China, Europe and the Netherlands: Opportunity Is Knocking at Our Doors

Macro Economy
I
n September 2013, Chinese President Xi Jinping 
caught the world’s attention by laying out his vi-
sion for the strategic construction of a ‘Silk Road 
Economic Belt’. Over the past year, this idea has moved 
from a simple initiative to its implementation phase, 
as China’s plans for the development of the basic have 
been set up and the construction of the related infra-
structure is accelerating. In short, the construction of 
the Silk Road Economic Belt will provide a potent im-
petus for the social and economic development of the 
SCO member nations.
Characteristics of the Silk Road Economic 
Belt
As a strategic concept that reflects the trends of 
current times, construction of the Silk Road Economic 
Belt has several defining characteristics. The first is 
win-win co-operation. It is based on the principles of 
co-commerce, co-building and sharing, and is dedicat-
ed to establishing a community with shared interests, 
responsibilities and destiny. The second characteristic 
is its openness and inclusivity. China’s plans will be 
coordinated with the strategic development of involved 
nations and integrated with the various industries in 
order to balance the concerns, interests and benefits 
of all. The third characteristic is that it is a positive and 
pragmatic strategy, prioritizing the promotion of infra-
structural interconnectivity and co-operation in the ar-
eas of trade, industry, energy, finance, culture and the 
environment in order to gradually build up a pattern of 
large-scale regional co-operation. The fourth charac-
teristic is its flexibility and efficiency. Multiple co-op-
eration models will be explored by taking into account 
conditions in different nations, with no single-minded 
pursuit of institutional-type structures, with the focus 
being to maximize relevance and feasibility. The idea of 
the joint construction of a Silk Road Economic Belt fits 
the development needs of the countries involved, is in 
line with the trend of increasing co-operation between 
Asia and Europe, and is receiving an ever more positive 
response from the countries which will be influenced 
by its development.
The construction of the Silk Road Economic Belt 
provides a historic opportunity for development in 
the SCO region. SCO member states situated along 
the route of the old Silk Road have an undeniable geo-
graphical advantage when it comes to building bridges 
between the twin economic powerhouses of Europe 
and Asia. Accelerating the construction of the Silk Road 
Economic Belt will greatly promote co-operation be-
tween SCO member states in terms of interconnectiv-
ity, transport compatibility and trade and investment 
integration. This will in turn deliver tangible results to 
the populations of these nations and lay a solid founda-
tion for prosperity and stability throughout the region.
Increased co-operation within the SCO 
Interbank Consortium
The construction of the Silk Road Economic Belt 
provides a broad stage for deeper co-operation within 
the SCO Interbank Consortium. Since its inception, the 
Consortium has played an important role in promoting 
regional economic and financial integration and sup-
porting the financing of major projects. Each member 
By Hu Huaibang
022 
  Apr. 2015
Financing and Planning 
the Construction of the Silk 
Road Economic Belt
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bank has provided tens of billions of dollars in accumu-
lated loans in fields of infrastructure, industry, energy 
and livelihoods of people within the region. Promoting 
the construction of the Silk Road Economic Belt still re-
quires the investment of huge amounts of money. Take 
railways as an example. The Silk Road Economic Belt 
requires up to 10,000 km of track with an estimated 
total investment of 300–500 billion RMB. To realize 
such vast capital investment amounts, increased co-op-
eration between Consortium member banks and ever 
mounting investment and financing support from each 
will be required.
As a member of the SCO Interbank Consortium, Chi-
na Development Bank (CDB) has made major efforts to 
service the SCO region and the construction of the Silk 
Road Economic Belt. In 2014 the Bank’s total assets 
exceeded 10 trillion RMB, with a foreign currency loan 
balance of nearly USD 320 billion, including USD 44 
billion in loans within the SCO region. The CDB is the 
Chinese financial organization with the greatest num-
ber of co-operation projects – and the largest loans – 
within the entire SCO region. Not long ago, the Chinese 
government provided approval in principle for further 
reform to the CDB—thus clarifying the Bank’s posi-
tion as a development finance organization, stressing 
the importance of expanding the function and role of 
development finance, in key fields, in weak links and 
during this critical period. The Chinese government’s 
affirmation of development finance and significant 
support for the long-term development of the CDB has 
further strengthened our confidence and capacity to 
co-operate with fellow Consortium member banks and 
work together to build the Silk Road Economic Belt.
Planning and support
2015 will be the year during which development of 
the Silk Road Economic Belt  projects become a reality. 
China will continue to consult with partner countries 
towards building consensus, and forming a govern-
ment-level platform for construction that benefits 
all parties and establishes a connected development 
strategy built on the foundation of mutual benefit. The 
Interbank Consortium is the major finance and capital 
mechanism within the SCO framework, and the con-
struction of the Silk Road Economic Belt should there-
fore be seen as an opportunity for us to play an active 
and positive role.
First, we must accommodate the interests and 
requirements of all parties, and promote the idea of 
‘planning first’. The CDB is working with the National 
Development and Reform Commission and other min-
istries in the research and preparation of plans relating 
to the Economic Belt. Each member bank needs to 
strengthen communications with the relevant national 
authorities and bodies and participate actively in the 
Silk Road Economic Belt construction planning in 
their country; each needs to research into and develop 
corresponding Consortium financing plans, and thus 
design financing options appropriate to the individual 
situations of each country.
Secondly, we must enrich the Consortium project 
portfolio and facilitate the implementation of planning. 
The majority of China’s plans for the Silk Road Eco-
nomic Belt over the past few years have been formed 
and validated with the consensus of all parties in-
volved, comprising key sectors and projects. All of the 
Hu Huaibang
Chairman, China Development Bank
Apr. 2015 
  023 
WWW.BOAOREVIEW.COM
The grand idea of a Silk Road Economic Belt has 
already progressed from a simple initiative to its 
implementation phase, and as the largest investment 
and financing mechanism within the framework of 
the Shanghai Cooperation Organization, the SCO 
Interbank Consortium needs to play a positive and 
active role in this development.
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