Chinese capital flowing into the Belt and Road Initiative projects surged to a record $20.1 billion in 2017, even as the country's overall outbound foreign direct investment fell. That record will likely be beaten again this year, reports the Nikkei Asian Review.
With the approval of Congress, the U.S. moves forward with a $60 billion investment fund to boost foreign development funding. According to the Nikkei Asian Review, this is an effort to counter China's expanding influence under the BRI.
India's largest infrastructure financing company, Infrastructure Leasing & Financial Services, was recently taken over by a government-backed board to address a series of loan defaults that raises questions over the country's infrastructure development.
China and Japan announced plans to sign dozens of agreements on infrastructure and other projects when Japanese prime minister Shinzo Abe visits China next month.
On September 19, The European Commission released a joint communication titled "Connecting Europe and Asia – Building blocks for an EU Strategy," outlining EU priorities for implementing sustainable, comprehensive, and rules-based connectivity to link its transport, energy, and digital networks with Asia.
The European Commission has announced "The European Way to Connectivity," a proposal aimed at boosting Europe's infrastructure links with Asia.
In preparations to double airport capacity, Thailand plans to build a 220-km high-speed railway connecting three major airports by 2023.
Chinese infrastructure funding is as likely to go outside of Beijing's six defined economic corridors as it is to go in them; indicating a possible lapse of control from the central government. This could present opportunities for its partners and competitors, writes Jonathan Hillman in the Nikkei Asian Review.
Beijing has pledged another $60 billion to African countries as it tries to address the perception of the Belt and Road being a debt trap, according to the Nikkei Asian Review.
Indonesia’s President Joko Widodo has leveraged infrastructure to promote pro-growth economic policies. However, Widodo may need to make trade-offs between growth and economic stability amid an uncertain economic outlook as the April 2019 elections approach, writes the Nikkei Asian Review.
Malaysian Prime Minister Mahathir claims that Chinese leaders have accepted his government's request to stop three China-backed infrastructure projects due to debt concerns.
The plummeting Turkish Lira may serve as a warning for emerging Asian economies who own significant BRI infrastructure debt. A drop in domestic currency can cause a crisis when time to repay debts, which are typically denominated in USD, according to the Nikkei Asian Review.
Indonesian president Joko Widodo unveiled his draft state budget for 2019 as he prepares for re-election, which presents the slowest infrastructure budget increase since he took office in 2014.
Pakistan's new prime minister Imran Khan is deciding whether the country should turn to the International Monetary Fund or to China for financial support. The new administration must resolve its shortage of foreign exchange reserves caused by a sharp increase in imports through BRI-related projects and the redemption of external debt.
In anticipation of an infrastructure spending boost, stocks have climbed for Chinese infrastructure companies.
China and Japan agreed Thursday to encourage deeper economic cooperation in the private sector and to launch a public-private committee to advance joint infrastructure development in the region as part of Beijing's Belt and Road Initiative.
Asia and the Pacific have made great strides in deveopment over the past 50 years, however much remains to be done. Issues such as poverty and vulnerability, rising inequality, climate change, growing environmental pressures, and large infrastructure deficits remain to be addressed while merging trends, such as technological advancements, urbanization, and changing demographics, present opportunities and challenges
Rather than being roundly welcomed, China's Belt and Road investment and finance decisions have become cause for concern for some receiving states, according to the Nikkei Asian Review..
Due to highly anticipated infrastructure development and manufacturing potential in North Korea, South Korean banks are rushing to hire experts on North Korea.
Mahathir's new government intended to cut the cost of the Light Rail Transit 3 project by 47%, from 31.65 billion ringgit to 16.63 billion ringgit ($4.11 billion). This also sends a worrying message to stakeholders of other costly infrastructure projects signed by Najib's government, which was blamed for "poor governance."
Thirty-one companies from Thailand and abroad have expressed interest in bidding for the right to build the country's first high-speed railway, valued at $7.07 billion. The 220km route will link three major airports and will be the first large infrastructure project to be built in the Eastern Economic Corridor.
According to an expert with the German Marshall Fund, a prolonged U.S.- China trade war will make it difficult for China to afford expensive foreign policy ventures, such as its Belt and Road Initiative.
Malaysian prime minister Mahathir Mohamad is expected to lead a government delegation to Beijing, as Malaysia figures out how to service loans taken from China to finance costly infrastructure projects.
