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Chinese Overseas Investment & its
Environmental and Social Impacts
April 4, 2015
Yale University ∙ Kroon Hall ∙ 195 Prospect Street, New Haven, CT
WELCOME
Since 2005 China has invested nearly $900 billion
overseas, the majority of it is in the developing
world. The recent years have witnessed a shift
from developing to developed regions including
North America and Europe. These financial
flows have far-reaching impacts, including legal,
political, economic, environmental, and social
implications. The Yale Symposium on Chinese
Overseas Investment and its Environmental
and Social Impacts explores the relationship
between China’s overseas investment and the
impacts - both negative and positive - on natural
resources, particularly in the forestry, minerals,
water, and energy sectors. By convening key
actors from academia, public and private sectors,
we aim to facilitate knowledge sharing that
can steer Chinese overseas investment toward
stronger environmental and social governance.
For more information, please visit:
http://china-symposium.yale.edu/
SCHEDULE
AT-A-GLANCE
8:30 am Registration and Breakfast 3rd Floor, Kroon Hall
9:00 am Welcome Burke Auditorium
Dean Peter Crane, Yale School of Forestry & Environmental Studies (Yale F&ES)
Rodney Irwin, World Business Council for Sustainable Development
9:20 am Overview: Chinese Overseas Investment -- Trend and Impacts Burke Auditorium
Moderator: Deborah S. Davis, Professor, Sociology, Yale University
Xiaoyang Tang, Associate Professor, International Relations, Tsinghua University
Ambassador David H. Shinn, Adjunct Professor, George Washington University
Tao Hu, China Program Director, World Wide Fund for Nature U.S. (WWF U.S.)
10:30 am
Panel I: Business Perspective on Environmental and Social Impacts of
Chinese Overseas Investment
Burke Auditorium
Moderator: Marian Chertow, Associate Professor, Yale F&ES
Weijun Xie, General Manager of Resource Development, China Minmetals Corporation
Katie Schindall, Consultant Program Manager, Sustainability at EMC
Rebecca Ray, Pre-Doctoral Fellow, Global Economic Governance Initiative, Boston University
11:50 am Panel II: Chinese Regulatory Governance on its Overseas Investment Burke Auditorium
Moderator: Daniel C. Esty, Professor, Yale F&ES and Yale Law School (YLS)
Larry Jiang, Principal Environmental Specialist, International Finance Corporation (IFC)
Denise Leung, Associate, World Resource Institute
Jingjing Zhang, Environmental Public Interest Lawyer, Yale World Fellow
1:00 pm Lunch 3rd Floor, Kroon Hall
2:00 pm Panel III: Chinese Funding in Multilateral Development Institutions Burke Auditorium
Moderator: Bradford S. Gentry, Professor, Yale F&ES, Yale School of Management (SOM)
Zhihong Zhang, Senior Program Coordinator, Climate Investment Funds, World Bank
Graham Webster, Research Scholar in Law and Senior Fellow, China Center, YLS
Tao Hu, Director, China Program, WWF U.S.
SCHEDULE
1
3:20 pm Case Study Sessions
Session A: Canada: China’s Overseas Investment in Energy Infrastructure Kroon 321
Wenran Jiang, Director, Canada-China Energy and Environment Forum
Session B: Africa: Wanbao Farm in Mozambique: Land grab or Development? Sage 24
Xiaoyang Tang, Associate Professor, International Relations, Tsinghua University
Session C: Latin America: Brazil-China Soybean Trade and Rainforest Conversation Kroon G01
Charles Tang, Chairman, Brazil-China Chamber of Industry & Commerce
Session D: Asia: Hydro Development in the Amur-Heilong River Basin Kroon 319
Eugene Simonov, Coordinator, Rivers without Boundaries International Coalition
5:00 pm Takeaways and Closing Remarks Burke Auditorium
5:30 pm Network and Reception 3rd Floor, Kroon Hall
SCHEDULE
2
PA N E L
DESCRIPTIONS
Overview: Chinese Overseas Investment: Trends and Impacts
				 9:20 am
The goal of this panel is to provide a broad overview of the trends and environmental, social and
economic impacts of Chinese overseas investment. Our panelists will focus on China’s second wave
of Outward Foreign Direct Investment (OFDI), highlight the environmental and social aspects of
investment, and discuss how Chinese investment can play a significant role in promoting sustainable
development worldwide. These issues will also be discussed with examples of investment practice in
Africa.
Moderator: Deborah S. Davis, Professor, Sociology, Yale University
Xiaoyang Tang, Associate Professor, International Relations, Tsinghua University
Ambassador David H. Shinn, Adjunct Professor, George Washington University
Tao Hu, China Program Director, World Wide Fund for Nature U.S. (WWF U.S.)
Panel I: Business Perspective on Environmental and Social Impacts of Chinese Overseas Investment
				 10:30 am
This panel explores how the business world incorporates environmental and social impacts into the
operations. Panelists will give an overview of Corporate Social Responsibility (CSR) peformance from
the perspectives of both a leading Chinese metal and mineral trading company and an established
U.S. multinational corporation. Field research and findings about Chinese investment in several Latin
American countries will be presented.
Moderator: Marian Chertow, Associate Professor, Yale F&ES
Weijun Xie, General Manager of Resource Development, China Minmetals Corporation
Katie Schindall, Consultant Program Manager, Sustainability at EMC
Rebecca Ray, Pre-Doctoral Fellow, Global Economic Governance Initiative, Boston University
PANELS
3
Panel II: Chinese Regulatory Governance on its Overseas Investment
				 11:50 am
This panel will discuss the regulatory framework governing Chinese overseas investment and explore
ways to strengthen the integration of environmental and social concerns into business investment
projects through government regulation and effective enforcement. The panelists will present
the environmental and social performance of Bank or IFC-funded projects in China vis-a-vis other
developing countries. Issues related to institutional capacity, political willingness, and public awareness
for effective enforcement will also be discussed.
