The document provides an introduction to China's "Belt and Road Initiatives" which aims to improve connectivity and cooperation among countries in Eurasia, Africa and the Pacific. It discusses: 1) The origins and goals of the Belt and Road Initiative which was announced in 2013 and aims to build trade and infrastructure networks along ancient Silk Road trade routes. 2) How the initiative has expanded beyond the original regional focus to include over 100 participating countries worldwide through projects funded by Chinese banks and investment vehicles. 3) The relevance and potential areas of cooperation for New Zealand in the initiative, including through the Asian Infrastructure Investment Bank. 4) The role of Bank of China in supporting the initiative through funding projects along

1. Introduction to
“Belt and Road” Initiatives
BY WEE LI CHEONG
BANK OF CHINA (New Zealand)
July 2017
Camel caravans in the heart of a desert in Gansu province, where goods were
transported on camelback through its magnificent deserts hundreds of years ago

2. Key Topic
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1.Introduction to “Belt and Road” Initiatives
2.“Belt and Road” No Longer a Regional Initiatives
3.How Relevant “Belt and Road” to New Zealand
4.Bank of China’s Involvement in the “Belt and
Road” Initiatives
2

3. Part 1
Introduction to “Belt and
Road” Initiatives

4. Part 1 – Introduction to “Belt and Road” Initiatives
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On September 7, 2013, President Xi Jinping delivered an important
speech at Kazakhstan's Nazarbayev University, and he first proposed
the initiative of building a new Silk Road Economic Belt.
On October 3, 2013, President Xi delivered an important speech to
Indonesian Parliament, he clearly pointed out that China could be
committed to greater connectivity with ASEAN countries, and
vigorously develop maritime partnership in a joint effort to build the,
"Maritime Silk Road of the 21st century".
On March 2015, China unveiled the Belt and Road Action Plan to
provide a framework in promoting practical cooperation in all fields,
and work to build a community of shared interests, destiny and
responsibility featuring mutual political trust, economic integration
and cultural inclusiveness.
5 Cooperation Priorities
Belt and Road Initiative is not just about
infrastructure.
It is actually a comprehensive framework
to facilitate the communication among
related countries and regions and their
peoples in terms of economy, culture,
science and art.
BRI is a Systematic Project, which should
be jointly built through consultation to
meet the interest of all, and efforts should
be made to integrate the development
strategies of the countries involved

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South
China
Sea
Belt and Road Action Plan
unveiled in March 2015 to
include South Pacific
5
The Silk Road Economic Belt
The Maritime Silk Road
Part 1 – Introduction to “Belt and Road” Initiatives

6. 65
1. China Mongolia And Russia Economic Corridor
2. New Eurasian Land Bridge
3. China - Central Asia - Western Asia
4. China - Indo-China Peninsula
5. China-Pakistan Economic Corridor
6. Bangladesh-China-India-Myanmar Economic Corridor
Directions Corridors
Strategic Orientation of Silk Road Economic
Belt and its direction
Strategic Orientation of 21st-Century
Maritime Silk Road and its direction
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1. Going from China to Central Asia, Russia and Europe (the Baltic Sea)
2. Linking China with the Persian Gulf and the Mediterranean Sea through
Central Asia and West Asia
3. Connecting China with Southeast Asia, South Asia and the Indian Ocean.
4. Going from China's coast to Europe through the South China Sea and
the Indian Ocean，
5. Going from China's coast to the South Pacific through the South China
Sea
Baltic Sea
Persian Gulf
Indian
Ocean
Indian
Ocean
South
Pacific
Mediterranean
Sea
Part 1 – Introduction to “Belt and Road” Initiatives

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Part 1 – Introduction to “Belt and Road” Initiatives
Results from the Belt and Road since 2013
US$947.8 billion of bilateral
trade with countries along the
BRI.
Direct investment of US$14.53
billion from China to
countries along the BRI.
Established 77 economic
cooperation zones in 36
countries with participation
and investment from more
than 1,000 Chinese companies
and a total investment of
US$18.55 billion.
Chinese companies in the
Economic Cooperation Zones
have generated US$50.69
billion in industrial output,
paid US$1 billion in local taxes
and created 177,000 jobs for
the local people.
More than 100 countries have
expressed their support and
willingness to participate in the
BRI.
across 10 countries

8. Part 2
“Belt and Road” No
Longer a Regional
Initiatives.

9. Development of Free Trade Zones to further boost connectivity and trade
FTA already executed (x14)
Multilateral FTA
(x1)
FTA with Developed Countries
(FTA) (x6)
Bilateral FTA with
Developing Countries
(x4)
Free Trade Zone in China
(x11)
China - ASEAN
(RCEP)
(10+6)
China - New Zealand
China - Singapore
China - Iceland
China - Switzerland
China - Australia
China - South Korea
China - Pakistan
China - Chile
China - Peru
China - Costa Rica
X 1 in 2013
X 3 in 2014
X 7 in 2016
Being negotiated FTZ (x7) Being discussed FTZ (x5)
Multilateral FTA
(x4)
Bilateral FTA
(x3)
Multilateral FTA
Bilateral FTZ
(x3)
China-GCC
China-JPN-KR FTZ
China-ASEAN FTZ
China - Norway
China - Sri Lanka
China - Maldives
Sino-Euro FTZ Initiative
China - India
China - Columbia
China - Moldova
China - Georgia
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Part 2 – “Belt and Road” no longer a regional initiatives. It’s global.

