After listening to the speeches of other guests, I will share my understanding of the Belt and Road Initiative (BRI).
Firstly, the BRI reflects China's thinking on the basic laws of economic globalization and China's solution to the challenges of globalization. In recent years, many new challenges have emerged in the process of globalization, such as income inequality and anti-globalization movements in some countries. The international community needs to establish a broader and deeper cooperation platform to make globalization more inclusive and allow more people to participate in globalization and share its benefits. The BRI, proposed by President Xi Jinping, is based on the concept of building a community with a shared future for mankind. Essentially, it reflects China's concept of global governance, which is extensive consultation, joint contribution, and shared benefits., so it’s an open and inclusive platform. Any country that agrees with the principles of mutual benefit and win-win cooperation in promoting globalization is in line with the spirit of the BRI, and we welcome countries at all stages of development to participate in the BRI’s five key priority areas of connectivity.
Secondly, the BRI draws on the development experience of China and other countries and forms a platform for international development and cooperation. The experience and achievements of China's reform and opening-up over the past 40 years show that the pioneering role of infrastructure construction should be given full play. Infrastructure is the material foundation for the development of a market economy.
When I accompanied World Bank President Jim Yong Kim to visit Guizhou Province last year, I found that farmers in a local "Taobao village" had partnered with Alibaba to open online stores and sell local specialty directly to all regions in the country and even abroad, resulting in a significant increase in their income. They were able to shake off poverty and become rich. This business model of inclusive development works because it is backed by strong infrastructure and a developed logistics system. At present, one of the bottlenecks facing the world economy is a dire lack of infrastructure. China's development experience and the BRI can help address the infrastructure bottleneck facing the world economy today.
In promoting the development of the initiative, the Ministry of Finance of China has made efforts in the following three aspects:
Firstly, it has forged a broad consensus in the international community and developed a policy framework for the high-quality development of infrastructure financing. The Ministry of Finance of China and finance ministries of 27 countries have jointly endorsed the Guiding Principles on Financing the Development of the Belt and Road, and has signed an MOU on Strengthening Cooperation on the Belt and Road Initiative with six major multilateral development banks. Through these policy frameworks, we encourage all parties to synthesize compliance with international rules, the actual needs of developing countries and the laws of the market, and to implement the principles of high quality, high standards, affordability and sustainability in financing practices.
Secondly, we are committed to ensure the openness of BRI cooperation by supporting long-term infrastructure financing through multiple channels. Through bilateral and multilateral cooperation platforms, we encourage multilateral development agencies to engage in financing with countries participating in the BRI, welcome third-party and multi-party cooperation, and mobilize long-term and private sector capital to achieve diversified financing. We welcome alignment of the BRI with other development initiatives, such as the Eurasian Economic Union and the EU's Strategy on Connecting Europe and Asia.
Thirdly, we have improved project risk management to ensure the BRI’s long-term and steady development. With investment comes risk, and the key is controlling risks within reasonable limit. On the one hand, China is establishing and improving the frameworks for debt sustainability analysis and debt risk management, and raising the risk management level of Chinese financing institutions. On the other hand, debtor countries should also strengthen their own debt management capacity. We encourage innovative financing means and promote equity investment and PPP project financing, rather than the simple option of loans. China will work with other countries to promote the high-quality development of the Belt and Road Initiative.