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‘Belt and Road’ report advises caution in financing

| 2016-08-01 | Hits:
(Chinese Social Sciences Today)

China should balance economic aid, mutual benefit and national interest when entering into investment and financing partnerships under the framework of the “Belt and Road” initiative, according to a blue book released on July 15. According to the Blue Book of the “Belt and Road,” compiled by the Institute of Russian, Eastern European and Central Asian Studies at the Chinese Academy of Social Sciences, China should draw clear boundaries separating policy banks, developmental banks and commercial banks. Financial cooperation between commercial and financial institutions should be based on the global strategy of world business and finance. The report advises the government to avoid providing credit guarantees for financial partnerships, which are fundamentally private business activities. It recommends that commercial and financial institutions emphasize social responsibility by giving feedback to authorities about problems to improve future mechanisms.