MODERN PROJECT FINANCING IN CHINA

Modern Project Financing in China

Modern Project Financing in China

Current situation of project financing in China

China is recognized as one of the most promising places of business in the 21 century. In recent years, a growing number of companies, both large international and small, opens its offices or representative offices in China to take advantage of the huge market and lower cost of production. Chinese authorities at national, provincial and local level are making efforts to improve the business environment in China and promote the successful operation of foreign investors in China. (Jung-Dong 1997, 34)

One of the most important and difficult to close a deal in China is to obtain the necessary financing. Companies must be able to offer different financing options when negotiating projects in China. We can not overemphasize the fact that a foreign company should include the views of Western financial, as well as the Chinese representative, and adapt its communications accordingly. (David 2005, 16)

Active, rational and effective use of foreign investment, promote the optimization of economic structure and improve the quality of the national economy, and actively guide foreign investment mainly for agriculture, infrastructure, basic industries and the technological transformation of existing enterprises, to invest in capital-and technology-intensive and high value-added export-oriented project, step by step implementation of the opening trade in services, this is our guide foreign investment, optimize foreign Chanyejiegou goals. Thus encouraging foreign participation using BOT project financing of the public infrastructure construction, which is the norm in our BOT project financing in the general guiding principle running. (Cara 2010, 14)

Reform and opening up to China's economic development onto a high-speed trains. Especially after Deng Xiaoping's speech in 1992, the South, our modernization and the use of foreign capital have entered a new stage of development. Sustained, rapid and healthy economic development, social progress, people Shenghuoshuiping significantly increased, the demand increases. Although we rely on their own strength, increased infrastructure and basic industries investment, easing the constraints of rapid economic growth, we are the "bottleneck", but can not meet the needs of sustainable development. And therefore the use of foreign investment in BOT project financing cooperation, seeks long-term stability in our market outlook.

The socialist market economy, China has established laws and regulations present excellence, particularly with regard to foreign investment laws and regulations has taken shape system, the establishment of enterprises with foreign investment, change, management, termination, disputes and land use rights acquisition and other laws basically sound, the fundamental guarantee for investors, according to availability. China recently promulgated the "security law", "Insurance Law", "General Rules on Loans", RMB current account convertibility and so on, which is the construction of BOT and project finance, management, operations and other risk-sharing provided a sound legal environment. (Chen 2000, 1-15)

Development of China's Project Financing in Recent Years and Projects

Since the opening-up policy initiated in 1978 by Deng Xiao Ping in the framework of "socialist market economy, China's average growth was 9% on GDP in third place worldwide in ...