Moderator: Daniel C. Esty, Professor, Yale F&ES and YLS
Larry Jiang, Principal Environmental Specialist, International Finance Corporation (IFC)
Denise Leung, Associate, World Resource Institute
Jingjing Zhang, Environmental Public Interest Lawyer, Yale World Fellow
Panel III: Chinese Funding in Multilateral Development Institutions
				 2:00 pm
This panel will present the trends of Chinese government involvement in multilateral institutions- from
a major recipient of international development grants and loans to an important donor in promoting
South-South development. China recently established a national strategy to fund BRICS Bank, AIIB
(Asian Infrastructure Development Bank), and Silk Road Fund. Why does China decide to invest billions
of dollars in building new financial institutions? How does the U.S. perceive such change of landscape
in development field? What are the long-term political, social, economical and environmental impacts
of China’s advancement in multilateral institutions?
Moderator: Bradford S. Gentry, Professor, Yale F&ES and SOM
Zhihong Zhang, Senior Program Coordinator, Climate Investment Funds, World Bank
Graham Webster, Research Scholar in Law and Senior Fellow, China Center, YLS
Tao Hu, Director, China Program, WWF U.S.
PANELS
4
Canada: China’s Overseas Investment in Energy Infrastructure
				 Kroon 321
Since 2005 there have been several Chinese state-owned enterprises, including PetroChina Co. Ltd.,
Sinopec, CNOOC Ltd. and China Investment Corp., that have invested in Canadian energy projects,
mostly oil sands and shale projects. Indeed, one of the biggest acquisition headlines of 2013 was
CNOOC’s acquisition of Nexen Inc. Recently, however, many have questioned the benefit China is
receiving from these investments as a suspicious political climate hinders quick development. Will
China continue to see energy investments into politically stable but reluctant developed countries as
viable? How has China’s strategy of approaching deals in Canada benefited or hindered development?
Jiang Wenran, Director, Canada-China Energy and Environment Forum
Africa: Wanbao Farm in Mozambique: Land Grab or Development?
				 Sage 24
Wanbao Xaixai Farm is one of the largest Chinese agricultural investments in Africa. It has an
ambitious plan to grow rice in an area of 20,000 hectares in Xai-Xai province of Mozambique and
comprehensively improve Mozambique’s food supply system. The Mozambican government views the
project as having strategic importance and has provided much support for it. However, there are NGOs
accusing this project of land grabbing. A report of National Geographic 2014 seemed to confirm this
accusation. Mainly based on first-hand findings from field research, this case study will demonstrate
the multiple facets of the Wanbao Farm project. By examining perspectives and arguments of
Chinese investors, Mozambican government and local communities, we will show the diverging
understandings on agricultural development, environmental protection and social responsibility
among the stakeholders. We will also compare the gap between plans and implementation to illustrate
the challenges facing Chinese investors in Africa.
Xiaoyang Tang, Associate Professor, International Relations, Tsinghua University
CASE STUDY
DESCRIPTIONS
CASESTUDIES
5
Latin America: Brazil-China Soybean Trade and Rainforest Conversation
				 Kroon G01
Over the past decade, China has developed a powerful investment and trade presence in Latin America
and the Caribbean. As part of this presence, China has replaced the European Union as the main
destination of Brazilian soybean exports, with its market share rising from 15% in 2000 to 53% in 2009.
This is likely to rise to 70-90% of soybean exports by 2020. In Charles Tang’s words,“America’s backyard
is growing a Chinese garden.”With increasing demand exerting pressure on Brazilian land, a key
question is how to incentivize local producers and Chinese investors toward better risk management
and social responsibility. We will discuss this issue within the context of the soy moratorium, Forest
Code, and other tools Brazil has at its disposal.
Charles Tang, Chairman, Brazil-China Chamber of Industry & Commerce
Asia: Hydro Development in the Amur-Heilong River Basin
				 Kroon 319
The transboundary Amur-Heilong River is the last remaining great free-flowing river in China without
dams in the main stem. Today, as a result of uncoordinated use of the river’s resources the productivity
and resilience of the Amur-Heilong ecosystem is gradually declining. While damming the main stem
of the Amur River would have hydropower benefits, it would destroy remaining fisheries, including
salmon and the endemic Kaluga sturgeon, and would have many other negative consequences
on sediment transport, aquatic and floodplain habitat, fisheries and wetland birds, water quality,
and nutrient transport into the Pacific Ocean. This case study summarizes history of Sino-Russian
cooperation in hydropower development with specific emphasis on interaction among NGOs,
investors, and government agencies from China.
Eugene Simonov, Coordinator, Rivers without Boundaries International Coalition
CASESTUDIES
6
SPEAKER
BIOGRAPHIES
Marian Chertow
Marian Chertow is Associate Professor of
Industrial Environmental Management and has
been Director of the Industrial Environmental
Management Program at the Yale School of
Forestry and Environmental Studies since 1991.
Her research and teaching focus on industrial
ecology, business/environment issues, waste
management, and environmental technology
innovation. Primary research interests are 1)
The study of industrial symbiosis including
geographically-based exchanges of wastes,
materials, energy, and water within networks of
businesses. 2) The potential of industrial ecology
to underpin ideas of the proposed Circular
Economy law in China. 3) The application of
innovation theory to the development of
environmental and energy technology.
Peter Crane
Peter Crane is the Dean of Yale School of
Forestry & Environmental Studies. Dean Crane’s
work focuses on the diversity of plant life: its
origin and fossil history, current status, and
conservation and use. From 1992 to 1999 he was
director of the Field Museum in Chicago with
overall responsibility for the museum’s scientific
programs. During this time he established
the Office of Environmental and Conservation
Programs and the Center for Cultural
Understanding and Change, which today make
up the Division of Environment, Culture, and
Conservation (ECCo). From 1999 to 2006 he was
director of the Royal Botanic Gardens, Kew, one
of the largest and most influential botanical
gardens in the world. His tenure at Kew saw
strengthening and expansion of the gardens’
scientific, conservation, and public programs.
Dean Crane was elected to the Royal Society
(the U.K. academy of sciences) in 1998.
Deborah S. Davis
Deborah S. Davis is Professor of Sociology at
Yale University. Her primary teaching interests
are inequality and stratification, contemporary
Chinese society, and methods of fieldwork. In
addition to teaching at Yale, she runs a summer
fieldwork seminar where Yale students work
collaboratively with students from Hong Kong
and China. Davis is currently a member of the
National Committee on US China Relations,
Associate Editor of The Journal of Asian Studies,
and on the editorial board of The China
Quarterly. At Yale she has served as Director of
Academic Programs at the Yale Center for the
Study of Globalization, Chair of the Department
of Sociology, Chair of the Council of East Asian
Studies, Director of Graduate Studies in both
East Asian Studies and Sociology.
