China Eximbank: NIB supports technology transfer

China is NIB’s largest market outside the membership area. For more than two decades, China Eximbank has been NIB’s No. 1 onlending partner in this country.

By summer 2007, the number of cooperation projects between Eximbank and NIB had reached over 120, with the overall onlending volume totalling about 500 million US dollars. The Bulletin invited Mr Zhao Xiaoyu, Vice President of China Eximbank, to discuss the latest developments in the cooperation between the two financial institutions.

Mr Zhao, how do you assess our cooperation and what do you see as NIB’s most important contribution to China’s advancement?

I think the cooperation between China Eximbank and NIB has been very successful and we appreciate NIB’s support to China over the past years. Close cooperation with the Nordic countries helps China improve the environment, optimise its economic structure and promote social progress. Access to the resources provided by international financial institutions plays an important role in China’s reform and opening-up policy. NIB’s loans to China have helped to solve the problem of capital shortage faced by China in its economic development. Through technology transfer and staff training programmes, these loans have catalysed development in many areas of the economy.

The world economy today is integrated into an organic whole. Like all emerging markets in the world, China has maintained a sound development momentum. However, China is also faced with severe challenges. In order to adapt to the new situation, it is necessary for China to participate in international economic and technological cooperation in wider areas and at a higher level. We are aware that investors all over the world are taking a great interest in the dynamic, open and massive Chinese market, regarding China as a top priority in their global strategies. Hence active bilateral cooperation is key for development and mutual benefits, and the creation of a win-win situation for all.

In which areas is the cooperation most fruitful?

The projects financed with NIB’s loans have played a positive role in promoting China’s economic development, technological upgrading and environmental improvements. Among all the projects supported by NIB, sound economic returns and social benefits have been achieved especially in the fields of public health, environmental protection, energy, and IT infrastructure. These projects have promoted the sustainable development of the local economy, improved local people’s living standards as well as boosted employment in certain areas. What’s more, these projects have helped to narrow the technological gap between China and the developed countries.

Could you give some examples?

One of the best examples of this cooperation is the Tianjin TEDA hospital project: advanced medical equipment has greatly improved the capacity of this local hospital. Other successful examples are the Tianjin Tanggu geothermal project, Guangxi energy telemetring, the Wuhan sewage discharge project, and the Guangxi radio communication project. All these projects have played a positive role in promoting economic and social development as well as in improving the environment in the areas where the projects have been implemented.

What is your vision of how this cooperation shall develop in the future? The success of the past decade makes us feel confident of closer cooperation in the fields of energy, public health, environmental protection, electricity generation, water supply and transportation. I’d also like to see concrete results in co-financing in the future. We could also explore the possibility of cofinancing in a third country.

What are the focal points in China Eximbank’s future strategy?

Since its founding in 1994, China Eximbank has made its due contribution to promoting Chinese export and enhancing international economic and trade cooperation. In my opinion, China has currently entered a crucial stage in its economic development with the international economic environment undergoing great changes. In future, China Eximbank shall continue supporting Chinese intellectual property rights, as well as the overseas investments of Chinese enterprises. Moreover, Eximbank shall speed up its efforts in supporting the import of high-tech products and strategic resources. Being a policy-based financial institution, we aim to make our due contribution to Sinoforeign trade and economic cooperation and to the world’s peace and development.