Index

A oil producers: Ghana, Nigeria, Angola, ABN Amro (Dutch lender), 72 and Gabon, 114 Aero-Space and Aeronautics Ministry penalty from not paying back a loan to fi (Beijing), 49 China is likely to be more dif cult and Africa catastrophic than not paying back a CDB loans and eventual involvement in Western bank, 117 domestic politics to protect its assets, structural adjustment and stabilization including oil and energy supplies, 113 programs of IMF and World CDB loans for industry and Bank, 106 infrastructure, xi African Union, 89, 117 CDB outstanding loans ($13.7 billion) Agricultural Bank of China, 9, in, 103 55, 180 China is criticized for being the new Ahmadinejad, Mahmoud (Iranian colonialist in, 101 President), 142 China’s focus on extraction of oil and Al-Assad, Bashar (Syrian President), 142 metals to fuel China’s insatiable thirst Alcatel-Lucent, 161 for raw materials, xi Alibaba, 178 corruption, $150 billion a year is Aluminum Corp. of China, 77 lost to, 117 AMCs. See asset management companies debt history by country, 106 (AMCs) deindustrialization of, 92 America Movil SAB (mobile phones), 158 economies financed their deficits by Angola, 103 borrowing abroad to counter the Arispe, Erich (Fitch Ratings), 123 global downturn, 106 Asian Development Bank, 42

183

bindex 25 September 2012; 12:43:14 184 INDEX

Asian financial crisis (1998) Boston Consulting Group, 60, 163 about, 5, 7, 40 (Communist Party boss of CDB loans (5 trillion yuan) to companies Chongqing), 9À10, 96À97 through 10,000 LGFVs, 13 Bo Yibo (Bo Xilai’s father), 68 CDB stimulus (25 trillion yuan) to 18 Bradford University (UK), 178 provinces with proposed projects, 13 Brady, Nicholas (US Treasury China spent its way out of, 13, 41 secretary), 132 Asian Venture Capital Journal, 169 Brady Plan, 132 asset management companies (AMCs), Brautigam, Deborah (ChinaÀAfrica 56À57, 61 relations), 91, 93À94, 99, 103 Brazil CDB loan ($10 billion) to Petrobras for B development of offshore oil deposits Bain & Co., 169 tied to oil shipments of 150,000 BANDES. See Bank for Social and barrels/day and then 200,000 barrels/ Economic Development (BANDES) day one year later, 136 Bangguo, Wu (Ethiopian legislator), 93 Chinese oil equipment, commitment to Bank for International Settlements in purchase $3 billion in, 136 Switzerland, 40 oil-for-loans program, 139 Bank for Social and Economic Petróleo Brasileiro SA, 134, 136 Development (BANDES), 132 Brazil, Russia, India, and China Bank of China, 9, 55 (BRIC), 112 Bank of Communications, 28, 40 Brazil, Russia, India, China, and South Baotou Bei Ben Heavy-Duty Truck Africa (BRICS), 124 Corporation, 182 Brazilian Development Bank (BNDES), 42, Barclays Bank (UK), 72À73, 178 151, 157, 176 Beijing-based Dagong Global Credit Rating bribes and corruption, 68 Co., 16 BRIC countries. See Brazil, Russia, India, Beijing Olympic Games, 64 and China (BRIC) Beijing Party Committee, 50 BRICS. See Brazil, Russia, India, China, and Beijing State-Owned Assets Operation, 32 South Africa (BRICS) Bergsten, Fred (economist), 62 Brilliance Auto, 182 Binhai New Area, 25 British Commonwealth Development birdcage theory, 49 Corporation, 99À100 Bloomberg New Energy Finance (BNEF), 149À51 BNDES. See Brazilian Development Bank C (BNDES) CADF. See China-Africa Development BNEF. See Bloomberg New Energy Finance Fund (CADF) (BNEF) Caofeidian LGFV, 165 Bohai Bank, 25 Caparusso, John (Citigroup analyst), 57 Bohai Gulf, heavily polluted, 27 Carnegie Endowment for International Bohai Industrial Investment Fund Peace (Washington), 130 Management Co., 164 Castro, Cipriano (Venezuelan President), Bolívar, Simón, 125À26 126 Bonderman, David, 164 Castro, Fidel, 129 Bosnian power station, 178 CDB. See (CDB)

