Foreign
The future of New Development Bank’s contribution to BRI and green finance initiatives
Dilma Vana Rousseff
The New Development Bank (NDB) is a product of the further maturation of the BRICS cooperation mechanism: the initiative to set up a multilateral development bank was first put forward at the fourth BRICS leaders summit in New Delhi in India in 2012, and consensus was reached on at the sixth BRICS summit in Fortaleza, Brazil 2014.
At both meetings, I was president of Brazil. Under the theme “Sustainable solutions for inclusive growth,” the five BRICS countries announced the signing of the agreement on the New Development Bank in Brazil in 2014. In 2015, the BRICS’s NDB was formally established, focusing on the two major areas of “infrastructure development” and “sustainable development projects.” The central idea is that the NDB shall mobilize resources for infrastructure and sustainable development projects in the NDB member countries, in complement of existing multilateral and regional development financial institutions.
Based on our strategy, sustainable infrastructure development is at the core of the Bank’s financing methodology, with about two-thirds of its lending going to projects in this area. Such projects effectively and strategically mobilize financial, and more importantly, social resources for sustainable infrastructure development of emerging markets and developing countries (EMDCs), in the fields of green recovery and inclusive economic growth. In addition, taking into account the specific period of history that we are in, post-COVID-19 recovery and climate change are by nature also at the core of the Bank’s vision. Furthermore, the Bank’s concept of development is based on the understanding that always must be sustainable and inclusive.
It is, also, highly-relevant to mention that, the NDB strategy is grounded on the understanding of challenges faced by globalization in recent years. Various crises have been shaking the process of globalization. The future of political globalization is at stake, and global economic relations are being reshaped. Rules and practices of international trade and finance are being fundamentally rewritten and transformed in ways history has never seen. Linkage in science and technology between Asia, North America, Latin America, Africa and Europe, which has been strengthening over the past three decades, is also going through a dramatic process of reshaping. Such changes impose grave risks on the world’s stability and prosperity. If not managed efficiently and sufficiently, such risks may well be both reasons and results of global political polarization. As a result, the world economy will be disintegrated into blocs. The world economy is threatened by all kinds of protectionism currently and maybe in the coming years. The objective of economic protectionism is economic hegemony, and it also means to suppress and contain the emerging economies. For these economies, this will lead to reduction of political space for their activities and the shrinking of margin for growth.
In reality, the threat of unilateralism and protectionism is posing many challenges to developing countries. The weaponization of sanctions and the “long arm of jurisdiction” do not solve any problems, but only create more difficulties and inequalities of opportunity for economic growth and social development, affecting the growth prospects of the world economy.
In that context, as an important participant in the new international financial architecture, the NDB is committed to prioritizing the use of local currencies for financing, while at the same time mobilizing funds in a wide range of currencies and markets.
The NDB also is dedicated to devising solutions, to address the mismatch between project cash flows and the needs of sustainable infrastructures in EMDCs and the NDB is aiming at financing in a targeted and customized manner, helping the emerging economies not only to gain economic growth, but most importantly, to achieve economic inclusiveness.
In order to counterplay and mitigate the weakening of globalization, the NDB and Belt and Road Initiative (BRI) join forces to create, develop and strengthen regional markets in EMDCs, to support and foster multilateral cooperations.
Within this scenario, the proposition of the BRI is an excellent example of aligning infrastructure projects with economic growth and social inclusion. The essential linkage between the NDB policies and the BRI is that the NDB not only provides financing and overcomes market failure, but also promotes technological progress and innovation demonstration. Both the NDB and the BRI through its projects have strengthened infrastructure in partner countries, helping them pursue their development goals and bolster their industry, value, and supply chains.
