MIGA and China Sign New Agreement: Ties to support Chinese investment abroad

MIGA and China Sign New Agreement: Ties to support Chinese investment abroad

Beijing, November 17, 2000 —The Multilateral Investment Guarantee Agency (MIGA), a private-sector arm of the World Bank Group, and the Peoples Insurance Company of China (PICC), China's national export credit and investment insurance agency, today signed an agreement to jointly promote foreign direct investment from China into other developing countries.

The groups signed a Memorandum of Understanding at World Bank offices in Beijing, saying they will work together to support Chinese investors. The agreement, the first between the two organizations and the agency's 13th such arrangement, also highlights a willingness to cooperate in areas such as technical assistance and training.

"Chinese investors are looking for business opportunities abroad, and we're ready to do our part to encourage that investment, especially into developing countries," said MIGA's Executive Vice President, Motomichi Ikawa. "This agreement will allow us to reach a larger group of Chinese investors and provide them access to a strong risk mitigation product."

Signing on behalf of PICC was Liang Zhidong, General Manager of the Export Credit Insurance Department, who said: "We are very happy to join forces with MIGA to not only encourage Chinese businesses to invest in emerging economies, but to also be a part of providing them with a solid tool to protect those investments abroad."

China joined MIGA in 1991 and is currently host to a number of foreign investments, ranging from infrastructure to manufacturing. Guarantees for these investments account for $113 million in guarantees, or 21 percent of the agency's portfolio in the region.

MIGA, currently in China to raise its profile among the Chinese investment community, co-hosted a conference with the Ministry of Finance and PICC in Beijing: Seminar on Overseas Investment Guarantee and South-South Cooperation. The event was attended by some 70 participants from the insurance and banking industries, as well as Chinese enterprises currently looking at investment opportunities abroad.

For information

Alpona Banerji,
abanerji1@worldbank.org, t. 202-473-7153 (in USA)
Gang Wang,
gwang@ifc.org, t. 8610-6554-4191 (in China)
Angela Gentile,
agentile@worldbank.org, t. 202-473-3509 (in USA)