Daniel Esty
Professor Esty is the author or editor of ten
books and numerous articles on sustainability
and environmental issues and the relationships
between environmental protection and
corporate strategy, competitiveness, trade,
globalization, metrics, governance, and
development. His prize-winning book (with
Andrew Winston), Green to Gold: How Smart
BIOGRAPHIES
7
Companies Use Environmental Strategy to
Innovate, Create Value, and Build Competitive
Advantage, argues that pollution control and
natural resource management have become
critical elements of marketplace success and
explains how leading-edge companies have
folded environmental thinking into their core
business strategies. Professor Esty has advised
companies of all sizes and in a wide range
of industries on corporate environmental or
sustainability strategy including Ikea, Coca-Cola,
Unilever, Alcoa, Hanes, Hannaford, Boeing, and
IBM.
Bradford S. Gentry
Mr. Gentry’s work explores the opportunities
for using private investment to improve
environmental performance. He works both
across and within particular sectors/problems.
The cross-sectoral work focuses on the steps
policy makers can take to help develop
opportunities for sustainable investments,
including market frameworks, information
systems, and shared investments/ partnerships.
The sectoral work is concentrated in three
major areas: increasing private investment in
the delivery of urban environmental services
(particularly drinking water and sanitation),
sustainable forest management, and cleaner
energy. Projects in all these areas are undertaken
across a range of contexts from New Haven,
to developing country megacities and to
wilderness forest systems.
Tao Hu
Dr. Hu Tao is China Program Director of WWF US.
He was a Senior Fellow and Senior Associate at
World Resources Institute (WRI) - a Washington
DC based think tank. Prior joining WRI, he was
the Senior Environmental Economist of Policy
Research Center of Ministry of Environmental
Protection (MEP), China. He also served as
the Senior Program Coordinator of UN-China
Climate Change Partnership Framework
Program (CCPF) during 2009-2010 and served as
a member of Lead Expert Group China Council
for International Cooperation on Environment
and Development (CCICED) during 2001-2007.
He was also the Chief Expert of WTO, Trade
and Environment Expert Group of Ministry of
Environmental Protection (MEP), China.
Rodney Irwin
Dr. Rodney Irwin is responsible for a portfolio
of projects designed to advance corporate
reporting taking sustainable development into
the mainstream reporting of an organization.
He is the link between WBCSD members
and standard / regulation setters and he is
leading projects in risk management, taxation,
mandatory reporting and is developing
education programs designed for senior finance
staff. Prior to this role, he was the Group Director
of Risk Management, Control and non-Financial
Reporting at TNT NV. He has also held senior
positions in Motorola, Abbey National and
started his career at Ernst & Young.He holds
a degree in Economics, a master’s degree
in management and a Doctorate where he
researched comparative corporate governance
and its interrelationship with ethical decision
making and reporting.
Wenran Jiang
Dr. Wenran Jiang is Associate Professor of
Political Science at the University of Alberta.
He is also Director of Canada-China Energy and
Environment Forum and its annual conference
since 2004. Currently, Dr. Jiang is a Wilson
Centre Global Fellow at the Woodrow Wilson
International Centre for Scholars in Washington
DC, and Special Advisor on China to the US and
BIOGRAPHIES
8
Canada based Energy Council. Dr. Jiang has
just returned from being partially seconded
to Alberta Department of Energy as a special
advisor on Asian market diversification (2012-
14). Before taking a partial leave from his tenure
at the University of Alberta, Dr. Jiang was the
Founding Director (2005-08) and Inaugural
Mactaggart Research Chair (2008-11) of the
University’s China Institute.
Larry Jiang
Larry Jiang is the Principal Environmental
Specialist at the International Finance
Corporation (IFC), the private sector arm of
the World Bank Group. Mr. Jiang leads the
environmental management of IFC’s global
investments in the chemical, petrochemical,
pharmaceutical, and biotech industry sectors.
He is in charge of the preparation and review
of World Bank Group’s environmental, health
& safety guidelines for these sectors, and he
has worked on more than 100 projects in 30
different countries. He is also involved in drafting
and revising the IFC Performance Standards
on Environmental and Social Sustainability,
which is the basis for the Equator Principles.
Prior to the World Bank Group/IFC, Mr. Jiang
worked as an environmental engineer for the
US Environmental Protection Agency (USEPA)
and US Agency for International Development
(USAID).
Denise Leung
Denise Leung is an Associate in the Sustainable
Finance Program at the World Resources
Institute (WRI). Her work focuses on improving
the environmental and social performance of
both overseas and domestic investments from
emerging economies such as China. She also
works on governance and sustainability issues
in the host countries that receive investments
from these countries, including analyzing
Chinese investments in Africa. Prior to joining
WRI, Denise worked as a researcher at the
Centre for Law and Environment at University
College London (UCL), where she focused on
governance, sustainability and regulation,
especially in relation to the EU and China. Her
work on China centered on compliance and
enforcement with environmental regulations.
Rebecca Ray
Rebecca Ray is a Research Fellow at the Boston
University Global Economic Governance
Initiative, where she coordinates the Working
Group on Development and the Environment in
the Americas’China in Latin America project. She
is a PhD student in economics at the University
of Massachusetts-Amherst, with an MA in
International Development Studies from George
Washington University. Her fieldwork has
included research on Chinese oil development
in Ecuador, as well as consulting for the Institute
for Sustainability, Education, and Action in
Salt Spring Island, Canada and the Partnership
for Food Industry Development in Managua,
Nicaragua. Prior to joining BU GEGI, she was a
research associate at the Center for Economic
and Policy Research in Washington, DC.
Katie Schindall
Katie Schindall leads EMC’s Supply Chain Social
& Environmental Responsibility and eWaste
programs, developing and implementing
strategies for sustainable sourcing and recycling
of EMC’s hardware products. Her past experience
includes developing corporate engagement
strategy at The Nature Conservancy; a Climate
Corps Fellowship at Sodexo; research analysis
and consulting with McKinsey’s Social
Sector Practice; and on-the-ground work for
TechnoServe Ghana and for a collaborative
BIOGRAPHIES
9
Australian land conservation project called
Gondwana Link. She has an MBA and a Master
of Environmental Management from Yale
University.
