James Chang Fi­nan­cial Ser­vice Leader from PWC China Con­sult­ing:

The Belt and Road Ini­tia­tive should fo­cus on lean, green and clean fi­nan­cial co­op­er­a­tion and eco­nomic de­vel­op­ment.

China's Foreign Trade (English) - - Special Report -

Ac­cord­ing to James Chang, host of the round-ta­ble meet­ing and part­ner of Price­wa­ter­house­coop­ers (PWC) who man­ages the China fi­nan­cial ser­vices con­sult­ing prac­tice, the Belt and Road Ini­tia­tive is a plat­form for in­ter­na­tional co­op­er­a­tion, and its vi­sion of “pol­icy com­mu­ni­ca­tion, in­fra­struc­ture con­nec­tiv­ity, trade links, cap­i­tal flow, and un­der­stand­ing among peo­ples” is aimed at join­ing the world more closely: in­fra­struc­ture in­vest­ment can help re­al­ize more in­clu­sive growth, at­tract more di­rect for­eign in­vest­ment, cre­ate more job op­por­tu­ni­ties, and es­tab­lish win-win re­la­tions. “How­ever, as far as the mar­ket is con­cerned, the Belt and Road Ini­tia­tive faces two ma­jor chal­lenges, namely the risks of project im­ple­men­ta­tion and cap­i­tal abuse, as well as wors­en­ing debt prob­lems. It is nec­es­sary to adopt an ef­fec­tive gov­er­nance struc­ture and di­ver­si­fied fi­nanc­ing tools to deal with these risks,” said James Chang.

Its con­tri­bu­tion to sus­tain­able global eco­nomic growth is be­yond any doubt. Al­though in­dus­tri­al­iza­tion has re­sulted in great eco­nomic gaps ex­ist­ing be­tween de­vel­oped and de­vel­op­ing coun­tries, China’s ex­pe­ri­ence in bring- ing a pop­u­la­tion of ap­prox­i­mately 500 mil­lion out of ex­treme poverty over the course of 30 years will cer­tainly pro­vide in­valu­able lessons for coun­tries and re­gions along the Belt and Road. “At the same time, we should al­ways learn lessons from those mis­takes made in his­tory, and avoid dam­age to or ad­verse ef­fects on the en­vi­ron­ment and so­ci­ety. There­fore, it is cru­cial to es­tab­lish an ef­fec­tive mon­i­tor­ing and su­per­vi­sion sys­tem and an open and trans­par­ent in­for­ma­tion dis­clo­sure sys­tem,” he said. “Just as the guide­lines put for­ward by the Asian In­fra­struc­ture In­vest­ment Bank (AIIB) re­gard­ing “stay­ing lean, green and clean”, the Belt and Road ini­tia­tive should fo­cus on lean, green and clean fi­nan­cial co­op­er­a­tion and eco­nomic de­vel­op­ment.”

Re­gard­ing the news of China’s fi­nan­cial lib­er­al­iza­tion, af­ter the an­nounce­ment made by Chi­nese pres­i­dent Xi Jin­ping that China would fully lib­er­al­ize its do­mes­tic fi­nan­cial mar­ket, James Chang stated that the Belt and Road Ini­tia­tive not only brings op­por­tu­ni­ties for Chi­nese fi­nan­cial in­sti­tu­tions to ex­pand out­wards, but also pro­vides a great fi­nan­cial mar­ket for over­seas play­ers.

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