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THIS WEEK'S SILK ROAD HEADLINES
[Exclusive: China's 'Big Four' Banks Raise Billions for Belt and Road Deals-Sources]. China calls financial institutions to fundraise (estimated target: 元 300 billion / $ 45 billion) 'to help connect China with old and new trading partners under an initiative modelled on the Silk Road'. These financial institutions must prioritize to raise funds specifically in Yuan. This path is beneficial for China's economic position on the global market. The article reasons that ’'raising Yuan for overseas investment would also increase the currency's use in global trade and further its internationalisation, thereby reducing exchange-rate risk and preserving China's foreign reserves.´
[China Exposure' Will Have Significant Impact on Global Business]. This Conference Board report suggests that international business should observe the exposure of China's economy on the global market. The report heeds a ‘two-pronged approach’ for CEOs to assess the exposure for their strategy. First, it urges to dedicate resources to understand China's economy and its position on the global market. Mainly, CEOs should focus on how 'the channels through which domestic events in China can spread abroad and impact business operations.' Secondly, China's project abroad should be monitored and scrutinized. The focus should be on whether projects are going to materialize and which countries are going to be prioritized. Especially the paragraph called ‘Looking Ahead: Planning for China Exposure’ is worth reading.
The article [China focuses investment on Belt and Road countries] focuses on the countries outside Asia where China is investing. Mainly, it investigates the role of the United Kingdom in this respect: ‘the UK is proactively positioning itself as an important part of the Belt and Road map. Because Belt and Road strategy development needs both real economy and financial collaboration, the UK’s strength in financial services gives it a unique advantage.’
H. Cikmazkara
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To Increase awareness of and facilitate the debate on China's Belt and Road Initiative, The Clingendael Institute publishes Silk Road Headlines, a weekly update on relevant news articles from open sources.
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