Selwyn Times: June 20, 2017

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Tuesday June 20 2017
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SELWYN TIMES
Belt and Road Forum
for Future Cooperation
The Belt and Road Forum for International Cooperation
(BRF) which was concluded in May 14-15 outlined the
roadmap for the success of the Belt and Road Initiative.
Twenty-nine foreign heads of state and government
attended the forum.
Other delegates included officials, entrepreneurs, financiers
and media from over 130 countries and regions, which are
home to more than two thirds of the world’s population
and their combined gross domestic product accounts for
90 percent of the world’s total. The second BRF will be held
in China in 2019.
The forum yielded a list of outcomes, which included 76
consensuses comprising more than 270 detailed results in
five key areas, namely policy, infrastructure, trade, financial
and people-to-people connectivity.
It sent a positive signal for all parties to work together
to build a community of shared future, which would be
extremely important for China and the world.
Large Investment Demand
A joint communiqué was issued at the forum, vowing
to work on a long-term, stable and sustainable financing
system, as well as to enhance financial infrastructure
connectivity, by exploring new finance models, platforms
and services. The projects will require innovative financing
mechanisms -- a mix of public and concessional finance
and commercial capital.
Stronger Financial Connectivity
Meanwhile, besides the actual fund injection, future
cooperation would gradually extend from the building of
hardware such as roads and ports to softer sectors such as
management and services. Funding services and financial
support would be one of the service and institutional
improvements that would take more shares in the next
round of Belt and Road construction.
Nine Chinese-funded banks have set up 62 direct branches
and representative offices in 26 countries along the Belt
and Road as of the end of 2016, offering tailored services to
local clients. At the same time, 54 commercial banks from
20 countries and regions along the Belt and Road have
established branches, financial companies or representative
offices in China, seeking opportunities with the initiative.
According to the Guiding Principles on Financing the
Development of the Belt and Road, governments along
the Belt and Road should coordinate to provide favorable
policy environments for financing. The guiding principles
also suggest letting the private sector play a larger role in
the initiative, and encouraging financial innovation while
enhancing cooperation on financial regulation.
Consolidated Consensus
China aims to work with other countries to build the
Belt and Road into an open platform of cooperation and
a solution for challenges, including a lack of new growth
drivers, development imbalance and terrorism. President
Xi Jinping said China hoped to create a big family of
harmonious co-existence, and the pursuit of the Belt and
Road will not resort to outdated geopolitical manoeuvring.
To ease concerns, Xi said China has no intention of
interfering in internal affairs of other countries, exporting
its social system and model of development, or imposing
its will on others.
accounting for 8.5 percent of total overseas investment
made by Chinese enterprises.
The Chinese President in his speech also mentioned China
will expand China-Europe railway cargo services and
establish new mechanisms, including a liaison office for
the forum’s follow-up activities and a research centre. With
coordinated and sustained collaboration among all parties
concerned, the forum will mark the start of the Belt and
Road 2.0.
Opportunities for New Zealand
Attending the forum showed that New Zealand wanted to
be part of the discussion. New Zealand and China signed a
ground-breaking memorandum of understanding on Belt
and Road Initiative in March. The longer-term target is to
work with China to develop a plan on how New Zealand
can participate and contribute to the initiative.
One of the eye-catching outcomes of the forum was China’s
hefty financial support to advance the initiative, including
an additional 100 billion yuan (14.5 billion U.S. dollars) to
the Silk Road Fund.
China will also encourage its financial institutions to
conduct overseas yuan fund businesses with an estimated
amount of about 300 billion yuan. China’s decision to scale
up financial support for the Belt and Road, after billions
of U.S. dollars of investment over the past three years,
underscored the country’s resolution to push forward the
initiative.
The Belt and Road will be open to all. All countries, from
Asia, Europe, Africa, Oceania or the Americas, can be
partners of the initiative. So far, the initiative has won
support from more than 100 countries and international
organizations, of which over 40 have signed cooperation
agreements.
Landmark Significance
The Belt and Road initiative has gone beyond vision and
become a reality, delivering tangible benefits to countries
along the routes. From Mongolia to Malaysia, Thailand to
Pakistan and Laos to Uzbekistan, many projects, including
high-speed railways, bridges, ports, industrial parks, oil
pipelines and power grids, are being built. Since 2013,
Chinese businesses have invested more than 60 billion
U.S. dollars in countries along the Belt and Road. The
investment totalled 14.5 billion dollars in 2016 alone,
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Coming back from the Belt and Road Forum for
International Cooperation, Paul Goldsmith who is New
Zealand’s Minister of Science and Innovation, Minister of
Tertiary Education, Skills and Employment, said the forum
“was a very impressive and significant event.” As the head
of the New Zealand delegation, Goldsmith said during an
interview that he sees the Belt and Road Initiative as the
re-management, re-invention and re-invigoration of the
ancient trade routes. He said “The Silk Road is a starting
point and an expression of support for the open market,
reducing trade barriers, increasing connectivity across the
world. He said that as a small trading nation, New Zealand
“obviously has a keen interest on all those things” and
New Zealand is well aware of the opportunities that China
provide especially for bilateral trade.
Being Minister of Science and Innovation, Mr. Goldsmith
is particularly interested in the themes of the Belt and
Road Initiative on innovation, which is the particular
field that New Zealand is focused on. New Zealand is
also looking into how the two countries can continue to
work together on innovation in many fields. New Zealand
universities have long time relationships with Chinese
leading universities. Mr. Goldsmith said that there’s a good
prospect for New Zealand and China to further develop
science connections under the Belt and Road Initiative.