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Part 2 – “Belt and Road” no longer a regional initiatives. It’s global.
• The initial “Belt and Road” projects and funding were mostly regional, mostly
developing countries and mostly funded via Chinese Government’s Policy Banks
through concessional Government loan
• In 2013 and 2014, “the New BRICS Development Bank”, “Silk Road Fund” and “AIIB”
were created to support the Belt and Road initiatives. Providing additional funding
alternatives of a combined capital of US$190 billion.
• In 2015, Chinese commercial banks such as Bank of China pledged US$100 billion of
Belt and Road funding over the next 3 years.
• In 2015, The first-ever private equity fund aimed at improving the ecological
environment of the Belt and Road was initiated which has 1st round investment of 30
billion yuan (US$ 4.8 billion)
• In 2017, Deutsche Bank, Germany largest bank plans to finance US$3 billion worth of
Belt and Road projects in partnership with China Development Bank, being the 1st
foreign global lender to participate in this initiatives
• In 2017, Hong Kong’s Securities and Futures Commission says it is willing to be more
flexible in approving “One Belt, One Road” initiative-linked companies to list on the
main board, even if they do not meet certain criteria.
• Presently, AIIB have partnered with World Bank and ABD in many if its Belt and Road
projects and were rated AAA by S&P, Moody and Fitch. Growing membership from
non-regional members i.e. Developed Countries and to balance their risk portfolio,
have resulted in AIIB to start focusing funding high quality projects in developed
countries
• AIIB Partnership with IFC with US$150million investment for IFC Emerging Asia Fund –
For investment in Emerging Markets
• During the Belt and Road Forum in May 2017, President Xi announced an additional
USD124 billion for the Silk Road Fund.
Launched by several top enterprises in China including Elion Resources,
China Oceanwide, Chint Group, Huiyuan Juice, Macrolink, JuneYao,
Ping’an Bank and Sino-Singapore Tianjin Eco-city.
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Researched and compiled by Wee Li Cheong, Bank of China

11. Part 3
How Relevant
“Belt and Road”
to New Zealand

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Part 3 – How relevant “Belt and Road” to New Zealand
• Public Private Partnership
 Design-Build-Finance-Operate
 Most common form of PPP
• Joint Venture
• Foreign Direct Investment
• Involvement of Public & Private Enterprise
Potential Cooperation Areas Cooperation Mode
Potential Cooperation
New Zealand became the 1st Non-regional Member and 1st Western Developed
Countries to join AIIB making NZ the 24th Founding Members of AIIB
Special
Economic
Zones
High Tech
Industrial
Parks
Tourism &
Services
Agriculture &
Trade
Infrastructure Port
Cultural
IT/Software &
Big Data

13. Part 4
Bank of China’s
Involvement in the
“Belt and Road” Initiatives

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Part 4 – Bank of China’s involvement in “Belt and Road” Initiatives
• In 2015, Bank of China pledged US$100 billion of Belt and Road funding over the next 3 years.
• By end of March 2017, the Bank have actively followed about 460 financing projects along the Belt and Road with an intention to
finance of about USD$100 billion. To date, a total loan of USD$30 billion have been granted by the Bank to Belt and Road countries
• As at May 2017, a total of USD7.6 billion of bonds issued by BOC Dubai, Abu Dhabi, Johannesburg, Luxemburg, Hungary, Singapore,
Taipei, Macau, Hong Kong and Sydney in supporting Belt and Road related projects in the respective country.
Bank of China’s involvement in the “Belt and Road” Initiatives
BOC’s New Zealand branch officially open in
Auckland on 21st November 2014 with
NZD50mil capital injection
BOC NZ is in the process of applying for a
dual licence (i.e. subsidiary and branch)
Capital injection of an additional NZD210
million making the Bank’s total capital of
NZD260 mil
About Bank of China (New Zealand) Limited
Official opening of BOC NZ as witnessed by President Xi
Jinping and Ex-PM John Key and BOC Chairman Tian
Guoli

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Belt and Road Initiative
In supporting the Belt and Road initiatives, Bank of China New Zealand has become an important window in
facilitating exchanges of people and enterprises between China and countries along the way.
Bank of China envisions a world that builds mutually beneficial relationship that meets the interests of all.
BOC Seminar arranged for eight Pacific Island Countries
Fiji Papua New
Guinea
Samoa Tonga Vanuatu Niue Cook Island Micronesia
Part 4 – Bank of China’s involvement in “Belt and Road” Initiatives
• Conducted a total of 11 Lectures/Classes
• 10 Site Visit to amongst other Modern Agriculture Garden, Port, Financial Institutions, Aircraft Manufacturer and
several cultural sites in both Beijing and Shanghai
• A total of 43 participants ranging from Minister level, Central Bank’s Governor, Senior official and large corporate
attended the seminar

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Site Visit to COMAC’s C919 Factory
Official Opening Ceremony at BOC Head Office in Beijing
Classes/Lectures
Opening Ceremony of the “Belt and Road” International Finance Exchange & Cooperation Seminar (Pacific Island Countries)
Part 4 – Bank of China’s involvement in “Belt and Road” Initiatives

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Part 4 – Bank of China’s involvement in “Belt and Road” Initiatives
2. BOC New Zealand Agriculture Conference held on May
2016
1. BOC New Zealand Cross-Border E-Commerce
Business Conference held on November 2015
4. BOC NZ lead a delegation of NZ Companies to Henan,
China on March 2017
3. BOC NZ lead a delegation of NZ Companies to Guizhou,
China on October 2016

18. ALWAYS WITH YOU
KEEPING IN TOUCH
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