Name: Hu Biliang, Dean, The Belt and Road Research Institute, Beijing Normal University

Title: Enhancing Policy Communication and Coordination - Based on Recent Research in Central Asian Countries

 Abstract:

Chinese President Xi Jinping has called for enhancing policy coordination while implementing the Belt and Road Initiative. I just concluded a survey on the building of the Belt and Road in Central Asia’s Kazakhstan and Kyrgyzstan and West Asia’s Georgia, and now I would like to share some ideas with you.

First, economies in the three countries all make a turnaround in 2016 after a sluggish 2015.

Second, investment opportunities are presented in the three countries. Kazakhstan has shifted its investment focus from natural resource exploration, particularly oil and gas and mineral resource exploration, to infrastructure building and industrial development, and both Kyrgyzstan and Georgia are trying to channel investments to transportation infrastructure construction and tourism.

Third, policy coordination between China and the three countries will directly promote their economic cooperation and regional prosperity. The following aspects shall be given more attention:

1. Strengthening coordination in financial and monetary policies. We could encourage the three countries to issue Panda Bonds in China and obtain funds. China could provide them capital through the European Bank for Reconstruction and Development. Qualified enterprises in Central Asia could be listed and financed on a special securities market established by China. We could also pioneer a financially stable region based on the RMB within the framework of the Belt and Road Initiative.

2. Enhancing coordination in investment policy, including offering each other industrial cooperation opportunities and favorable policies.

3. Improving coordination in trade policy, such as advancing bilateral or multilateral negotiations on free trade zones and boosting trade facilitation.

4. Reinforcing coordination in industrial policy which will cover sectors like agriculture, manufacturing, and mineral resources, and promoting their coordinated development based on complementarities.

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