bindex 25 September 2012; 12:43:14 Index 185

CDB African private equity fund, 170 CDB changed from a bureaucracy to a CDB Caofeidian Investment Company, 165 proper international bank, 58 CDB Capital, 151, 163À71 CDB finances infrastructure to improve CDB International, 166, 171 China’s credit culture and capital CDB International Holdings, 170 markets, 63 CDB Leasing, 165À66 CDB has a special relationship with the CDB Securities, 165À66 government, 31 Center for American Progress, 157 CDB packages projects are backed by Central Committee, 46, 52 land as collateral so the cost of land Central Huijin, 166 compensation for evicted farmers must CGCOC Group, 101 be kept below market price to make a Cha, Laura (HSBC board), 170 profit, 19À20 Changsha, 1À2 CDB’s investment in Barclays Bank, 72À73 ChangshaÀLoudi expressway, 16 Chen is recreating the Chinese moneyed Chávez, Hugo (Venezuelan President) and privileged class which Communist about, 124, 128À29 revolutionaries fought to overthrow, 44 CDB oil-for-loans ($40 billion), Chen Yun, son of, 42À43 ix, 123, 143 Chinese Academy of Social Sciences, CDB’s 600-page book of attended, 49 recommendations on how Chávez Chinese financier to run a big bank, Chen should run, manage, and build ports, is longest serving, 46 roads, and railroads, ix, 131 development bank for BRICS nations, Chen Weihua (Chen Yuan’s sister), 45 proposed setting up a, 177 Chen Weili (Chen Yuan’s sister), 46 “development finance,” idea of, 62 Chen Xiaodan (Chen Yuan’s daughter), 44 “development financing” slogan, 62À63 Chen Yuan (Chairman of CDB; Chen Economic Observer interview, 40, 47À49, Yun’s son) 58À59, 68 Aero-Space and Aeronautics father, lifelong reverence for his, 43 Ministry, 49 father’s character and outlook on economic article in China Finance, 78 problems, Chen inherited his, 43 Bank for International Settlements in father’s Marxism, showed no reverence Switzerland, studied at, 40 for, 43À44 banks should do official credit appraisals father’s reputation, fiercely guards his, 45 and internal credit ratings, 59 international financiers, courted, 43 Beijing No. 4 Middle School in 1953, 47 loans officers to carry out risk analysis on Beijing’s Tsinghua University, 44 all new loans, 59 belief in shifting infrastructure investment market omnipotence and to a market-based system, 26 recentralization, 53 birth and early life, 46À48 meetings of IMF and World Bank, 39 born into the elite of the party and Milton Academy in Massachusetts, privileged world of party politics in attended, 44 Beijing, 43 party secretary of western Xicheng CDB, Chen closed hundreds of District in Beijing, 50 state-owned companies and fired personality of, 44À45 employees as he reformed the banking Phoenix TV interview (2009), system, 56 75À76 CDB, Chen was given task to run, 40 President Hu Jintao, relationship with, 73

bindex 25 September 2012; 12:43:14 186 INDEX

Chen Yuan (Chairman of CDB; Chen salt companies issued notes using salt as Yun’s son) (continued) the reserve, 46 princelings’ party and manifesto published unified tax system established and created in the China Youth Daily, 50À52 the first annual plans of the Communist read Keynes and other Western Party, 46 economists, 54 West, had little experience with the, 44 sister Chen Weili and China Venturetech Chen Yu-tung, 171 Investment Corp., 45 Chery Automobile Co. (automaker) state-led capitalism, 53 about, 103, 175 state’s role in industrial policy, 53 CDB backing for expansion into Tsinghua University in Beijing, 47 developing countries from Africa to urbanization, belief in, 2À3, 36 Latin America, 9 urbanization and property market will CDB line of credit (13.8 billion cause land prices to rise, 7 yuan), 138 US financial crisis was seen as a failure of CDB line of credit (17.7 billion the market, 75À76 yuan), 175 vice governor, PBOC, 39 owned by one of the first LGFVs in West, embraced the, 44 Wuhu, 8 and Premier Wen Jiabao, status in Venezuela, 137À38 in relation to, 45 venture in Africa with CADF, 99 Chen Yun (Chen Yuan’s father) Chery Group, 182 appearance, 40 Chery Overseas Industrial Investment Co. birdcage theory of economics, 49 CDB joint venture (12 billion yuan) with Chen Weili looked after him for ten Tata Motors’ Jaguar Land Rover, 176 months, 48 CDB loan to construct a $200 million China should advance by “crossing the factory in Venezuela, 175À76 river by touching stones,” 49 Chiang Kai-shek, Generalissimo, 47 for China to catch up with Chi Jianxin (head of CADF), 7, 97À98 developed countries it will take 50 China years, 47 Africa, China is criticized for being the conservative hard-liner (in 1980s), 45 new colonialist in, 101 controlled China’s economy during the Africa’s products and resources, China’s Communist Party’s first 40 years in demand has pushed prices up for, 102 power, 40, 42 Angola is China’s second largest oil death in 1995, 42 supplier, 103 Deng Xiaoping, relationship with, 49 bad loans were taken off the books (2004) descendants are re-creating the Chinese pushing the burden out into the future moneyed and privileged class which so that the government could report Communist revolutionaries fought to low levels of debt and a strong balance overthrow, 44 sheet during the Asian financial crisis, 57 gradualist approach to reform, 49 banking system became insolvent during hundredth anniversary of birth, 42 the Asian financial crisis (2008), 40 “late proletarian revolutionary,” 42 banking system was recapitalized by Zhu Mao, lost influence with, 47À48 and bad assets were taken off the bank personality, 44À45 books (1994), 56 Premier Zhao Ziyang, relationship banks were restructured and recapitalized with, 49À50 with 4 trillion yuan (2005), 55