David H. Shinn
David Shinn has taught at the Elliott School
of International Affairs at George Washington
University since 2001. He previously served
for 37 years in the U.S. Foreign Service with
assignments at embassies in Lebanon, Kenya,
Tanzania, Mauritania, Cameroon, Sudan and as
ambassador to Burkina Faso and Ethiopia. He
is the co-author of China and Africa: A Century
of Engagement and Historical Dictionary of
Ethiopia. He has published numerous articles in
academic and policy journals and is a frequent
guest on the BBC, Voice of America, China
Central Television, Al-Jazeera, and Radio France
Internationale. He has a PhD in political science
from George Washington University.
Eugene Simonov
Eugene Simonov has been bridging gaps in
conservation work between Russia and the US,
Europe, China, Mongolia and East Asia in general
for the past 20 years. He has a degree in biology
from Moscow State University, a master degree
in environmental studies from Yale F&ES, and a
doctorate in nature conservation from China’s
Northeast Forestry University. He has a long
history of cooperation with the Biodiversity
Conservation Center, Socio-ecological Union,
World Bank, Global Environmental Facility, World
Wildlife Fund, Pacific Environment, UNECE,
Russian, Mongolian and Chinese bureaucracies
and local communities. Since 2004, he has
focused on trans boundary issues with a special
focus on the Amur River Basin, a highly complex
watershed of northeastern China, the Russian
Far East, and eastern Mongolia.
Charles Tang
Charles Tang is Chairman of the Brazil-China
Chamber of Commerce & Industry. He is also
a member of the World Policy Institute in New
York and the Fernand Braudel Institute of
World Economics in Sao Paulo. Charles is also
Honorary president of the Beijing International
Chamber of Commerce; member of the
International Advisory Council in Wuhan;
economic advisor to Jilin City and Huainan;
advisor to Jiangxi Association for Friendship
with Foreign Countries, Councilor of the Foreign
Trade Council of the Federation of Commerce
of São Paulo and Director of the Federation of
International Chambers of Commerce. He has
a bachelor’s degree from Cornell University
and completed law school at the Estácio de Sá
University in Brazil.
Xiaoyang Tang
Xiaoyang Tang is an Associate Professor in
the Department of International Relations at
Tsinghua University and a resident scholar at the
Carnegie-Tsinghua Center for Global Policy. His
research interests include political philosophy,
China’s engagement in Africa and modernization
process of the developing countries. He is the
author of China-Africa Economic Diplomacy
(2014) and has published extensively on Asia-
Africa relations. He completed his Ph.D. in the
philosophy department at the New School
for Social Research in New York. He earned his
M.A in philosophy from Freiburg University in
Germany and his B.A in business management
from Fudan University in Shanghai. He also
worked as a consultant for the World Bank,
USAID and various research institutes and
consulting companies. Before coming to
Tsinghua, he worked at International Food Policy
Research Institute (IFPRI) in Washington DC.
BIOGRAPHIES
10
Graham Webster
Graham Webster is a Research Scholar in Law
and a Senior Fellow, The China Center, at Yale
Law School. He researches U.S.–China relations,
East Asian politics and international relations,
and technology and society. Webster is also
an Adjunct Instructor in East Asian politics at
NYU’s Center for Global Affairs. In the past, he
worked at the Center for American Progress and
consulted for the Natural Resources Defense
Council China Program, the National Bureau of
Asian Research, and the Clinton Global Initiative.
Webster holds an A.M. in East Asian Studies from
Harvard University and a B.S. from Northwestern
University. His website is gwbstr.com.
Weijun Xie
Weijun Xie is the General Manager of Resource
Development Department in China Minmetals
Corporation,where he leads the global mergers
and acquisitions of mineral resources and
sustainable development issues. He guided
China Minmetals to become an internationally
leading company in Corporate Social
Responsibility and sustainability performance,
and he frequently speaks in major international
CSR and sustainability conferences, including
the Rio+20 UN Sustainable Conference. He
served as an expert member of the United
Nations Global Compact (UNGC) Environment
Stewardship Project and successfully organized
China Minmetals to attend the UNGC Leaders
Summit 2010, where the UN Secretary-General
Ban Ki-moon highly recognized the company’s
philosophy and performance of sustainable
development.
Zhihong Zhang
Zhihong Zhang is Senior Program Coordinator
at the Climate Investment Funds Administrative
Unit, overseeing the Clean Technology Fund and
the Program for Scaling up Renewable Energy
in Low Income Countries. From 2004 to 2011,
he was Senior Climate Change Specialist and
Coordinator for Climate Change Mitigation at
the Global Environment Facility. In this capacity,
he led the development and implementation
of the GEF climate change focal area strategy
and was extensively engaged in the UN climate
change negotiations on mitigation, finance,
and technology transfer. Prior to joining the
GEF, Zhihong served as Chief Technical Advisor
on behalf of the UN Industrial Development
Organization to manage energy efficiency
projects in China. Zhihong holds a Ph.D. in
Energy Management and Policy from the
University of Pennsylvania.
Jingjing Zhang
Committed to justice and strengthening
the rule of law, Zhang Jingjing represents
pollution victims in lawsuits and promotes
public participation by helping communities
organize public hearings on environmental
rights. Through her work with the Center for
Legal Assistance to Pollution Victims (CLAPV),
she has won milestone cases in Chinese courts,
including a successful environmental class
action suit against a chemical company that
discharged toxic substances in Fujian Province,
and has been called China’s Erin Brockovich. She
was selected as a Yale World Fellow in 2008, and
won the SEE-TNC (The Nature Conservancy) Eco-
award in May 2011. She has been working with
local environmental lawyers from the Mekong
River region and Mexico on their legal cases
against Chinese companies since 2010.
