and issuing decisions on accelerating water reform and development. They pointed out that, according to the National Bureau of Statistics of China, China's total grain production last year reached 707 million tons, an increase of 11.1 million tons over the previous year—a growth of 1.6 percent. This marks the first time that grain production has exceeded the 700 million-ton threshold since then. This has also boosted China's economic recovery and supported high-quality development, and has contributed to the stability of the global food market.
Scoop
3 hours ago
- Business
- Scoop
Solomon Islands Media Professionals Gain Insightful Experience Of China's Media, Culture, And Mesmeric Growth
Four media professionals from the Solomon Islands (SI) successfully completed a two-week seminar on Full-Media Communication for 'Belt and Road Countries' in China, describing the training program as an eye-opener as cooperation between the two countries further deepened. Organized by the Research and Training Institute of the National Radio and Television Administration (RTI of NRTA), the seminar ran from June 6th to 19th, 2025. Participants included 30 media professionals from national broadcasting and television authorities, mainstream media organizations, and influential private media institutions in Belt and Road Initiative countries, including Bulgaria, Grenada, Hungary, Mongolia, Mozambique, Palestine, Romania, South Sudan, Tonga, and the Solomon Islands. Most participants were Directors, Managers, Editors, and Senior Journalists. Representing the Solomon Islands are: Frederick Osifelo, Manager of the Television Services of Solomon Telekom Company Limited (STCL) Stephen Hachi, Producer & Technical Director of NIU Solomons Karl Tokuro Vaekesa, CEO, Producer & Director of Studiohomegrown Productions Company, Solomon Islands Stephen Diisango, Director of Communication & Public Relations, Ministry of Rural Development, Solomon Islands Government The program was another testament to the Chinese government's ongoing commitment to promoting communication and mutual understanding between China and the Solomon Islands, as well as providing more support for sustainable development in the Solomon Islands. The trip was a success, providing participants with the opportunity to learn about, appreciate, and experience China's rich history, culture, and traditions. It also helped them understand China's media landscape, functions, and how media plays a critical role in the country's governance. Sharing their experiences, the Solomon Islands delegates said that the trip was an eye-opener and an experience of a lifetime. 'The program was more than just a trip — it was a testament to firm collaboration, shared learning, mutual understanding, and reverence. 'China's infrastructure development, agriculture, technology, and manufacturing sectors are remarkable. Likewise, China's success in lifting millions out of poverty is a momentous triumph and offers valuable lessons for other developing countries, including the Solomon Islands,' they said. Despite ongoing Western narratives and negative portrayals of China in the public domain, participants stated that their perceptions of China have now completely changed. They vowed to promote truthful information about China's reality to family members and citizens of the Solomon Islands. 'This trip to China is an experience of a lifetime. We have learned a lot and built new connections with participants and friends from around the world. Our country, Solomon Islands, has a lot to learn from China, as do the rest of the world. We believe China has much to offer globally. 'Chinese people are among the kindest and most loyal you can find anywhere. They are hardworking, polite, and respectful,' the SI participants attested. They further noted that China's firm commitment to working alongside Pacific countries, including the Solomon Islands, in areas such as infrastructure, telecommunications, education, agriculture, environment, and health cooperation is impressive. The program also provided an opportunity for delegates to visit some of China's leading media organizations, historical sites, and heritage sites in Beijing and Yunnan Province to witness China's rapid development over the years. In Beijing, the delegates visited omnimedia institutions such as China Media Group Mobile, Kuaishou Technology, and iQIYI, engaging with omnimedia creators to gain insights into the integration and transformation of China's mainstream media, as well as concepts of omnimedia communication and operation. They also travelled to Yunnan Province, visiting Yunnan Media Group, Kunming Broadcasting and Television Company, China Radio and Television Yunnan Network Co., Ltd., Kunming Media Convergence Center, Yunnan's key laboratory of Artificial Intelligence (Kunming University of Science & Technology), Yunnan Museum of Traditional Chinese Medicine and Shilin One County, One Industry Ginseng Fruit Industrial Base & Xinglin Grand Garden. On the cultural front, participants took the opportunity to visit Chinese landmarks such as the Great Wall, the Temple of Heaven, Yunnan Nationalities/Ethnic Village, and Shilin Global Geopark Scenic County, exploring China's rich historical and cultural heritage. The Solomon Islands delegates expressed profound gratitude to the Chinese Embassy in the Solomon Islands, the Solomon Islands Government, and the organizing committee of RTI of NRTA for the opportunity to participate in the seminar. Since the formalization of diplomatic relations between China and the Solomon Islands in 2019, China has consistently shared advanced technology, management experience, and development concepts aligned with the Solomon Islands' development strategies and needs, helping to cultivate specialized talents. In the first six months of 2025, over 300 Solomon Islands officials and professionals benefited from capacity-building programs in China across various fields such as agriculture, infrastructure, communication, education, health, media, and climate change. These efforts have contributed to promoting the economic and social development of the Solomon Islands, fostering governance exchange, knowledge sharing, skills development, people-to-people relationships, and laying a solid foundation for long-term cooperation and mutual growth. The seminar was funded by the Ministry of Commerce (MOFCOM) of the People's Republic of China.
