Speaking at the Beijing forum, Zhou Xiaochuan, governor of the Chinese central bank, has pledged (link in Chinese) to help domestic banks fund more OBOR projects in the years to come. He added that China is also seeking financial cooperation with other OBOR nations, as its own resources are limited. China is also hoping that other countries and funds will pitch in. (qz, 2017) Opportunities for investment ➢ Transport Infrastructure ➢ General infrastructure & construction management ➢ Energy ➢ Telecommunications
7 ➢ Mining & resources ➢ Electricity generation and distribution What’s the Asian Infrastructure Investment Bank? A multilateral development bank to promote interconnectivity and economic integration in Asia and cooperate with existing multilateral development banks. Milestones • Oct 2013 – Chinese President XI Jinping and Premier LI Keqiang announced the AIIB initiative during their respective visits to Southeast Asia. • 24 Oct 2014 – 22 Asian countries signed the Memorandums of Understanding (MOU) to establish the AIIB. • Nov 2014 – 1st Chief Negotiators' Meeting (CNM) was held in Kunming, China • January to March 2015 – Articles of Association (AoA) of the AIIB were discussed during the 2nd, 3rd and 4th CNM. • May 22, 2015 – the final text of the AoA was adopted at the 5th CNM. • As at 27 Oct 2015 – 54 out of 57 Prospective Founding Members signed the AoA of the AIIB WTO & Trade Policies, IGTC Mumbai 2016-18. Pakistan’s Role in OBOR The China- Pakistan Economic Corridor (CPEC), which is the flagship project of China’s ‘One Belt, One Road’ (OBOR) initiative The Chinese investmen t in the project has increased from 46 billion dollars to 56 billion dollars Pakistan is raising a security force of 15,000, (roughly two divisions) for protection of Chinese personnel and CPEC installations from Gwadar to Kunjerab Pass. The special economic zones to be set up along the corridor will be only for Chinese companies, not for Pakistani WTO & Trade Policies, IGTC Mumbai 2016-18. Chinese power companies to be set up will charge much more than the domestic producers In the process, it is believed that Beijing is preparing to try and enter into the India- Pakistan dispute over Kashmir, breaking its own principles China is building the corridor through Pakistan occupied Kashmir which is a disputed territory claimed by India The end scenario looks like China will have full control of Gwadar port turning it into a base for the Chinese navy and the corridor will be used for strategic exports and imports for China WTO & Trade Policies, IGTC Mumbai 2016-18.