Solve China’s ‘overcapacity problem’ by helping developing nations go green, central bank adviser urges
- ‘Think of it as a Chinese version of the Marshall Plan in the green economy era,’ but beware of backlash, says member of Monetary Policy Committee
- The economic restoration plan for Europe that Washington passed after World War II is seen as a template that China could learn from today
To help developing countries expedite their green transition while simultaneously digesting China’s industrial overcapacity and enhancing the internationalisation of its financial sector, Beijing should take a page from the US’ old foreign-aid initiative known as the Marshall Plan, according to a central bank adviser.
Huang Yiping, a member of the Monetary Policy Committee of the People’s Bank of China, said on Monday that China could lend to emerging economies that are in need of a transition to clean energy but lack money and technology.
“Since every country needs to make the green transition, and developing countries find it particularly difficult, if we share the burden, we cannot only help them achieve the goal, but also elevate China’s global leadership and influence in green development,” Huang said at the Global Finance Forum organised by Tsinghua University in the city of Hangzhou.
“There has been obvious resistance in the European and US markets, but at the same time we actually have huge potential in developing countries,” Huang said.
In recent months, a number of Western countries have escalated their responses to a surfeit of Chinese imports in the new-energy sector, claiming that their own markets have become distorted and their manufacturing disrupted.