A Dialogue between Asia and Europe Initiated in Chongqing Acceleration of “The Belt and Road” and “AIIB”

□ Article/ Journalist Xiong YI Tr. by Li Jinfang

A Dialogue between Asia and Europe Initiated in Chongqing Acceleration of “The Belt and Road” and “AIIB”

□ Article/ Journalist Xiong YI Tr. by Li Jinfang

In May 2017, at the fi rst the Belt and Road Forum for International Cooperation held in Beijing, President Xi Jinping declared that China would scale up financial support for the Belt and Road Initiative by contributing an additional fund of 100 billion RMB to Silk Road Fund, encourage fi nancial institutes to develop overseas RMB fund business with an estimated amount of 300 billion RMB;China Development Bank and Export-Import Bank of China would set up special lending schemes respectively worth 250 billion RMB equivalent and 130 billion RMB equivalent to support the Belt and Road Cooperation on infrastructure, industrial capacity and fi nancing.

Back to May 27-28 of 2015, the ASEM Industry Dialogue on Connectivity, hosted by China’s Foreign Ministry, NDRC, and China’s Ministry of Commerce and organized by Chongqing Municipal People’s Government and China Center for International Economic Exchanges, was held in Chongqing,providing mechanism support for the substantial cooperation to move forward Asia-Europe connectivity. The participants, through Chongqing Campaign, appealed to the close communication and coordination between the World Bank, Asian Development Bank,European Investment Bank, the up-coming Asian Infrastructure Investment Bank and other fi nancial institutes for a better effect on the funding of Asian-Europe infrastructure. This dialogue lends a new impetus to the Belt and Road international cooperation by strongly boosting financial institutes like Asia Investment Bank to make stronger fi nancial support on infrastructure construction of Asia-Europe connectivity.

This dialogue, the first industry dialogue held under ASEM framework, is of great practical significance for promoting Asia-Europe cooperation. Both of the participants of ASEM and the representatives of industry and commerce, government circle and academic circle appeal to push ahead Asia-Europe infrastructure connectivity, build open Asia-Europe trade and investment system, work forward openness in Asia-Europe financial market and innovation in investment and fi nancing, improve cooperation level in Asia-Europe industry chain, value chain and innovation chain, deepen cultural exchange, perfect Asia-Europe policy communication and coordination mechanism.

From the keynote speech of the plenary session to the detailed discussion of sub-forums, “The Belt and Road”, “AIIB” and “Silk Road Fund” have been buzz words. Dominique de Villepin, former French Prime Minister, Zheng Yongnian, president of East Asian Studies of National University of Singapore, Jin Qi,president of Silk Road Fund made speech on the topics of the cooperation between China and Europe in emerging industries of internet and high technologies,the establishment of large-scale industrial parks in the countries participating in the Belt and Road Initiative,the efforts to advance diversified investment model to provide effective financial support for international cooperation of the Belt and Road Initiative.

In recent years, China has made diversified forms of financial cooperation with the participating countries and organizations of the Belt and Road Initiative. In the past two years since the establishment of Asian Infrastructure Investment Bank, it has lent $1.7 billion of loans to 9 programs started by the participants of the Belt and Road, leveraged $12.5 billion from public and private sectors. By May 2017, Silk Road Fund has propelled 15 projects signed; the committed investment amount has reached $6 billion, of which $4 billion has completed. The investment covered the participating regions of Russia, Mongolia, Central Asia, South Asia, Southwest Asia, and West Asia, North Africa and Europe and the four major fi elds of infrastructure,resource development, industrial cooperation and financial cooperation. In November 2016, China-Central and Eastern Europe Financial Holdings Ltd. was found in Tandoori, the capital of Latvijas Republika. The company initiated the establishment of China-Central and Eastern Europe Fund, which would reach 10 billion euros with 50 billion euros of project leveraging credit fund.

Nowadays, the Belt and Road Initiative has become the longest economic corridor, bridging Asian and Europe to further development. With increasingly close links between Asia and Europe, Asian countries have gradually reached to a consensus on the urgency and necessity of strengthening connectivity. Chongqing,locating in the important link of the Belt and Road Initiative and Yangtze River economic belt and featured by linking the east to the west, connecting the south to the north and having rivers passing through, is in the prominent place in the general pattern of China’s opening up and regional development. Through this dialogue, Chongqing made further steps to strengthen infrastructure connectivity and smooth trade, cooperation in comprehensive transportation system and logistics facilities, coordination in port customs clearance, making the bridge for connectivity more smooth and effective. China will expand bilateral investment and industrial cooperation with other Asian countries to achieve complementary advantages and win-win development.