When we understand the BRI in its essence we realize that the BRI is not only about building roads, railways, ports, dams and other infrastructure facilities, but rather a major global opening up initiative that creates a new international cooperation platform. On the one hand, the BRI has helped build hundreds of industrial parks around the world and also facilitated the development of e-commerce through the digital silk road in different regions and countries, and promotes green development. On the other hand, the BRI is helping a large part of the global economy to shift to the green development path. The BRI focuses on planning and building large-scale infrastructure development projects; improving connectivity: facilitating cross-border trade and investment in different regions of the world; boosting cooperation among economies and increasing people-to-people exchange.
As we know, infrastructure financing is characterized by large up-front investment, long construction period, high political sensitivity, high professionalism, etc., which is risky, and privately financed infrastructure projects are prone to insufficient funds and face the dilemma of “market failure.” In addition, sustainable infrastructure financing also faces special risks and obstacles, including political and institutional factors, economic factors, market environment factors and project-level factors, etc. The provision of preferential funding by the NDB is conducive to overcoming market failure and obstacles to sustainable infrastructure financing, it therefore plays a leveraging role in attracting social capital into the fields of sustainable infrastructure investment and financing. I believe the NDB and the BRI share the same vision in this sense.
In essence, sustainable infrastructure construction and development require the promotion of technological progress and innovation demonstration. At present, the technological level of sustainable infrastructure in countries along the Belt and Road is relatively moderate and, they are striving to foster innovation as one of the core elements of the initiative. At the same time, the investment uncertainty and risk of technological obsolescence associated with technological innovation also make countries along the Belt and Road face a larger financing gap in this area than in general infrastructure. The degree of development and utilization of new technologies is an important criterion for the NDB to select sustainable infrastructure projects. Multilateral development banks take into great consideration the political and economic influence of multilateral sovereign governments, to promote demonstration projects for technological innovation in order to leverage investment in innovation.
Based on these settings, the NDB is entering a new momentum by welcoming new members such as Bangladesh, the UAE, Egypt and other members that are part of the BRI that may join. As the name “New Development Bank” suggests, the NDB, with its innovative mission and business model, has become an active force in promoting South-South cooperation and it is already a vital instrument that promotes new initiatives such as the BRI. Nearly 100 projects have been implemented by the NDB in a total investment of $32.8 billion. These successful investments in infrastructure projects have contributed to the rapid development of green finance in countries that are important nodes of the Belt and Road strategy.
Finally, the NDB are working hand in hand with several Belt and Road countries to contribute to a more inclusive and innovative global development.
Dilma Vana Rousseff is the president of the New Development Bank.
Foreign
Japan must face consequences for dangerous provocations on Taiwan question
By Zhong Sheng, People’s Daily
Japanese Prime Minister Sanae Takaichi recently made public remarks suggesting the possibility of military intervention in the Taiwan Strait, grossly interfering in China’s internal affairs. Despite repeated representations from China, she has refused to repent for her blatant and provocative rhetoric, which represents a blatant violation of the one-China principle and the guiding principles set forth in the four China-Japan political documents. Her actions have gravely undermined the political foundation of China-Japan relations and severely offended the sentiments of the Chinese people.
Assertions by a handful of Japanese politicians that China is “overreacting” to Takaichi’s erroneous comments are a misrepresentation of facts and a deliberate attempt to discredit China’s legitimate and reasonable position. The Taiwan question bears directly on the political foundation of mutual trust between China and Japan.
In 1972, the two countries signed the Sino-Japanese Joint Statement and officially established diplomatic relations, which states that the Government of Japan fully understands and respects this stand of the Government of the People’s Republic of China, and it firmly maintains its stand under Article 8 of the Potsdam Proclamation. In 1978, the two countries signed the Treaty of Peace and Friendship Between China and Japan, which affirmed the principles and contents of the joint statement in legal terms and set out the legal parameters for China-Japan relations.
In 1998, the two sides released the China-Japan Joint Declaration on Building a Partnership of Friendship and Cooperation for Peace and Development, in which Japan undertook to “continue to maintain its stand on the Taiwan question which was set forth in the Sino-Japanese Joint Statement” and “reiterated its understanding that there is one China.”
