Market forces to apply to the Belt and Road

The non-commercial banks of China Development Bank (CDB) and Export-Import Bank of China will provide a combined 380 billion yuan (US$55.2 billion) in specialized loans to invest in infrastructure, resources and financial projects in Belt and Road countries, according to details released from the Belt and Road Forum for International Cooperation held on May 14 to 15.

As for the usage of the specialized loans, responsible persons from the banks said that it will use market-oriented methods to operate the loans and use strict measures to mitigate risks, so as to achieve mutual benefits and win-win situations.

CDB said that it will provide 250 billion yuan (US$36.3 billion) of loans within three years to support the infrastructure and financial cooperation in Belt and Road countries. The Export-Import Bank of China said it will focus on the fields of equipment manufacturing, trade cooperation, zone construction and energy resources.

Statistics showed that CDB has released more than US$160 billion of loans since the launch of the Belt and Road Initiative. The Export-Import Bank of China has supported more than 1,200 related projects, with a contracted value of 700 billion yuan (US$101.4 billion).

Moreover, 54 commercial banks from 20 countries and regions along the Belt and Road have established branches and representative offices in China, seeking cooperation opportunities that arise from the initiative.