China should encourage enterprises to take an active role in participating in overseas energy projects that focus on the Belt and Road Initiative, according to an industrial report by a think tank under Chinese state-owned energy conglomerate China Energy Engineering Group.
The Annual Report on China’s Energy Development 2016, compiled by the Electric Power Planning & Engineering Institute, suggested that Chinese government should come up with financial policies to promote energy cooperation under the Belt and Road Initiative, and encourage financial institutions to get deeply involved in the projects.
The report also suggested that Chinese government should issue guidelines for insurance institutions to offer insurance products designed to hedge against risks associated with doing business in countries under the Belt and Road Initiative, and increase the support of export-credit insurance, overseas investment insurance and reinsurance for Chinese energy enterprises.
Currently, there is a sound foundation for energy cooperation between China and the Belt and Road markets.
In 2016, the energy projects under the China-Pakistan Economic Corridor had started, the Yanbu Refinery of Saudi Aramco and Sinopec went into operation, and construction on the China-Russia Yamal LNG project had been proceeding well.