In 2008, the China-Japan Joint Statement on All-round Promotion of Strategic Relationship of Mutual Benefit stipulated clearly in Article 5 that “The Japanese side reiterated that it will continue to abide by its position on the Taiwan question stated in the Sino-Japanese Joint Statement.”
The above is what is laid out in the four political documents between China and Japan regarding the Taiwan question. It constitutes the solemn commitment made by the Japanese government and has a legal effect under international law. There is no room whatsoever for ambiguity or misinterpretation. Whichever political party or person is in power in Japan, they must always abide by the commitment of the Japanese government on the Taiwan question.
Takaichi’s statements fundamentally contravene the guiding principles set forth in these political documents and strike at the foundation of the China-Japan bilateral relationship. As the leader of a country, she should have exercised basic political responsibility and worked with China to promote the sound development of bilateral relations. Instead, shortly after expressing a commitment to the position outlined in the 1972 Sino-Japanese Joint Statement, she irresponsibly claimed that a “Taiwan contingency” could be a “survival-threatening situation” for Japan and implied that Japan may invoke the so-called right to collective self-defense to interfere militarily in the Taiwan Strait.
Such rhetoric is deeply corrosive to the political foundation of China-Japan relations. It reflects provocative strategic intentions and poses a serious threat to peace and stability across the Taiwan Strait and in the region. No sovereign nation can tolerate such flagrant interference in its internal affairs or accept threats of military action from foreign leaders.
Takaichi must take direct responsibility for the political damage her remarks have caused. The only responsible course for the Japanese side is to confront its historical and bilateral obligations with sincerity, cease inflammatory behavior, retract the erroneous statements, and take concrete steps to honor its commitments to China.
A sound and stable China-Japan relationship serves the interests of the Japanese people. Undermining bilateral ties not only runs counter to the prevailing regional and global trends but also lacks public and political support.
In recent days, the extreme and provocative moves of the Takaichi administration have triggered widespread criticism from insightful voices within Japan. Takakage Fujita, secretary-general of the Association for Inheriting and Propagating the Murayama Statement, stated that Takaichi’s remarks violate international law and inflict serious harm on bilateral relations. An editorial in The Tokyo Shimbun criticized her comments as “reckless and careless,” emphasizing that such statements are unacceptable from a sitting prime minister.
Numerous Japanese netizens have bluntly questioned Takaichi’s diplomatic competence, urging her to retract her misguided remarks. Some Japanese people have even organized demonstrations to protest her irresponsible and provocative behavior. Japanese politicians should take these rational voices seriously and refrain from further escalating tensions along a dangerous trajectory.
On matters of fundamental principle, the Chinese people remain unwavering. The Taiwan question lies at the very heart of China’s core interests. Any attempt to challenge this red line will be firmly opposed by the more than 1.4 billion Chinese people and the entire Chinese nation.
This year marks the 80th anniversary of the victory in the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War, as well as the 80th anniversary of Taiwan’s restoration to China.
As a former aggressor that inflicted innumerable atrocities in Taiwan, Japan bears a historical responsibility to reflect deeply on its past and exercise heightened caution in its approach to the Taiwan question. Aligning with forces that seek to divide China runs counter to the prevailing trend of peace and development. Should Japan persist in this course, it will inevitably bear the consequences of its actions.
(Zhong Sheng is a pen name often used by People’s Daily to express its views on foreign policy and international affairs.)
Foreign
Bamboo innovation drives low-carbon development in E China’s Anhui
By Han Lei, People’s Daily
In Chizhou, east China’s Anhui province, bamboo is emerging as a sustainable alternative in daily life. Products traditionally made from plastic, such as straws, ice cream sticks, disposable chopsticks, and cutlery, are increasingly being replaced by bamboo-based alternatives.
