China Aims to Create Multilateral Financing System for Belt and Road Initiative, Says Finance Minister

Yicai

2017-05-12

(Yicai Global) May 12 -- A multilateral financing mechanism covering various funding sources should be developed by effectively pushing forward financial innovation and deepening financial cooperation to materialize One Belt, One Road projects, said China’s finance minister, Xiao Jie. Some multilateral development institutions have extensive experience in financing operations, and they can play a bigger role in the implementation of the One Belt, One Road strategy, Xiao underlined.

“Construction projects along the One Belt, One Road require a huge amount of funding, and government investment alone cannot meet the demand,” Xiao told People’s Daily in an interview.

He pointed out that China has reached consensus with multilateral institutions to increase support for relevant infrastructure and facilitate connectivity projects.

“Judging by information collected so far, many investors have enormous potential to contribute to the initiative. If governments can provide related services and improve the transparency of their policies, a large number of investors in China and in the countries along the Belt and Road will be willing to participate and fund the projects,” Xiao said.

“Economic and trade cooperation is an integral part of the One Belt, One Road strategy,” he noted, adding, “In terms of trade facilitation, the ministry of finance has focused efforts on two areas in recent years.” They are about preventing double taxation and opening the Chinese market to the Belt and Road countries through effective implementation of free trade area strategies. China’s finance ministry has so far signed tax agreements with 54 countries to avoid double taxation. It has also cut tariffs for free trade partners and the least developed nations to facilitate trade activities with them.

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