BIOGRAPHIES
11
NOTES
THANK
OUR SPONSORS
Dean Peter Crane, Yale F&ES
Associate Dean Gordon Geballe, Yale F&ES
Yale F&ES Class of 80’Student Project Fund, Yale F&ES
Yale Graduate and Professonal Student Senate
Yale Center for Business and the Environment
PLANNING COMMITTEE
YALE FORESTRY & ENVIRONMENTAL STUDIES
Yaping Cheng (MEM‘15)
Boming Cui (MEM‘16)
Anna Finke (MF‘16)
Tianjun Hou (MESc‘15)
Andrew Moffat (MEM‘16)
Jie Pan (MEM‘15)
Yiyuan Jasmine Qin (MEM‘15)
Yinong Sun (MESc‘16)
Wan-Yu Sung (MEM‘16)
Kaiyang Xu (MF‘16)
Jiani Yang (MESc‘16)
Daphne Yin (MEM‘15)
20
15

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Conference Brochure

  • 1. Chinese Overseas Investment & its Environmental and Social Impacts April 4, 2015 Yale University ∙ Kroon Hall ∙ 195 Prospect Street, New Haven, CT
  • 2. WELCOME Since 2005 China has invested nearly $900 billion overseas, the majority of it is in the developing world. The recent years have witnessed a shift from developing to developed regions including North America and Europe. These financial flows have far-reaching impacts, including legal, political, economic, environmental, and social implications. The Yale Symposium on Chinese Overseas Investment and its Environmental and Social Impacts explores the relationship between China’s overseas investment and the impacts - both negative and positive - on natural resources, particularly in the forestry, minerals, water, and energy sectors. By convening key actors from academia, public and private sectors, we aim to facilitate knowledge sharing that can steer Chinese overseas investment toward stronger environmental and social governance. For more information, please visit: http://china-symposium.yale.edu/
  • 3. SCHEDULE AT-A-GLANCE 8:30 am Registration and Breakfast 3rd Floor, Kroon Hall 9:00 am Welcome Burke Auditorium Dean Peter Crane, Yale School of Forestry & Environmental Studies (Yale F&ES) Rodney Irwin, World Business Council for Sustainable Development 9:20 am Overview: Chinese Overseas Investment -- Trend and Impacts Burke Auditorium Moderator: Deborah S. Davis, Professor, Sociology, Yale University Xiaoyang Tang, Associate Professor, International Relations, Tsinghua University Ambassador David H. Shinn, Adjunct Professor, George Washington University Tao Hu, China Program Director, World Wide Fund for Nature U.S. (WWF U.S.) 10:30 am Panel I: Business Perspective on Environmental and Social Impacts of Chinese Overseas Investment Burke Auditorium Moderator: Marian Chertow, Associate Professor, Yale F&ES Weijun Xie, General Manager of Resource Development, China Minmetals Corporation Katie Schindall, Consultant Program Manager, Sustainability at EMC Rebecca Ray, Pre-Doctoral Fellow, Global Economic Governance Initiative, Boston University 11:50 am Panel II: Chinese Regulatory Governance on its Overseas Investment Burke Auditorium Moderator: Daniel C. Esty, Professor, Yale F&ES and Yale Law School (YLS) Larry Jiang, Principal Environmental Specialist, International Finance Corporation (IFC) Denise Leung, Associate, World Resource Institute Jingjing Zhang, Environmental Public Interest Lawyer, Yale World Fellow 1:00 pm Lunch 3rd Floor, Kroon Hall 2:00 pm Panel III: Chinese Funding in Multilateral Development Institutions Burke Auditorium Moderator: Bradford S. Gentry, Professor, Yale F&ES, Yale School of Management (SOM) Zhihong Zhang, Senior Program Coordinator, Climate Investment Funds, World Bank Graham Webster, Research Scholar in Law and Senior Fellow, China Center, YLS Tao Hu, Director, China Program, WWF U.S. SCHEDULE 1
  • 4. 3:20 pm Case Study Sessions Session A: Canada: China’s Overseas Investment in Energy Infrastructure Kroon 321 Wenran Jiang, Director, Canada-China Energy and Environment Forum Session B: Africa: Wanbao Farm in Mozambique: Land grab or Development? Sage 24 Xiaoyang Tang, Associate Professor, International Relations, Tsinghua University Session C: Latin America: Brazil-China Soybean Trade and Rainforest Conversation Kroon G01 Charles Tang, Chairman, Brazil-China Chamber of Industry & Commerce Session D: Asia: Hydro Development in the Amur-Heilong River Basin Kroon 319 Eugene Simonov, Coordinator, Rivers without Boundaries International Coalition 5:00 pm Takeaways and Closing Remarks Burke Auditorium 5:30 pm Network and Reception 3rd Floor, Kroon Hall SCHEDULE 2
  • 5. PA N E L DESCRIPTIONS Overview: Chinese Overseas Investment: Trends and Impacts 9:20 am The goal of this panel is to provide a broad overview of the trends and environmental, social and economic impacts of Chinese overseas investment. Our panelists will focus on China’s second wave of Outward Foreign Direct Investment (OFDI), highlight the environmental and social aspects of investment, and discuss how Chinese investment can play a significant role in promoting sustainable development worldwide. These issues will also be discussed with examples of investment practice in Africa. Moderator: Deborah S. Davis, Professor, Sociology, Yale University Xiaoyang Tang, Associate Professor, International Relations, Tsinghua University Ambassador David H. Shinn, Adjunct Professor, George Washington University Tao Hu, China Program Director, World Wide Fund for Nature U.S. (WWF U.S.) Panel I: Business Perspective on Environmental and Social Impacts of Chinese Overseas Investment 10:30 am This panel explores how the business world incorporates environmental and social impacts into the operations. Panelists will give an overview of Corporate Social Responsibility (CSR) peformance from the perspectives of both a leading Chinese metal and mineral trading company and an established U.S. multinational corporation. Field research and findings about Chinese investment in several Latin American countries will be presented. Moderator: Marian Chertow, Associate Professor, Yale F&ES Weijun Xie, General Manager of Resource Development, China Minmetals Corporation Katie Schindall, Consultant Program Manager, Sustainability at EMC Rebecca Ray, Pre-Doctoral Fellow, Global Economic Governance Initiative, Boston University PANELS 3
  • 6. Panel II: Chinese Regulatory Governance on its Overseas Investment 11:50 am This panel will discuss the regulatory framework governing Chinese overseas investment and explore ways to strengthen the integration of environmental and social concerns into business investment projects through government regulation and effective enforcement. The panelists will present the environmental and social performance of Bank or IFC-funded projects in China vis-a-vis other developing countries. Issues related to institutional capacity, political willingness, and public awareness for effective enforcement will also be discussed. Moderator: Daniel C. Esty, Professor, Yale F&ES and YLS Larry Jiang, Principal Environmental Specialist, International Finance Corporation (IFC) Denise Leung, Associate, World Resource Institute Jingjing Zhang, Environmental Public Interest Lawyer, Yale World Fellow Panel III: Chinese Funding in Multilateral Development Institutions 2:00 pm This panel will present the trends of Chinese government involvement in multilateral institutions- from a major recipient of international development grants and loans to an important donor in promoting South-South development. China recently established a national strategy to fund BRICS Bank, AIIB (Asian Infrastructure Development Bank), and Silk Road Fund. Why does China decide to invest billions of dollars in building new financial institutions? How does the U.S. perceive such change of landscape in development field? What are the long-term political, social, economical and environmental impacts of China’s advancement in multilateral institutions? Moderator: Bradford S. Gentry, Professor, Yale F&ES and SOM Zhihong Zhang, Senior Program Coordinator, Climate Investment Funds, World Bank Graham Webster, Research Scholar in Law and Senior Fellow, China Center, YLS Tao Hu, Director, China Program, WWF U.S. PANELS 4
