Introduction
China has consistently maintained a stable and healthy development of foreign trade and economic and financial activities and has been one of the most active participants in international financial activities. In order to further better the development of Chinas foreign trade and capital flows, the government has set up a specialized bank, the China Export and Import Bank (EXIM Bank of China).
Overview
The EXIM Bank of China, known as the China Exim Bank for short, is a specialized bank established by the State Council in February 1994. It is a state-owned financial institution funded by the Chinese government and provides both domestic and foreign trade and economic financing services. It serves to finance foreign investment and related activities and to enhance the international competitiveness of Chinese enterprises. In addition to providing financial services, it also serving as an official agency of the Chinese government in conducting international financial activities including debt restructuring and arbitration, international marketing and risk hedging.
The bank primarily focuses its financial services on project financing, overseas investments, export credit agencies, and risk management. Its primary objective is to offer financial support to achieve the Chinese governments foreign economic development objectives and economic cooperation targets.
Project Financing
The China Exim Bank provides financing for large-scale projects with international implications. The projects supported include hydro-power, nuclear power, transport, telecommunications and water conservancy. The bank also provides partial financing for industrial projects, and offers preferential loans to underdeveloped countries.
In addition, the bank provides financing to domestic investment projects accepted by the Chinese government or recommended by the China Chamber of Commerce for Investment and Developed Anhui. These projects must comply with the regulations and principles of Chinas foreign loans and the relevant regulations of Chinas foreign exchange controls.
Export Credit Agencies
The China Export-Import Bank also helps to promote exports by providing export credit guarantees, export credit insurance and other related services. Through these services, the bank helps to support Chinese companies to export their goods and services. The bank also supports the introduction of foreign capital into China, providing overseas credit and foreign exchange services.
Risk Management
The bank provides insurance coverage against international market risks. This includes the coverage of the political, commercial, and natural risks inherent to foreign investments and international transactions.
The China Exim Bank also provides investment in bonds, share premium investments and foreign exchange investments, providing protection against foreign exchange rate moves and currency devaluations.
Conclusion
In conclusion, the China Export-Import Bank is an important provider of project financing and export services as well as protection from foreign investment risks. It serves to promote the development of Chinas foreign trade and economic activities, and provides invaluable services for foreign investment and economic cooperation objectives. It is one of the most important institutions supporting the growth of Chinas foreign trade activities.
