Table 1

Two modalities of Chinese transnational state-owned investment

Primary rationale for transnational expansionBest practiceState organisational formGeographies
Institutional investment in global financial marketsSurplus national savings; ROI in global capital marketsFinancial intermediary identifies assets based on ROI metrics and via their centrality in global capital networks; independence of operational decision-makingState-owned financial intermediaries (SWFs, government-guided funds, SOE portfolio investment departments, state-owned investment banks)Developed capital markets
Bank-based debt-financed public infrastructure projectsStrategic coupling to global supply chains, enhanced Chinese labour mobility; new market creation for production and consumption of Chinese goods and servicesDispersed yet collective intervention by relevant state institutions in China and investor states; ministries, agencies and SOEs play a coordinative function, identifying markets, creating projects (assets), securing funds and contractors, and implement projects in line with the BRI; EPC+F contracting modelThe state-coordinated complex (National Development and Reform Commission, MOFCOM, Ministry of Finance, Ministry of Foreign Affairs, policy banks, construction SOEs (CCCC, China Railway International, China Machinery Engineering Company) in China and investor states)Emerging economies, BRI countries, e.g. the Western Balkans
Primary rationale for transnational expansionBest practiceState organisational formGeographies
Institutional investment in global financial marketsSurplus national savings; ROI in global capital marketsFinancial intermediary identifies assets based on ROI metrics and via their centrality in global capital networks; independence of operational decision-makingState-owned financial intermediaries (SWFs, government-guided funds, SOE portfolio investment departments, state-owned investment banks)Developed capital markets
Bank-based debt-financed public infrastructure projectsStrategic coupling to global supply chains, enhanced Chinese labour mobility; new market creation for production and consumption of Chinese goods and servicesDispersed yet collective intervention by relevant state institutions in China and investor states; ministries, agencies and SOEs play a coordinative function, identifying markets, creating projects (assets), securing funds and contractors, and implement projects in line with the BRI; EPC+F contracting modelThe state-coordinated complex (National Development and Reform Commission, MOFCOM, Ministry of Finance, Ministry of Foreign Affairs, policy banks, construction SOEs (CCCC, China Railway International, China Machinery Engineering Company) in China and investor states)Emerging economies, BRI countries, e.g. the Western Balkans

Source: Author’s own formulation.

Table 1

Two modalities of Chinese transnational state-owned investment

Primary rationale for transnational expansionBest practiceState organisational formGeographies
Institutional investment in global financial marketsSurplus national savings; ROI in global capital marketsFinancial intermediary identifies assets based on ROI metrics and via their centrality in global capital networks; independence of operational decision-makingState-owned financial intermediaries (SWFs, government-guided funds, SOE portfolio investment departments, state-owned investment banks)Developed capital markets
Bank-based debt-financed public infrastructure projectsStrategic coupling to global supply chains, enhanced Chinese labour mobility; new market creation for production and consumption of Chinese goods and servicesDispersed yet collective intervention by relevant state institutions in China and investor states; ministries, agencies and SOEs play a coordinative function, identifying markets, creating projects (assets), securing funds and contractors, and implement projects in line with the BRI; EPC+F contracting modelThe state-coordinated complex (National Development and Reform Commission, MOFCOM, Ministry of Finance, Ministry of Foreign Affairs, policy banks, construction SOEs (CCCC, China Railway International, China Machinery Engineering Company) in China and investor states)Emerging economies, BRI countries, e.g. the Western Balkans
Primary rationale for transnational expansionBest practiceState organisational formGeographies
Institutional investment in global financial marketsSurplus national savings; ROI in global capital marketsFinancial intermediary identifies assets based on ROI metrics and via their centrality in global capital networks; independence of operational decision-makingState-owned financial intermediaries (SWFs, government-guided funds, SOE portfolio investment departments, state-owned investment banks)Developed capital markets
Bank-based debt-financed public infrastructure projectsStrategic coupling to global supply chains, enhanced Chinese labour mobility; new market creation for production and consumption of Chinese goods and servicesDispersed yet collective intervention by relevant state institutions in China and investor states; ministries, agencies and SOEs play a coordinative function, identifying markets, creating projects (assets), securing funds and contractors, and implement projects in line with the BRI; EPC+F contracting modelThe state-coordinated complex (National Development and Reform Commission, MOFCOM, Ministry of Finance, Ministry of Foreign Affairs, policy banks, construction SOEs (CCCC, China Railway International, China Machinery Engineering Company) in China and investor states)Emerging economies, BRI countries, e.g. the Western Balkans

Source: Author’s own formulation.

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