Building China's framework for overseas investment and financing cooperation

In recent years, China's overseas investment and construction projects have been developing rapidly. In the meantime, financing demand in developing and emerging economies for projects such as infrastructural and industrial development has soared. This paper assesses the status quo of China's cooperation in overseas investment and financing, recommends that China should promote investment and financing cooperation under the leading principles of market-orientated operation and primary role of enterprises, and clarify the due positions of market, government, and international institutions. This paper presents the following policy recommendations: (1) Promoting the development financing; (2) Further improving China's export credit mechanism, to provide investment and financing support for Chinese enterprises in overseas ventures; (3) Improving the network of Chinese financial institutions and the coverage of financial services; (4) Encouraging host countries, multilateral development banks, capital markets of developed economies, and international financial centers to perform due functions in overseas investment and financing cooperation; and (5) Appropriately using a variety of investment and financing methods, including equity investment.