Post on 02-Feb-2016
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World Resources Institute World Resources Institute
Emerging Actors in Development Finance: Where Does China Stand?
Xiaomei Tan, Ph.D.Senior AssociateInternational Financial Flow and the Environment ProjectWorld Resources Institute
October 20th, 2010
Structure
Overview of China’s overseas direct investment (ODI); Major players in China’s ODI; Current policy framework relevant to environmental and
social standards; What the international society can do?
Trend of China’s overseas direct investment (ODI)
In 2009:China’s annual ODI accounted for 5.1% of global annual ODI;Ranked first among developing countries; Ranked fifth globally
Source: China Statistics Yearbook, 2006; 2007;2008; 2009 China Foreign Investment Annual Report
Which sectors does China’s ODI focus on?
Source: China Statistics Yearbook, 2006; 2007;2008
What regions does China’s ODI focus on?
Source: China Statistics Yearbook, 2006; 2007;2008
China’s ODI in Africa
Major players in China’s ODI
MOC: Ministry of Commerce; SASAC: State-owned Asset Supervision and Administration Commission;NDRC: National Development and Reform Commission;SAFE: State Administration of Foreign Exchange; MOF: Ministry of Finance; CBRC: China Banking Regulatory Commission;
Procedure for certificates of approval
Source: GEI, Environmental Policies on China’s Investment Overseas
Top three banks financing China’s ODI
Type Business scope Overseas Lending, 2009
Major project, 2009
EXIM Bank of China
Policy bank Mechanical and electric equipments, new and high tech products
174.2 billion $1680 million Ecuador Coca Codo Sinclair Dam
China Development Bank
Policy bank Infrastructure and energy
40.4 billion $35 million Malawi Cotton Project
Bank of China
Commercial bank
Construction contract and export processing
80.7 billion $1300million Angola oil well purchase
Source: 2009 EXIM Annual Report; 2009 China Development Bank Annual Report; 2009 Bank of China Annual Report
Environmental protection policy related to financing
Year Name of policy/regulations Agency that drafted the regulation
1995 Regulations on Implementing Financing Policy to Promote Environmental Protection
People’s Bank of China (PBC)
2007 Provisions on Implementation of Environmental Regulations to Prevent Credit Risks
Ministry of Environmental Protection (MEP); PBC; China Banking Regulatory Commission (CBRC)
2007 Provisions on Strengthening the Social Responsibilities of Banking Institutes
CBRC
2007 Provisions on Financing Energy Efficiency Projects
CBRC
2008 Cooperation Agreement with IFC on Green Financing
MEP
2009 Guidelines on Corporate Social Responsibility of Banking Institutions
China Banking Industry Association
Source: China Banking Regulatory Commission (CBRC) website
Largest state-owned enterprises ranked by ODI
Revenue, 2009 Energy Bases
China National Petroleum Corp. (CNPC)
$ 187.43 billion • Sudan (16.19 Mt with pipe)•Kazakhstan (5 Mt with piple)•Venezuela (3 Mt)•Indonesia
China National Offshore Oil Corp. (CNOOC)
$32.25 billion • Indonesia•Australia•Nigeria
SinoHydro $15.72 billion • South America•Africa•South-east Asia
Source: 2009 Petroleum China Annual Report; 2009 CNOOC annual report ; SinoHydro Corporation Website
Environmental protection policy related to ODIs
Year Name of policy/regulations
Agency that drafted the regulation
2005 Approval Rules for Overseas Investment
Ministry of Commerce(MOC)
2007 Guidelines on Sustainable Management of Overseas Forests for Chinese Enterprises
Bureau of Forestry (BOF) and MOC
Currently being built
Guidelines on Environmental Actions of Chinese Overseas Enterprises
Ministry of Environmental Protection (MEP), MOC and State-owned Asset Supervision and Administration Commission (SASAC)
Source: Ministry of Commerce (MOC) website
What the international society can do?
Provide analytical excellence and technical expertise; Offer best practice examples; Direct engagement with key decision-makers; Convene discussions with NGOs, the private sectors
and policymakers on China’s ODI.