Malaysia Sun
21 hours ago
- Business
- Malaysia Sun
Hong Kong to promote professional services of infrastructure, construction in Indonesia, Malaysia
JAKARTA/KUALA LUMPUR, June 27 (Xinhua) -- The Hong Kong Special Administrative Region (HKSAR) government will promote its professional services in Indonesia and Malaysia related to infrastructure and construction, and explore opportunities for cooperation. The HKSAR government's Commissioner for Belt and Road Nicholas Ho led a delegation to visit the two countries between June 23 and June 26 to learn about the latest economic and infrastructure developments and explore opportunities for Hong Kong's professional services to participate and contribute. During the visit, Hong Kong representatives signed 21 memoranda of understanding with their partners in Indonesia and Malaysia, covering areas of business collaboration and exchanges in professional services. During the stay in Jakarta, Indonesia, Ho visited a data center, an investment development project of a Hong Kong company, to learn about how the data center contributes to the development of the Digital Silk Road in promoting connectivity. "The Association of Southeast Asian Nations is Hong Kong's second-largest trading partner and a key link in the Belt and Road Initiative (BRI). Indonesia and Malaysia are both undergoing rapid infrastructure development, and there is huge demand for professional services in large-scale projects such as the new capital city of Nusantara in Indonesia and the mass rapid transit system in Malaysia," said Ho. Hong Kong, as a "super connector" and a "super value-adder," is connected to international standards in fields such as financing, law, construction engineering, project management, logistics and transportation, and innovative technology, said Ho. Ho said that Hong Kong also has a deep pool of professionals with experience, especially in taking forward public-private partnerships in infrastructure projects, presenting extensive room for collaboration with Indonesia and Malaysia to seize the opportunities brought by the BRI. He added that as an international financial and trade center, Hong Kong possesses the advantages of convergence of capital and talent, and is committed to giving full play to its role as a functional platform for the BRI.
Newsweek
a day ago
- Business
- Newsweek
Indonesia's First Bullet Train Reaches Major Milestone
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Indonesia's Jakarta-Bandung high-speed railway has surpassed 10 million passenger trips since it began operations in 2023. The 142-kilometer rail line connects Jakarta with Bandung in West Java, cutting a three-hour drive to a 46 minute-train journey. Newsweek contacted the network owners, Kereta Cepat Indonesia China, for more information on the milestone via email. Why It Matters The high-speed rail link, a joint venture under China's Belt and Road Initiative, is Indonesia's first infrastructure project of this kind. China leads the world in high-speed rail development and the project symbolizes deepening infrastructure cooperation between the countries. A Jakarta-Bandung high-speed train is seen at the Tegalluar station depot in Bandung, West Java, on January 17, 2024. A Jakarta-Bandung high-speed train is seen at the Tegalluar station depot in Bandung, West Java, on January 17, 2024. Getty Images What to Know The high-speed railway is now operating 62 daily train services, up from 14 during its initial phase, accommodating more than 37,000 passengers per day. Trains operate at speeds of up to 220 miles per hour. Some trains have recorded occupancy rates as high as 99.6 percent, particularly during peak travel seasons like Ramadan and Christmas, according to China Railway International reports seen by The Star. Construction of the Jakarta-Bandung High-Speed Railway began in 2015 after delays caused by land acquisition and funding concerns. Built at an estimated cost of $7.3 billion, the project is operated by the joint Sino-Indonesian Kereta Cepat Indonesia China consortium. Funding was secured through a combination of equity and loans from the China Development Bank, with Indonesia holding a minority stake. The railway's operation is overseen by the Sino-Indonesian Operation and Maintenance Consortium. Key operational practices, like emergency preparedness and earthquake resilience protocols, are adapted from Chinese high-speed rail standards. As of June 2025, more than 600 Indonesian personnel have completed railway training programs, with 263 certified by Indonesia's Ministry of Transportation. These include 34 train drivers who now independently operate trains under Chinese mentorship, a foundational step toward full local operation. What People Are Saying Danang Parikesit, professor of transport policy at Gajah Mada University, told Voice of America that the partnership between Indonesia and China was very important for future infrastructure expansion, saying: "Indonesia's long-term development plans will be able to cut logistical costs by half. "That's why we need international partners to invest and improve our highways, railways system, ports and airports as well as other infrastructure like gas pipes and floating storage. "Diversifying and extending partnership with other countries will provide a better base for our future transportation development. So I believe we need to balance between the urgent need for our transport investment and to diversify our partnership, taking the best of what different countries can offer." What's Next According to China Railway International, both Indonesian and Chinese rail partners are committed to making the Jakarta-Bandung High-Speed Railway a model of regional transportation efficiency. Plans for future phases or extensions of the high-speed network remain under discussion, with the current focus on solidifying stable operations and local workforce development.
