 | |
Native name | 中国进出口银行 |
|---|---|
| Company type | Public |
| Industry | Banking |
| Founded | 1994; 31 years ago (1994) |
| Headquarters | Beijing,China |
Key people | |
| Products | Financial services |
| Website | www |
| The Export–Import Bank of China | |||||||
|---|---|---|---|---|---|---|---|
| Simplified Chinese | 中国进出口银行 | ||||||
| Traditional Chinese | 中國進出口銀行 | ||||||
| |||||||
The Export–Import Bank of China (中国进出口银行;Exim Bank) is apolicy bank of China under theState Council. Established in 1994, the bank was chartered to implement the state policies inindustry,foreign trade,economy, andforeign aid to other developing countries, and provide policy financial support so as to promote the export of Chinese products and services.[1]
The bank is a policy bank and along with other Chinese policy institutions likeChina Development Bank andSinosure implement theeconomic policies of the government. The focus of the bank is facilitate Chinese companies' exports.[2]: 74 Commercial lending forms the backbone of the bank. Commercial activity includesexport credits mainly in theinfrastructure fields (roads, power plants, oil and gas pipelines,telecom, and water projects) and investment loans for Chinese businesses to establish overseas in the energy, mining and industrial sectors.[3] Another function is to administerconcessional loans which are no interest or very low interest loans provided as foreign aid by the Chinese government. Exim is the sole provider of Chinese governmentconcessional loans.[3]
Exim Bank does not publish figures for overseas loans. However, U.S. officials estimate that it finances more than the total export financing of theGroup of Seven industrialized nations combined.[4]TheFinancial Times estimates that in 2009 and 2010, Exim Bank andChina Development Bank (CDB) together signed loans of at least $110 billion to other developing country governments and companies, more than theWorld Bank over a similar period.[5]
In 2014, CIC contributed some of the initial capital for theSilk Road Fund.[6]: 221 Along the CDB and the Silk Road Fund, Exim Bank is one of the primary financing sources forBelt and Road Initiative (BRI) development projects in Africa.[7]: 245
Rival export financing institutions that have seen a decline in influence, such as theU.S. Export–Import Bank through ChairmanFred Hochberg, have complained that Exim Bank doesn't follow the export financing guidelines promulgated by theOECD and so has an unfair advantage.[4]
Exim Bank was established in 1994.[6]: 209
Exim Bank implemented abond auction in 1999.[2]: 36
In 2015, China used itsforeign exchange reserves to recapitalize Exim Bank, which in turn empowered it to make significant foreign loans.[8]: 70
Exim Bank is entirelystate-owned.[2]: 85 As of 2019, its majority owner is Buttonwood Investment Holding Company Ltd. (which is in turn owned by theState Administration of Foreign Exchange) and theMinistry of Finance is a minority owner.[2]: 85
The bank is a part of theChinese foreign aid system and administers the Two Preferential Loan Program (两优贷款业务;liangyou).[2]: 74 The concessional loan (优惠贷款) and preferential buyer's credit (优惠买方信贷) are the two main loan products under the preferential loan program.[9] Exim Bank's Sovereign Business Loan Department manages these loans.[2]: 74 These two types of loans are a major part of the financing support for the BRI.[10]
For concessional loans the bank advances a no interest or very low interest rate loan to a developing country government or agency to build a project (e.g. power plant, road, water treatment facility). The term of the concession loan is up to 20 years and a maximumgrace period of 7 years is given. The preferential export buyer's credit is provided to a foreign borrower to purchase Chinese goods or services (e.g.construction contractor building the project). Concessional loans are a form of foreign aid and subsidized by the Chinese government revenues.[2]: 74 They are denominated inrenminbi.[2]: 74
Preferential buyers' credits are denominated in U.S. dollars.[2]: 74 Although their conditions are concessional, they are not subsidized by tax revenues.[2]: 74 The preferential export buyer's credit is generally classified as a commercial loan rather than foreign aid even if the interest rate is very low because the purpose is to promote Chinese exports.[11]
During theCOVID pandemic, the bank granted the government ofAngola an undisclosed amount of debt relief.[12]
In 2022, the bank signed an agreement with Hong Kong realtor groupESR Group and to invest inASEAN infrastructure projects.[13]
In 2023, the Exim Bank has agreed to support Sri Lanka'sdebt restructuring efforts. The news follow's India's promise to also support Sri Lanka through the debt restructuring program.[14][15][16]
The bank has provided more than $1 billion in loans to theMaldives for upgrading infrastructure, including upgrading an airport, bridge construction, and relocating the country's port.[17]: 112
Beginning in the early 2000s, the Sri Lankan government sought to obtain funding from international creditors to develop Hambantota.[2] The Sri Lankan government sought funding for theHambantota Port project form both the United States and India, which both declined.[2]: 93
After India declined to fund development of the port, Sri Lanka next sought funding from China.[18] In July 2006, Sri Lankan foreign ministerMangala Samaraweera met in China with Exim Bank presidentLi Ruogu.[2]: 93 After this visit, Sri Lanka and China agreed that both countries would encourage Chinese companies to participate in the port project and encourage the use of concessional loans from China to finance the project.[19][2]: 93 Sri Lankan President Rajapaksa visited China in February 2007 and the visit resulted in China's decision to fund the port development.[2]: 93–94
In 2023, Exim Bank provided Sri Lanka with an extension on Sri Lankan debt due in 2022 and 2023.[2]: 137
There are a total of 21 branches of the bank, inAnhui,Beijing,Chengdu,Chongqing,Dalian,Fujian,Guangdong,Heilongjiang,Hubei,Hunan,Jiangsu,Nanjing,Ningbo,Qingdao,Shanghai,Shanxi,Shenzhen,Tianjin,Xiamen,Xi'an,Xinjiang,Yunnan, andZhejiang.[20]
Exim Bank has a twelve-member board of directors.[2]: 85 Two are the executives in charge of managing Exim Bank.[2]: 85 Six are directors from the agencies that hold shares of Exim Bank.[2]: 85 The four "government-ministry directors" come from theNational Development and Reform Commission, theMinistry of Finance, theMinistry of Commerce, and theState Administration of Foreign Exchange.[2]: 85
| Name (English) | Name (Chinese) | Tenure begins | Tenure ends | Note |
|---|---|---|---|---|
| Tong Zhiguang | 佟志广 | 1994 | 1998 | [2]: 83 |
| Zhou Keren [zh] | 周可仁 | 1998 | 1999 | [2]: 83 |
| Yang Zilin [zh] | 羊子林 | 1999 | 2005 | [2]: 83 |
| Li Ruogu | 李若谷 | 2005 | 2015 | [2]: 83 |
| Hu Xiaolin | 胡晓炼 | 2015 | 2022 | [2]: 83 |
| Wu Fulin | 吴富林 | June 2022 | [2]: 83 [21] |
| Name (English) | Name (Chinese) | Tenure begins | Tenure ends | Note |
|---|---|---|---|---|
| Ren Shengjun [zh] | 任生俊 | August 2022 | August 2024 | |
| Wang Chunying | 王春英 | 21 October 2024 | [22] |
The first major loan it took on the project came from the Chinese government's Export-Import Bank, or Exim, for $307 million. But to obtain the loan, Sri Lanka was required to accept Beijing's preferred company, China Harbor, as the port's builder, according to a United States Embassy cable from the time, leaked to WikiLeaks.
| Central bank | |
|---|---|
| Policy bank | |
| State Council commercial | |
| Nationwide commercial | |
| Urban commercial | |
| Regulatory agency | |