  • 7. Canada: China’s Overseas Investment in Energy Infrastructure Kroon 321 Since 2005 there have been several Chinese state-owned enterprises, including PetroChina Co. Ltd., Sinopec, CNOOC Ltd. and China Investment Corp., that have invested in Canadian energy projects, mostly oil sands and shale projects. Indeed, one of the biggest acquisition headlines of 2013 was CNOOC’s acquisition of Nexen Inc. Recently, however, many have questioned the benefit China is receiving from these investments as a suspicious political climate hinders quick development. Will China continue to see energy investments into politically stable but reluctant developed countries as viable? How has China’s strategy of approaching deals in Canada benefited or hindered development? Jiang Wenran, Director, Canada-China Energy and Environment Forum Africa: Wanbao Farm in Mozambique: Land Grab or Development? Sage 24 Wanbao Xaixai Farm is one of the largest Chinese agricultural investments in Africa. It has an ambitious plan to grow rice in an area of 20,000 hectares in Xai-Xai province of Mozambique and comprehensively improve Mozambique’s food supply system. The Mozambican government views the project as having strategic importance and has provided much support for it. However, there are NGOs accusing this project of land grabbing. A report of National Geographic 2014 seemed to confirm this accusation. Mainly based on first-hand findings from field research, this case study will demonstrate the multiple facets of the Wanbao Farm project. By examining perspectives and arguments of Chinese investors, Mozambican government and local communities, we will show the diverging understandings on agricultural development, environmental protection and social responsibility among the stakeholders. We will also compare the gap between plans and implementation to illustrate the challenges facing Chinese investors in Africa. Xiaoyang Tang, Associate Professor, International Relations, Tsinghua University CASE STUDY DESCRIPTIONS CASESTUDIES 5
  • 8. Latin America: Brazil-China Soybean Trade and Rainforest Conversation Kroon G01 Over the past decade, China has developed a powerful investment and trade presence in Latin America and the Caribbean. As part of this presence, China has replaced the European Union as the main destination of Brazilian soybean exports, with its market share rising from 15% in 2000 to 53% in 2009. This is likely to rise to 70-90% of soybean exports by 2020. In Charles Tang’s words,“America’s backyard is growing a Chinese garden.”With increasing demand exerting pressure on Brazilian land, a key question is how to incentivize local producers and Chinese investors toward better risk management and social responsibility. We will discuss this issue within the context of the soy moratorium, Forest Code, and other tools Brazil has at its disposal. Charles Tang, Chairman, Brazil-China Chamber of Industry & Commerce Asia: Hydro Development in the Amur-Heilong River Basin Kroon 319 The transboundary Amur-Heilong River is the last remaining great free-flowing river in China without dams in the main stem. Today, as a result of uncoordinated use of the river’s resources the productivity and resilience of the Amur-Heilong ecosystem is gradually declining. While damming the main stem of the Amur River would have hydropower benefits, it would destroy remaining fisheries, including salmon and the endemic Kaluga sturgeon, and would have many other negative consequences on sediment transport, aquatic and floodplain habitat, fisheries and wetland birds, water quality, and nutrient transport into the Pacific Ocean. This case study summarizes history of Sino-Russian cooperation in hydropower development with specific emphasis on interaction among NGOs, investors, and government agencies from China. Eugene Simonov, Coordinator, Rivers without Boundaries International Coalition CASESTUDIES 6
  • 9. SPEAKER BIOGRAPHIES Marian Chertow Marian Chertow is Associate Professor of Industrial Environmental Management and has been Director of the Industrial Environmental Management Program at the Yale School of Forestry and Environmental Studies since 1991. Her research and teaching focus on industrial ecology, business/environment issues, waste management, and environmental technology innovation. Primary research interests are 1) The study of industrial symbiosis including geographically-based exchanges of wastes, materials, energy, and water within networks of businesses. 2) The potential of industrial ecology to underpin ideas of the proposed Circular Economy law in China. 3) The application of innovation theory to the development of environmental and energy technology. Peter Crane Peter Crane is the Dean of Yale School of Forestry & Environmental Studies. Dean Crane’s work focuses on the diversity of plant life: its origin and fossil history, current status, and conservation and use. From 1992 to 1999 he was director of the Field Museum in Chicago with overall responsibility for the museum’s scientific programs. During this time he established the Office of Environmental and Conservation Programs and the Center for Cultural Understanding and Change, which today make up the Division of Environment, Culture, and Conservation (ECCo). From 1999 to 2006 he was director of the Royal Botanic Gardens, Kew, one of the largest and most influential botanical gardens in the world. His tenure at Kew saw strengthening and expansion of the gardens’ scientific, conservation, and public programs. Dean Crane was elected to the Royal Society (the U.K. academy of sciences) in 1998. Deborah S. Davis Deborah S. Davis is Professor of Sociology at Yale University. Her primary teaching interests are inequality and stratification, contemporary Chinese society, and methods of fieldwork. In addition to teaching at Yale, she runs a summer fieldwork seminar where Yale students work collaboratively with students from Hong Kong and China. Davis is currently a member of the National Committee on US China Relations, Associate Editor of The Journal of Asian Studies, and on the editorial board of The China Quarterly. At Yale she has served as Director of Academic Programs at the Yale Center for the Study of Globalization, Chair of the Department of Sociology, Chair of the Council of East Asian Studies, Director of Graduate Studies in both East Asian Studies and Sociology. Daniel Esty Professor Esty is the author or editor of ten books and numerous articles on sustainability and environmental issues and the relationships between environmental protection and corporate strategy, competitiveness, trade, globalization, metrics, governance, and development. His prize-winning book (with Andrew Winston), Green to Gold: How Smart BIOGRAPHIES 7