bindex 25 September 2012; 12:43:14 Index 187

CDB lines of credit ($92.4 billion) to infrastructure spending doubled (2002), 7 China’s leading wind, solar, and investment-to-GDP ratio was 49 percent telecommunications companies, xi which was below that of Mongolia and central government lost its share of tax Sierra Leone, 34 revenue (1978-1994), 4 land is used as collateral and as source of Chinese firms grow by tying access to income to repay loans so local money to contracts for Chinese governments must acquire it cheaply companies, xiii and sell it at a profit, 34 Chinese oil companies are selling a local government financing vehicles portion of their Venezuelan crude on (LGFVs), 3 the world market, 134 NPL made up 40 percent of the total clean energy, $51.1 billion was invested lending (1990s), 55 into, 151 oil demand pushed oil prices up 27.1 coal fuels 80 per cent of power plants percent (2000 and 2007), 103 in, 149 oil in the Americas, is a major trader of crude oil from overseas, buys more than (Venezuelan), 135 half its, 125 private equity funds ($30 billion), debt level (March 2012), 71 state-owned companies invested debt level of 71 percent of GDP in, 163 (2010), 34 private equity has grown at a compound economic growth (2012), sixth straight annual rate of 40 percent, 164 quarterly decline in, 35 renewable energy industry, 150 economic growth averaged 9 percent a renewable energy law (2006) and feed-in year for the last three decades, 3 tariffs, 150 economic zones in Nigeria, Mauritius, sovereign wealth fund ($332 billion), 163 Egypt, Algeria, Zambia, and Ethiopia, state banking system has trillions of yuan 86, 91À93, 95À96 of debt, 3 farmers (50 million) lost their land and stimulus package of 4 trillion yuan received only a fraction of the fair (2008), 76 market price as cities expanded, tax collection reforms (1994), Zhu 3, 34, 36 Rongji’s centralized, 19, 29 farmers move from agrarian low- urbanization of the country, 2 productivity jobs to high-productivity urbanization was driving force behind urban jobs, 3 economic growth and LGFVs, 6, 36 farmers (60 percent) were not satisfied China-Africa Development Fund (CADF) with their land compensation, 19, 36 Africa-focused investment fund, 85 farmers (60 million ) will be uprooted for agreement with Xinjiang Goldwind urbanization in next two decades, 21 Science & Technology for wind focus on extraction of oil and metals from turbine development in Africa plus a Africa to fuel its insatiable thirst for raw line of credit ($6 billion plus another materials, xi $35 billion yuan), 98À99 foreign investment of $54 billion CDB funding of, 98, 178 (2008), 77 China is criticized as being the new four AMC companies were set up to take colonialist in Africa, 101 the bad loans; the Ministry of Finance China’s demand for Africa’s products put 10 billion yuan into each one; and and resources has pushed up the AMCs then issued 1.4 trillion yuan prices, 102 in bonds to Chinese banks, 57 cotton-processing factory in Malawi, 181