At a manufacturing facility in the Chizhou High-Tech Industrial Development Zone, automated production lines produce five million bamboo straws daily. Each year, two billion bamboo straws are exported to more than 40 countries and regions, displacing approximately 6,000 tons of plastic and reducing carbon emissions by 36,000 tons.
“Bamboo straws do not soften in water or break easily, and they are fully renewable and biodegradable,” said Yin Mingliang, the company’s general manager. However, he noted that producing even a simple item like a straw posed significant technical challenges, including issues with mold resistance, heat tolerance, and high production costs.
Initial attempts to resolve these problems through partnerships with three PhD research teams were unsuccessful. A breakthrough came in 2017 when a fourth team, after three years of development, enhanced machinery efficiency to produce 2,000 straws per hour and reduced the unit cost to 0.04 yuan ($0.0056), roughly on par with plastic straws.
The company has also developed an integrated pyrolysis system that converts bamboo wastes into high-value products such as activated carbon and hard-carbon anode materials for sodium-ion batteries. The process captures and reuses steam, enhancing energy efficiency.
Chizhou, home to more than 600,000 mu (40,000 hectares) of bamboo forest, has historically underutilized this natural resource. Recently, the city launched a three-year action plan to promote bamboo as a plastic substitute, extend the industrial value chain, and raise incomes for local farmers.
“Who would have thought that bamboo, once overlooked, could now fetch a good price?” said Shu Rengui, a villager from Languan in Hengdu township of Shitai county, Chizhou, as he harvested bamboo in the morning mist. Shu supplies bamboo to a nearby processing facility and earns around 40,000 yuan annually from the business.
At a bamboo-processing base in Meijie township, Guichi district of Chizhou, two processing plants have been built, capable of handling 35,000 tons of bamboo annually. According to Zhang Yu, the site manager, more than 40 villagers are employed at the base, contributing to local income growth.
Chizhou has developed an integrated industry model linking leading enterprises, circular industrial parks, bamboo-splitting plants, and village cooperatives, establishing a full production chain that spans primary, advanced, and deep processing.
According to an official with the local forestry bureau, Chizhou now has 89 bamboo-processing enterprises with an annual capacity of 900,000 tons. In 2024, the city’s bamboo industry reached an output value of approximately 3 billion yuan, a year-on-year increase of 26 percent, and provided employment for nearly 40,000 rural households, boosting average household incomes by over 20,000 yuan.
The city is also expanding its global footprint. Through platforms such as the Canton Fair, or the China Import and Export Fair, bamboo products from Chizhou, including skewers, chopsticks, and straws, have entered markets in the EU, India, Japan, South Korea, and other countries and regions.
In December 2023, a Chizhou-based company was invited to speak at a side event organized by the International Bamboo and Rattan Organization during the 28th meeting of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change, or COP28, sharing China’s experience in plastics substitution.
Bamboo industry development in Chizhou is accelerating. At the first high-quality bamboo industry development conference for Anhui province in 2024, Chizhou High-Tech Industrial Development Zone signed a framework agreement with CRRC, China’s leading train maker, to establish a national bamboo circular-industry park headquarters in Chizhou. Plans are also underway to develop more than 50 such parks in bamboo-rich regions across the country.
Foreign
China set to advance intelligent, integrated, multi-dimensional transport network by 2030
By Han Xin, People’s Daily
China is accelerating the integration of artificial intelligence (AI) into its transportation sector, aiming to establish an intelligent, integrated, and multi-dimensional national transport network by 2030. A recently issued government guideline outlines 16 targeted tasks across four strategic areas, including technological innovation and scenario-based application, in a bid to enhance mobility, improve safety, and reduce environmental impact.
The guideline emphasizes self-reliance in core technologies and sets out a roadmap to ensure China’s transport infrastructure ranks among the world’s most advanced by the end of the decade. The strategy centers on breakthroughs in applied AI technologies, innovation in intelligent transport products, and the development of large AI models tailored to comprehensive transport systems.
