Germany’s Commerzbank and the Industrial and Commercial Bank of China (ICBC) signed a Memorandum of Understanding (MOU) to support projects linked to the Belt and Road Initiative (BRI).
China’s Belt and Road Initiative seeks to expand maritime routes and land infrastructure networks connecting China with Asia, Africa and Europe to promote trade by connecting and promoting economic cooperation across these continents. Commerzbank wants to support Belt and Road related projects with a business volume of USD 5bn in the following five years.
Nick Johnston, Regional Board Member Asia of Commerzbank AG commented on the occasion:
We are delighted to partner with ICBC to further support projects along the Belt and Road route. Through this framework we are building on our international reach in more than 50 countries offering more flexible funding, investment and risk management opportunities for our clients across the Belt and Road route.
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In fact, in 2017 China topped Germany’s foreign trade rankings with total trading value of EUR 186.6bn, highlighting the importance of China for Europe’s largest economy.
BRI continues to create new trade and investment links between China and countries along the route. Commerzbank economists expect Foreign Direct Investment from China to BRI countries to have doubled to USD25 bn by 2020.
The Maritime Silk Road (MSR) links China’s southern coast to east Africa and the Mediterranean via the sea. The international freight rail routes linking China’s Chongqing and Germany’s Duisburg or Zhengzhou, a major transportation hub for Central China to Hamburg, home to one of the largest harbours in Europe are examples of the Belt Road Initiative.