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Silk Road Fund – China’s financial arm in Asia.

Silk Road Fund – China’s financial arm in Asia. published on

While politicians, experts and businessmen commenting on the China’s new investment initiatives in Asia focus mainly on the developments connected to the establishment and operations of the Asian Infrastructure Investment Bank, Chinese authorities silently and slowly but steadily build China’s position in Asia using other, fully dependent institutions,such as old policy banks Exim Bank, China Development Bank and and new Silk Road Fund that is actually offspring of the two former.
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Where Russia retreats China steps in

Where Russia retreats China steps in published on

When in December last year President of Kyrgyzstan Almazbek Atambayev announced intention to cancel the deal with Russia to build two hydropower plants Kambarata-1 and Kambarata-2 and the upper Naryn cascade he also said that government would find another investor to complete the project. Experts without hesitation pointed out at China as a viable option and it looks like they were not mistaken. This week deputy Prime Minister Oleg Pankratov met with the representatives of China’s State Power Investment Corporation to discuss the construction of cascade in Kazarman and four hydropower stations: in Alabuga, Toguz-Toro and two in Kara-bulun with total capacity 1160MW. Chinese company expressed interest in projects and hope that all necessary documents will be produced soon.

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Janus Faces of Chinese Investments

Janus Faces of Chinese Investments published on

Last year was the next in row marked by rapidly growing Chinese investments in European Union member countries. Mercator Institute for China Studies (Merics) and Rhodium Group in the joint report, published in February, estimate that Chinese investments in 2015 reached 20 bln EUR. It’s 20% year-on-year growth. Beginning of this year has brought new wave of planned acquisitions topped by valued at 43 bln usd take over of Swiss Syngenta by the state-owned Chem-China. Chinese officials announced that this was just the beginning of the coming overseas buying spree. Recent acquisitions and bids made by Anbang confirm those promises.

Analysts expect that inclusion of One Belt One Road initiative and Chinese outbound investments in the new Five-Year Plan will trigger yet bigger wave of Chinese capital flows, both private and state owned, seeking investment opportunities abroad. Chinese official announced, that total amount of outbound investments in the next 5 years will reach 1 trln usd. They also declare, that Chinese companies will increase their activities in Europe and China will participate in the implementation of the Juncker plan.

European Union faces challenges of proper reception of the coming inflows of Chinese investments, which can bring enormous benefits but are also accompanied by significant threats and risks for EU member countries. Merics and Rhodium Group made an attempt to analyse the opportunities and threats in their report published in June last year (including data from period 2000-2014) and in already mentioned February’s update (data from 2015)

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Janusowe oblicza chińskich inwestycji

Janusowe oblicza chińskich inwestycji published on

W ubiegłym roku, kolejnym z rzędu, zanotowano dynamiczny wzrost chińskich inwestycji w państwach członkowskich Unii Europejskiej. W opublikowanym w lutym wspólnym raporcie Mercator Institute for China Studies i Rhodium Group łączną wartość chińskich OFDI w UE za 2015 r. oszacowano na 20 mld euro, o 44 proc. więcej niż w roku poprzedzającym. Mocnym akcentem w tym roku było natomiast ogłoszone w lutym, planowane przejęcie szwajcarskiego koncernu Syngenta przez chińską państwową firmą ChemChina za rekordową kwotę 43 mld usd. Chińscy dygnitarze zapowiadają, że to dopiero początek.

Tradycyjnie zwoływana na marzec „podwójna sesja” – Ludowej Politycznej Konferencji Konsultatywnej oraz Ogólnochińskiego Zgromadzenia Przedstawicieli Ludowych (OZPL) były potrzebne do formalnego zatwierdzenia nowego Plan Pięcioletniego a wraz z nim program zagranicznej ekspansji gospodarczej w ramach hołubionej przez Pekin inicjatywy Nowego Jedwabnego Szlaku. W najbliższych latach poskutkuje to prawdopodobnie dynamicznym wzrostem chińskich inwestycji zagranicznych. Dygnitarze partyjni i państwowi deklarują, że w ciągu najbliższych pięciu lat ich łączna wartość osiągnie 1 bln usd. Zapowiadają też większą aktywność w Europie, w ramach planu Junckera.

Unia Europejska stoi przed ogromnym wyzwaniem właściwej recepcji fali chińskich inwestycji, maksymalnego wykorzystania możliwości oraz zniwelowania poważnych zagrożeń, które są kompleksowo przedstawione we wspomnianym lutowym raporcie, oraz w opublikowanym przez tych samych autorów (Thilo Hanemann i Mikko Huotari) w połowie ubiegłego roku obszerniejszym opracowaniu, które obejmuje lata 2000-2014.

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China, Russia and Nazarbaev

China, Russia and Nazarbaev published on

Xi Jinping’s visit to Kazakhstan contributed to concluding a set of agreements on Chinese investments and cooperation projects, of which the most significant is the deal on the CNPC’s participation in Kashagan. Chinese buy inroads in Kazakhstan and approach Kazakh authorities in multiple projects in energy sector. The development of this cooperation is closely watched by Russia, which is very cautious about China’s growing presence in Central Asia. Nazarbaev apparently does not want to put all eggs in one basket and become overly dependent on the raising Chinese power. He maintains cooperation with Russia in varied areas and lifts the cooperation to new levels. Yesterday Foreign Minister of Russia Sergey Lavrov and Minister of Foreign Affairs of Kazakhstan Erlan Idrisov signed the protocol on amendments to the Treaty of Good-Neighbourliness and Alliance of Russia and Kazakhstan in the 21st century.The document is 95 percent ready and is scheduled to be signed in the framework of the 10th Forum of Interregional Cooperation in Yekaterinburg in November. Recently officials from both countries on numerous occasions praised very good relations and strong cooperation between both countries. Nazarbaev praised relations between Russia and Kazakhstan and work of ministries of foreign affairs and embassies. He supported Russian’s approach to the solution of the conflict in Syria. Idrisov proposed the cooperation ine the field of uranium enrichment. Lavrov announced that Medvedev will visit Kazakhstan and expressed his wish to see the countries of Central Asia experiencing undisturbed, stable development and said that Russia and Kazakhstan will cooperate to maintain peace and security in the region.
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