“Strengthening the supply of key technologies is essential to build a full innovation chain from research and development to practical application,” said Wang Yunpeng, an academician of the Chinese Academy of Engineering and president of Beihang University. Wang added that developing large-scale AI models would enable the creation of a “transport brain,” equipped with high-quality datasets, algorithm libraries, and digital toolchains to support intelligent transformation across the sector.
Progress in large transport models is already well underway. The Transport Foundation Model Innovation and Industrial Alliance — launched under the guidance of China’s Ministry of Transport — has brought together more than 50 leading enterprises, AI companies, and universities and research institutes, identifying 860 typical AI application scenarios.
At the enterprise level, China Logistics Group introduced a large model serving over 40 specific scenarios including multimodal transport and warehouse scheduling. A “smart hub” built upon a transport large model developed by Chinese tech firm Baidu has been deployed in over 10 cities, serving over 1 million vehicles equipped with L2 driver-assistance driving systems.
“Demonstration regions across the country are applying large-model-based solutions in areas such as road network monitoring and early warning, active management of high-traffic corridors, and integrated mobility services,” said an official from China’s Ministry of Transport. By enhancing capacity along major transport routes and implementing multi-tiered, refined traffic management models, these demonstration corridors have achieved approximately a 20 percent increase in traffic efficiency and a 30 percent improvement in emergency response efficiency during unforeseen events.
Enabled by big data analytics and high-precision modeling, AI is establishing a robust digital foundation for China’s transport infrastructure. Statistics show that the 20 designated demonstration regions for digital transformation of highway and waterway infrastructure now encompass more than 60,000 kilometers of upgraded corridors, comprising approximately 54,000 kilometers of highways and 7,500 kilometers of waterways. These improved sections form a critical backbone of the national integrated, multi-dimensional transport network.
Diverse application scenarios are essential for driving the deep integration of AI into the transportation sector. The newly issued guideline identifies intelligent application scenarios across seven major areas, including assisted driving, smart railways, and smart shipping, designed to accelerate innovation through real-world implementation. “These scenarios span almost all segments of the transport system, offering broader opportunities for testing and deploying new technologies and products,” Wang said.
On the waterways front, China now has 52 automated terminals. Domestically developed intelligent operating systems for fully automated container terminals have been implemented at more than a dozen terminals both domestically and internationally. Electronic navigation charts for waterways have been successfully deployed along the Yangtze River’s main and branch routes. The accelerated adoption of intelligent technologies across ports, waterways, and vessels is significantly enhancing the efficiency of waterborne transport.
Parallel advancements are also transforming China’s road networks. The Beijing-Xiong’an expressway, powered by Baidu AI Cloud, leverages the collaboration between vision and language-based large models to deliver second-level alerts for major traffic anomalies. Didi Autonomous Driving, in collaboration with Chinese automaker GAC Aion, has developed a new generation of factory-installed autonomous-driving vehicles. As autonomous driving converges with vehicle-road collaboration, a growing number of “smart vehicles” are taking to “smart roads,” accelerating the evolution of intelligent mobility.
Deep integration of AI and transportation also depends on next-generation infrastructure. The guideline outlines targeted measures in terms of computing power, data, and networks to strengthen the supply of essential elements.
For computing power, the guideline calls for better coordination of computing resources within the transport sector and strengthening computing capacity based on major transport infrastructure and local conditions.
In terms of data, China will accelerate the development of comprehensive transport big-data centers, promote data sharing, and build high-quality dataset construction to fully leverage data as a production factor.
In terms of network infrastructure, the guideline calls for the integrated application of multiple network technologies, the construction of intelligent sensing systems and the development of high-speed data transmission channels to enable low-latency, high-reliability, and wide-coverage connectivity for vehicle-road collaboration, remote operations, and real-time monitoring.
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