  • 10. Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage, argues that pollution control and natural resource management have become critical elements of marketplace success and explains how leading-edge companies have folded environmental thinking into their core business strategies. Professor Esty has advised companies of all sizes and in a wide range of industries on corporate environmental or sustainability strategy including Ikea, Coca-Cola, Unilever, Alcoa, Hanes, Hannaford, Boeing, and IBM. Bradford S. Gentry Mr. Gentry’s work explores the opportunities for using private investment to improve environmental performance. He works both across and within particular sectors/problems. The cross-sectoral work focuses on the steps policy makers can take to help develop opportunities for sustainable investments, including market frameworks, information systems, and shared investments/ partnerships. The sectoral work is concentrated in three major areas: increasing private investment in the delivery of urban environmental services (particularly drinking water and sanitation), sustainable forest management, and cleaner energy. Projects in all these areas are undertaken across a range of contexts from New Haven, to developing country megacities and to wilderness forest systems. Tao Hu Dr. Hu Tao is China Program Director of WWF US. He was a Senior Fellow and Senior Associate at World Resources Institute (WRI) - a Washington DC based think tank. Prior joining WRI, he was the Senior Environmental Economist of Policy Research Center of Ministry of Environmental Protection (MEP), China. He also served as the Senior Program Coordinator of UN-China Climate Change Partnership Framework Program (CCPF) during 2009-2010 and served as a member of Lead Expert Group China Council for International Cooperation on Environment and Development (CCICED) during 2001-2007. He was also the Chief Expert of WTO, Trade and Environment Expert Group of Ministry of Environmental Protection (MEP), China. Rodney Irwin Dr. Rodney Irwin is responsible for a portfolio of projects designed to advance corporate reporting taking sustainable development into the mainstream reporting of an organization. He is the link between WBCSD members and standard / regulation setters and he is leading projects in risk management, taxation, mandatory reporting and is developing education programs designed for senior finance staff. Prior to this role, he was the Group Director of Risk Management, Control and non-Financial Reporting at TNT NV. He has also held senior positions in Motorola, Abbey National and started his career at Ernst & Young.He holds a degree in Economics, a master’s degree in management and a Doctorate where he researched comparative corporate governance and its interrelationship with ethical decision making and reporting. Wenran Jiang Dr. Wenran Jiang is Associate Professor of Political Science at the University of Alberta. He is also Director of Canada-China Energy and Environment Forum and its annual conference since 2004. Currently, Dr. Jiang is a Wilson Centre Global Fellow at the Woodrow Wilson International Centre for Scholars in Washington DC, and Special Advisor on China to the US and BIOGRAPHIES 8
  • 11. Canada based Energy Council. Dr. Jiang has just returned from being partially seconded to Alberta Department of Energy as a special advisor on Asian market diversification (2012- 14). Before taking a partial leave from his tenure at the University of Alberta, Dr. Jiang was the Founding Director (2005-08) and Inaugural Mactaggart Research Chair (2008-11) of the University’s China Institute. Larry Jiang Larry Jiang is the Principal Environmental Specialist at the International Finance Corporation (IFC), the private sector arm of the World Bank Group. Mr. Jiang leads the environmental management of IFC’s global investments in the chemical, petrochemical, pharmaceutical, and biotech industry sectors. He is in charge of the preparation and review of World Bank Group’s environmental, health & safety guidelines for these sectors, and he has worked on more than 100 projects in 30 different countries. He is also involved in drafting and revising the IFC Performance Standards on Environmental and Social Sustainability, which is the basis for the Equator Principles. Prior to the World Bank Group/IFC, Mr. Jiang worked as an environmental engineer for the US Environmental Protection Agency (USEPA) and US Agency for International Development (USAID). Denise Leung Denise Leung is an Associate in the Sustainable Finance Program at the World Resources Institute (WRI). Her work focuses on improving the environmental and social performance of both overseas and domestic investments from emerging economies such as China. She also works on governance and sustainability issues in the host countries that receive investments from these countries, including analyzing Chinese investments in Africa. Prior to joining WRI, Denise worked as a researcher at the Centre for Law and Environment at University College London (UCL), where she focused on governance, sustainability and regulation, especially in relation to the EU and China. Her work on China centered on compliance and enforcement with environmental regulations. Rebecca Ray Rebecca Ray is a Research Fellow at the Boston University Global Economic Governance Initiative, where she coordinates the Working Group on Development and the Environment in the Americas’China in Latin America project. She is a PhD student in economics at the University of Massachusetts-Amherst, with an MA in International Development Studies from George Washington University. Her fieldwork has included research on Chinese oil development in Ecuador, as well as consulting for the Institute for Sustainability, Education, and Action in Salt Spring Island, Canada and the Partnership for Food Industry Development in Managua, Nicaragua. Prior to joining BU GEGI, she was a research associate at the Center for Economic and Policy Research in Washington, DC. Katie Schindall Katie Schindall leads EMC’s Supply Chain Social & Environmental Responsibility and eWaste programs, developing and implementing strategies for sustainable sourcing and recycling of EMC’s hardware products. Her past experience includes developing corporate engagement strategy at The Nature Conservancy; a Climate Corps Fellowship at Sodexo; research analysis and consulting with McKinsey’s Social Sector Practice; and on-the-ground work for TechnoServe Ghana and for a collaborative BIOGRAPHIES 9
