East to West to East: Journey of a US Trained Chinese Financier

China had also concluded a co-operation document with Uzbekistan on the building of the Silk Road Economic Belt.

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This was aimed at further deepening and expanding mutually beneficial co-operation in such areas as trade, investment, finance, transport and communication. Currently, the countries along the Greater Mekong River are engaged in building nine cross-national highways, connecting east and west and linking north to south. A number of these construction projects have already been completed. Guangxi, for example, has already finished work on an expressway leading to the Friendship Gate and the port of Dongxing at the China-Vietnam border.

The province has also opened an international rail line, running from Nanning to Hanoi, as well as introducing air routes to several major Southeast Asian cities. At present, the two governments have mapped out a provisional long-term plan for building highways, railways, oil and natural gas pipelines and optic fibre networks stretching from Kashgar to Gwadar Port.

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According to a joint declaration issued by China and Pakistan in Islamabad in April , the two countries will proactively advance key co-operation projects, including Phase II of the upgrade and renovation of the Karakoram Highway the Thakot-Havelian section , an expressway at the east bay of Gwadar Port, a new international airport, an expressway from Karachi to Lahore the Multan-Sukkur section , the Lahore rail transport orange line, the Haier-Ruba economic zone, and the China-Pakistan cross-national optic fibre network.

Official representatives from the four countries conducted in-depth discussions with regard to the development prospects, priority areas of co-operation and co-operation mechanisms for the economic corridor. They also reached extensive consensus on co-operation in such areas as transportation infrastructure, investment and commercial circulation, and people-to-people connectivity.

The four parties signed meeting minutes and agreed the Bangladesh-China-India-Myanmar Economic Corridor joint study programme, establishing a mechanism for promoting co-operation among the four governments. The five major goals of the Belt and Road Initiative are: In terms of specifics, policy co-ordination means that countries along the belt and road will, via consultation on an equal footing, jointly formulate development plans and measures for advancing cross-national or regional co-operation; resolve problems arising from co-operation through consultation; and jointly provide policy support to practical co-operation and large-scale project implementation.

Facilities connectivity refers to prioritising areas of construction as part of the Belt and Road strategy. Efforts will be made to give priority to removing barriers in the missing sections and bottleneck areas of core international transportation passages, advancing the construction of port infrastructure facilities, and clearing land-water intermodal transport passages.

The connectivity of infrastructure facilities, including railways, highways, air routes, telecommunications, oil and natural gas pipelines and ports, will also be promoted. And although many MNCs have yet to reap benefits, some have. Take ABB, for example. Caterpillar says it regards BRI as a long-term opportunity. We believe phase 2 will bring greater global resonance, and that MNCs that position themselves strategically now stand a good chance of benefiting. As it builds credibility and experience, and enjoys the backing of China and dozens of other governments, it should have little trouble raising funds on global capital markets.

This internationalisation of the AIIB should also increase the sensitivity of sponsoring governments, not least China, to perceptions of political influence in BRI. In short, BRI is benefiting from initiatives that have increased the amount of financing, its sourcing including from developed nations such as the United Kingdom and Germany as well as the cofunding of projects between, say, the AIIB and other multilateral organisations. While that might seem a low-value distinction, it informs an important difference: That will not hold up if MNCs can participate in only a showcase fashion.

There are other pointers too. Firstly, more funding will come from outside China, including from monetary financial institutions MFIs such as the World Bank and the ADB; this will bring with it increased transparency as well as rules with which MNCs are more familiar. Secondly, the AIIB recently brought its decisionmaking more in line with that of the World Bank and the ADB, and said it would take account of issues such as the environment; this should have a similar effect given that MNCs have more experience in meeting such requirements.

And thirdly, richer countries are benefiting from BRI, and are better able to ensure that projects are of the highest standard, and that the companies carrying out such work are the best available. Again, that ought to benefit non-Chinese MNCs. BRI has the potential to reshape the countries it touches as well as the companies involved.