Although operating on a smaller scale than the Asian Development Bank, the China-led Asian Infrastructure Investment Bank (AIIB) is steadily increasing its presence as a multilateral institution focused on infrastructure development financing. The AIIB set a lending and investment target of $3.5 billion for 2018, 40 percent more than last year.
The World Bank Monday urged Malaysia's new government to step up fiscal reforms amid robust economic growth to make the country more resilient to potential future shocks.The government should also restructure large-scale infrastructure projects and improve spending efficiency, it said.
AIIB president Jin Liqun announced his intent to create financial stability for the bank's 87 member countries and establish the AIIB as a multilateral development bank commensurate with the World Bank Group, Asian Development Bank, and European Bank for Reconstruction and Development.
This report highlights recommendations on how the U.S. might effectively engage Southeast Asia's infrastructure challenges to foster greater stability and financial integration in the region.
China's Belt and Road Initiative has begun attracting international investors and financial institutions through the issuance of BRI-branded corporate bonds and other BRI-related products.
The Shanghai and Shenzhen exchanges bought 450 million shares of Bangladesh's main exchange, beating India's bid. The exchanges allow Chinese investors to access funds for overseas infrastructure projects and strengthen financial cooperation for the BRI, a goal stated by both exchanges.
The head of the Asian Development Bank has warned countries against unsustainable borrowing to fund infrastructure projects, which could lead to debt traps and repayment trouble.
Japan's infrastructure export ambitions face an uncertain future following a move by Japanese trading house Itochu to pull funding for the construction of a nuclear power plant in Turkey. Itochu's departure was driven by a sharp increase in safety-related costs following the Fukushima nuclear disaster, which caused the estimated total project cost to balloon from two to five trillion yen.
On April 25, the Simon Chair's Reconnecting Asia Project hosted a conversation with Natalie Lichtenstein, Chief Counsel for the 57-country negotiations that led to the AIIB's founding and the principal drafter of the Bank's charter, to discuss her new book: A Comparative Guide to the Asian Infrastructure Investment Bank.
Philippine president Rodrigo Duterte is pushing for a second package of tax reforms under his Comprehensive Tax Reform Program in order to help fund the country’s $160 billion infrastructure drive.
Chinese officials have announced increased financial support for the country's Belt and Road Initiative.
Robust international demand, especially from China, is expected to fuel Japanese manufacturing of construction machinery, robots, and machine tools in 2018.
British prime minister Theresa May is expecting $12.8 billion in commercial deals with China. The agreements would focus mainly on the fields of finance, agriculture, science and technology, as well as President Xi Jinping's flagship Belt and Road Initiative.
Since 2009 ASEAN entities have issued $1.85 billion worth of green bonds, many of which fund infrastructure developments such as Warisan Merdeka Tower in Kuala Lumpur.
New financial policies set forth by China will encourage companies to increase their use of yuan for settling cross-border trade deals.
The magnitude of the Balkan Silk Road project poses a mixture of opportunities and policy challenges for countries engaging in or seeking to benefit from its implementation.
Malaysia announced it will spend over $1.53 billion to build new roads and bridges in an infrastructure development push that will help sustain growth in the key construction sector.
Capitalizing on its position as a financial and legal hub, Singapore wants to underpin its economic growth by involving itself in Chinese-led megaprojects under the"Belt and Road" Initiative.
It is time to expand transparent, high-standard regional lending mechanisms – tools that will actually help nations instead of saddle them with mounting debt.
Quotes and Quotas is a weekly digest of phrases and facts that help explain Asia’s infrastructure push.
The AIIB concluded its second annual meeting in Jeju Island, South Korea on June 16, yet many questions about the bank’s role in global governance remain open.
Work has commenced on the 414-kilometer long China-Laos high-speed railway near Phonesai village.
Here is a selection of work from ADBI related to four areas the Reconnecting Asia Project covers: climate change and sustainability, energy, regional integration, and infrastructure finance.
Indonesia will issue $900 million in government bonds to fund President Joko Widodo's ambitious infrastructure agenda.
Financial engineering is driven by new approaches to old problems, as the surprising success of green bonds and social or development impact bonds has shown us. Hopefully, the time of the kicker bond for infrastructure has arrived.
Pakistan has recently come to an agreement with U.S.-based company InternationalFfinance Corporation on creating a Pakistan Infrastructure Bank.