Cash crunch on China’s new Silk Road
Central bank official appeals to international lenders to help fund ‘Belt and Road Initiative’
China is urgently seeking support from international lenders to close a yawning financing gap for projects under its “Belt and Road Initiative”, a top official said.
The remarks from Yi Gang, vice-governor of the People’s Bank of China, come just days ahead of the Belt and Road Forum for International Cooperation on Sunday and Monday. Leaders from 29 countries and regions will gather in Beijing to learn more about the blueprint for China’s trade scheme.
Infrastructure and other key projects in belt and road countries had “strong demand for financing”, and support from the global market was “desperately needed”, Yi said in an interview with People’s Daily yesterday.
The calls, among the first straightforward cries for financial help from top officials, highlighted China’s dilemma in pursuing a bigger influence in the world amid a domestic economic slowdown, swelling debts and huge capital outflows.
While the plan is designed to speed development in Asia, Europe and Africa, the Asian Development Bank says there is a US$26 trillion funding gap in the infrastructure projects that will be required in Asia alone by 2030.