  • 12. Australian land conservation project called Gondwana Link. She has an MBA and a Master of Environmental Management from Yale University. David H. Shinn David Shinn has taught at the Elliott School of International Affairs at George Washington University since 2001. He previously served for 37 years in the U.S. Foreign Service with assignments at embassies in Lebanon, Kenya, Tanzania, Mauritania, Cameroon, Sudan and as ambassador to Burkina Faso and Ethiopia. He is the co-author of China and Africa: A Century of Engagement and Historical Dictionary of Ethiopia. He has published numerous articles in academic and policy journals and is a frequent guest on the BBC, Voice of America, China Central Television, Al-Jazeera, and Radio France Internationale. He has a PhD in political science from George Washington University. Eugene Simonov Eugene Simonov has been bridging gaps in conservation work between Russia and the US, Europe, China, Mongolia and East Asia in general for the past 20 years. He has a degree in biology from Moscow State University, a master degree in environmental studies from Yale F&ES, and a doctorate in nature conservation from China’s Northeast Forestry University. He has a long history of cooperation with the Biodiversity Conservation Center, Socio-ecological Union, World Bank, Global Environmental Facility, World Wildlife Fund, Pacific Environment, UNECE, Russian, Mongolian and Chinese bureaucracies and local communities. Since 2004, he has focused on trans boundary issues with a special focus on the Amur River Basin, a highly complex watershed of northeastern China, the Russian Far East, and eastern Mongolia. Charles Tang Charles Tang is Chairman of the Brazil-China Chamber of Commerce & Industry. He is also a member of the World Policy Institute in New York and the Fernand Braudel Institute of World Economics in Sao Paulo. Charles is also Honorary president of the Beijing International Chamber of Commerce; member of the International Advisory Council in Wuhan; economic advisor to Jilin City and Huainan; advisor to Jiangxi Association for Friendship with Foreign Countries, Councilor of the Foreign Trade Council of the Federation of Commerce of São Paulo and Director of the Federation of International Chambers of Commerce. He has a bachelor’s degree from Cornell University and completed law school at the Estácio de Sá University in Brazil. Xiaoyang Tang Xiaoyang Tang is an Associate Professor in the Department of International Relations at Tsinghua University and a resident scholar at the Carnegie-Tsinghua Center for Global Policy. His research interests include political philosophy, China’s engagement in Africa and modernization process of the developing countries. He is the author of China-Africa Economic Diplomacy (2014) and has published extensively on Asia- Africa relations. He completed his Ph.D. in the philosophy department at the New School for Social Research in New York. He earned his M.A in philosophy from Freiburg University in Germany and his B.A in business management from Fudan University in Shanghai. He also worked as a consultant for the World Bank, USAID and various research institutes and consulting companies. Before coming to Tsinghua, he worked at International Food Policy Research Institute (IFPRI) in Washington DC. BIOGRAPHIES 10
  • 13. Graham Webster Graham Webster is a Research Scholar in Law and a Senior Fellow, The China Center, at Yale Law School. He researches U.S.–China relations, East Asian politics and international relations, and technology and society. Webster is also an Adjunct Instructor in East Asian politics at NYU’s Center for Global Affairs. In the past, he worked at the Center for American Progress and consulted for the Natural Resources Defense Council China Program, the National Bureau of Asian Research, and the Clinton Global Initiative. Webster holds an A.M. in East Asian Studies from Harvard University and a B.S. from Northwestern University. His website is gwbstr.com. Weijun Xie Weijun Xie is the General Manager of Resource Development Department in China Minmetals Corporation,where he leads the global mergers and acquisitions of mineral resources and sustainable development issues. He guided China Minmetals to become an internationally leading company in Corporate Social Responsibility and sustainability performance, and he frequently speaks in major international CSR and sustainability conferences, including the Rio+20 UN Sustainable Conference. He served as an expert member of the United Nations Global Compact (UNGC) Environment Stewardship Project and successfully organized China Minmetals to attend the UNGC Leaders Summit 2010, where the UN Secretary-General Ban Ki-moon highly recognized the company’s philosophy and performance of sustainable development. Zhihong Zhang Zhihong Zhang is Senior Program Coordinator at the Climate Investment Funds Administrative Unit, overseeing the Clean Technology Fund and the Program for Scaling up Renewable Energy in Low Income Countries. From 2004 to 2011, he was Senior Climate Change Specialist and Coordinator for Climate Change Mitigation at the Global Environment Facility. In this capacity, he led the development and implementation of the GEF climate change focal area strategy and was extensively engaged in the UN climate change negotiations on mitigation, finance, and technology transfer. Prior to joining the GEF, Zhihong served as Chief Technical Advisor on behalf of the UN Industrial Development Organization to manage energy efficiency projects in China. Zhihong holds a Ph.D. in Energy Management and Policy from the University of Pennsylvania. Jingjing Zhang Committed to justice and strengthening the rule of law, Zhang Jingjing represents pollution victims in lawsuits and promotes public participation by helping communities organize public hearings on environmental rights. Through her work with the Center for Legal Assistance to Pollution Victims (CLAPV), she has won milestone cases in Chinese courts, including a successful environmental class action suit against a chemical company that discharged toxic substances in Fujian Province, and has been called China’s Erin Brockovich. She was selected as a Yale World Fellow in 2008, and won the SEE-TNC (The Nature Conservancy) Eco- award in May 2011. She has been working with local environmental lawyers from the Mekong River region and Mexico on their legal cases against Chinese companies since 2010. BIOGRAPHIES 11
  • 14. NOTES
  • 15. THANK OUR SPONSORS Dean Peter Crane, Yale F&ES Associate Dean Gordon Geballe, Yale F&ES Yale F&ES Class of 80’Student Project Fund, Yale F&ES Yale Graduate and Professonal Student Senate Yale Center for Business and the Environment PLANNING COMMITTEE YALE FORESTRY & ENVIRONMENTAL STUDIES Yaping Cheng (MEM‘15) Boming Cui (MEM‘16) Anna Finke (MF‘16) Tianjun Hou (MESc‘15) Andrew Moffat (MEM‘16) Jie Pan (MEM‘15) Yiyuan Jasmine Qin (MEM‘15) Yinong Sun (MESc‘16) Wan-Yu Sung (MEM‘16) Kaiyang Xu (MF‘16) Jiani Yang (MESc‘16) Daphne Yin (MEM‘15)
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