The Chinese Development Bank was established in 2016 and holds assets of $2.4 trillion. It is meant to offer medium-to-long term loans for the major social and economic development of the country.
China may not be conscious of its increasing corporate debts but it can’t put a halt on the investments in Belt & Roads Initiative. Chinese biggest foreign investment bank commits $250bn to the trade in the form loans. This committed amount is greater than the annual gross domestic products of Finland and Greece.
China Bank is the largest development financial institution of the world lead by China’s Estate Council and funded by Ministry of Finance and Central Huijin Investment and ranked as China’s biggest investment company.
At a panel with Asian Financial Forum Hong Kong Mr. Hu Huaibang, the Chairman of China Development Bank said that the Bank had spent $110bn for ancient trade route by the end of 2017.
“China is at the center of global supply chain. Many countries want to take advantage of the (Belt and Road) Initiative.”
In 2013, The President XI Jinping suggested to take trade initiatives in more than 60 countries including Africa, Asia and Europe and labeled as “Marshall Plan” as the foreign aid had been taken from America to help in rebuilding Europe after The World War II.
Chairman of the Asian Infrastructure Investment Bank Jin Liqun said: “We want to make sure the projects are good ones and they would be able to generate revenues,” and said “We are not going to do loss-making business,”.
Hu explained further that the China had an investment of $50bn in those countries which were involved in this trade initiative and had a trade volume of $3trillion. He said that China has plans to invest $150bn in the coming five years.