JBIC Signs MOU with China Development Bank
Enhancing Collaborations between Japanese and Chinese Corporations in Third Country Markets
October 26, 2018
The Japan Bank for International Cooperation (JBIC, Governor: Tadashi Maeda) signed today a memorandum of understanding (MOU) with the China Development Bank(CDB), taking the opportunity of the participation of Japan's Prime Minister Shinzo Abe in the Japan-China Forum on Third Country Business Cooperation in Beijing. The objective of this MOU is to promote cooperation between JBIC and CDB for projects in third country markets which Japanese and Chinese corporations participate or are involved in.
CDB is a state-owned bank focusing on development under the direct jurisdiction of the State Council of the People's Republic of China, established with the purpose of providing loans and investments for infrastructure projects and other development projects in China. However, in recent years, CDB has also been engaged in supporting overseas development projects in response to the Chinese government's policy towards sustainable growth and Chinese companies' active overseas expansion. In March 2017, JBIC signed an MOU with CDB*1, which strengthens the banks' cooperative relationship in order to support Japanese corporations' business development in China and third countries. The purpose of the new MOU is to further develop this initiative by cementing the cooperative relationship between JBIC and CDB and to financially support joint projects between Chinese and Japanese companies in third countries.
In an increasingly globalized world, where investment demand is growing especially in emerging markets, there are growing business opportunities in third countries for Japanese and Chinese corporations that can complement each strength. Also, at the Japan-China Summit Meeting in May 2018, it was confirmed that the governments of the two countries shared the common view that the cooperation of Japanese and Chinese companies on projects in third countries will not only expand in both countries' economic sectors, but also be beneficial for the third countries involved*2.
In collaborating to support projects involving both Japanese and Chinese corporations in third countries, JBIC and CDB will provide financial support based on the global standards such as openness, transparency, economic viability, debt sustainability, and compliance with laws and regulations. This initiative will thereby encourage the creation of new business opportunities that will benefit Japan and China as well as the third countries in which the projects are located.
As Japan's policy-based financial institution, JBIC will continue to financially support the overseas business expansion of Japanese companies by drawing on its various financial facilities and schemes for structuring project, and performing its risk-taking function, in collaboration with public financial institutions in other countries.