State-Fueled Energy: Quantitative Comparison of State-Led Overseas Energy Financing in China and Japan
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China and Japan own the largest policy banks—state-owned financiers—in the world. Policy banks have recently drawn international attention as the Export–Import Bank of China (CHEXIM) and China Development Bank (CDB) play an important role in China’s overseas economic activities. This paper examines the extent to which the CHEXIM and CDB behave similarly to the Japan Bank for International Cooperation (JBIC), their Japanese counterpart in energy loan approvals. Combining third-party data from a new database of Chinese overseas energy finance and various matching databases, this paper proposes a fixed-effect model to compare the determinants of the CHEXIM, CDB and JBIC’s overseas energy loans from a comparative perspective. Like their Japanese counterparts, Chinese banks exhibit a certain degree of concern for the recipient’s domestic economy but also exhibit risk-seeking tendencies. Contrary to claims that China’s policy bank is a tool to gain geopolitical advantage, geopolitical concerns and energy security do not appear to be determinants of the CHEXIM’s overseas finance decisions.
KeywordsChina State-led finance Energy Japan Overseas finance Loan
Compliance with Ethical Standards
Conflict of interest
All the authors declare that they have no conflict of interest.
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