Before that happens, though, clients need to understand how to access BRI-linked developments. BRI projects provide a range of stakeholders with which clients could consider partnering: Some are easier to connect with than others. Our experience shows foreign clients will likely find the quickest method is through an alliance with an SOE or via a professional services firm. When it comes to making contact with SOEs, our research shows reaching out is easier than many realise.

In addition, most SOEs know they fall short in areas such as operations, technology, human resources and finance.

MNCs that can show solutions ought to be in a strong position figure Professional services firms can help navigate local regulations such as tax and labor requirements, as well as contracts and insurance, and can manage the various types of risk through due diligence. They can also assist in ensuring that projects meet corporate social responsibility CSR requirements. The second step includes buying risk and accident insurance. Also vital is a written plan that incorporates different solutions according to experience. At the same time, MNCs enjoy a competitive advantage in five areas.

Some observers reckon half of all BRI funding by will be met by a combination of private capital, multilateral banks and foreign governments.

That will offer opportunities to MNCs with expertise in raising funds for large projects. The availability of China-sourced funding has meant Chinese companies have focused on debt financing and, in some cases, PE financing. Increasingly, we see Chinese firms involved in BRI looking to reduce their interest risk, exchange risk and the financing interest associated with long-term loans. This is particularly true for companies operating in countries regarded as high risk, as this brings higher costs and greater uncertainty over aspects such as exchange controls and remittances.

The third trend will be local banks in BRI countries providing debt financing. This is attractive for a number of reasons, not least in minimising exchange risk and helping to localise the financing of BRI projects. MNCs can leverage this, either by partnering to provide technology or by being acquired. Some MNCs have greater expertise in managing infrastructure, real estate and joint ventures, as well as experience in running operations in a range of countries.

GE, for example, is on the ground in nearly every BRI country, giving it valuable local knowledge. Others include improving long-term strategy and better controlling risk. MNCs can cooperate with Chinese companies in areas that encompass two or more segments. An MNC might provide quality products as well as the related technology and management skills needed to run them.

Our experience with BRI projects over the years has allowed us to develop three key insights and predictions, all of which have appeared in this report in some form.

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Firstly, BRI is much more than a Chinese-funded infrastructure project. Linked to this, many projects are underpinned by strong bilateral relationships between China and the countries concerned, which makes these investments more secure than outsiders might imagine. And while most participants are developing countries, it is also true that developed nations are increasingly involved.

• The Belt and Road Initiative.
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And although many projects involve higher risks than conventional investments, it is important to keep those risks in perspective and deal with them dynamically. Thirdly, BRI is a collaborative ecosystem that to date has focused on energy and infrastructure, but that over the next five years and beyond will evolve to concentrate on trade, manufacturing, the Internet, tourism and other aspects.

It sees this initiative as comprising a different interpretation of globalisation, one that is about optimising returns, not about maximising them in solely financial or commercial terms. This is encapsulated in the principle underpinning BRI: Trading Economics, "China foreign exchange reserves," accessed February 2, Interview with Si Tao Xu, Deloitte. Belt and Road initiative creates new opportunities for Sino-Swiss business cooperation," press release, May 13, Simply select text and choose how to share it:.

The Belt and Road Initiative | Deloitte Insights

Embracing the BRI ecosystem in has been added to your bookmarks. Embracing the BRI ecosystem in has been removed from your bookmarks. An article titled Embracing the BRI ecosystem in already exists in the bookmark library. East to West to East is both a memoir of Randolph Kwei, but also an interesting look at opportunity, culture, and investment banking.

It is an especially timely story with the potential beginning of new conflict between China and the U.

• Song Of The Succubus.
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Kwei was born in China, educated in the U. Kwei started his life in Shanghai under Japanese occupation, and his family escaped to Hong Kong, and than as a year-old, moved to America to continue his education.

East to West to East: Journey of a US Trained Chinese Financier (Kindle)

Graduate of both Yale and Columbia Business School, he worked in IT, banking and investments, working at top tier firms before venturing out on his own. Kwei tells his story with honesty, humor, and a constant sense of optimism. Along the way, the reader learns about banking and investing, probably providing a primer for those interested in pursuing a career in either.