bindex 25 September 2012; 12:43:14 188 INDEX

China-Africa Development Fund (CADF) joint venture with Jiangsu Qiyuan (continued) Group in building a cement plant in economic zones in Nigeria, Mauritius, Ethiopia, 182 Egypt, Algeria, Zambia, and Ethiopia, joint venture with Jidong Development 86, 91À93, 95À96 Group in a $220 million cement plant Egypt’ s Suez Trade Park, funding of, 181 in South Africa, 182 for every investment it sets up a joint joint venture with Shenzhen Energy venture offshore in the Cayman Investment Co. for construction of Islands, 99 Ghana Power Station Phase I, 181 French couldn’t compete against Chinese joint venture with Sinohydro and Jinan companies in building railways and Yuxiao Group in a cement production power grids, 102 base in Mozambique, 182 fund takes only minority stakes in projects private equity investors in Africa, 100 alongside other Chinese investors and provides equity financing and CDB aims for Chinese firms to give capital comes with the checkbook for debt, 93 and technology and experience to local venture in Ghana, hold 40 percent of partners, 98 shares in, 115 glass factory in Ethiopia, 181 venture with Chery Auto (carmaker) to holds 45 percent of joint venture leather set up factories in Africa, 99 factory in Ethiopia set up with $37 Wesizwe Platinum in South Africa, 45 million in capital, 89 percent stake with Chinese metals investment of $2.5 billion for Huajian’s company Jinchuan Group in, 100 expansion into Ethiopia, 96 West African office in Ghana, and offices in joint venture with Brilliance Auto in South Africa, Ethiopia, and Zambia, 97 building automobile assembly plants in “win-win” solution, 98 Egypt and other African countries, 182 ChinaÀAfrica Development Fund, 175 joint venture with Chery Group to invest China Banking Regulatory Commission, 31 in automobile assembly plants in some China CAMC Engineering Co., 138À39 African countries, 182 China Chengxin International Credit joint venture with China FAW in Rating Co., 30 building an auto assembly plant in China Communications Construction South Africa, 182 Company, 90 joint venture with China First Auto China Communist Youth League, 51 Works in a $100 million truck and China Construction Bank, 9, 28, 55, 56, 74 passenger car plant in South Africa, 182 China Daily, 180 joint venture with China Merchants China Development Bank (CDB). See also Group in a container port in Lagos, state-owned enterprises (SOEs) Nigeria, 182 Africa, outstanding loans of $13.7 billion joint venture with China National in, 103 Agricultural Development Group jointly African loans and China’s eventual invested in a sisal project in Tanzania, 182 involvement in African domestic joint venture with China North Vehicle politics to protect its assets, including Corporation and Baotou Bei Ben oil and energy supplies, 113 Heavy-Duty Truck Corporation in Asian financial crisis, provided stimulus heavy-duty commercial trucks in (25 trillion yuan) to 18 provinces with South Africa, 182 proposed projects, 13 joint venture with Chinese enterprises in Asian financial crisis and centralization of leather processing plant in Ethiopia, 182 banking system, 57

bindex 25 September 2012; 12:43:14 Index 189

Asian financial crisis and lending (5 trillion Chinese companies depend on low-interest yuan) to Chinese companies through CDB financing for their operations in 10,000 LGFVs, 13 both China and across the globe, 137 assets and total loans (2011), 42 Chinese government stands behind assets of over 6 trillion yuan (2011), 41 CDB’s debts and lending, 41 bad assets (15 billion yuan) were Citigroup, CDB’s attempt to buy purchased from Industrial & stake in, 72 Commercial Bank of China, 10 commercial bank (2008), state-owned, 77 bad debt (100 billion yuan) removed companies such as Huawei, ZTE, Chery (2004), 57 Auto, and Sinohydro receive billions of bad loans (2 billion yuan) were bought dollars in loans from CDB for their from Tianjin FAW Xiali Automotive overseas expansion, 143 Co. and replaced with new market companies such as Huawei in telecom, capitalization ($2 billion), 10 carmaker Chery Auto, state-owned oil Beijing Olympic Games stadiums and Sinopec, and dam makers Sinohydro sports facilities, loan (43.4 billion yuan) Group have markets created for them provided for, 64 by CDB, 103 bond issuer, country’s biggest, 68 “credit-default swaps” trade below other bond market plunged and National global banks, 71 Development and Reform credit reforms, CDB went through three Commission stopped issuing bonds (3), 59À60 (Aug. 2011), 30 debt based bank creating liabilities bonds (vs. deposits) are bought by China’s (trillions of yuan) for the state, 41 commercial banks, 5 debt-for-equity shares (48 billion yuan), bonds are sold into the global market at a UBS Warburg disposed of, 61 fraction of the cost of other global debt payments: 33 percent of LGFVs banks, 41 generated insufficient cash flow to bonds are sold with a sovereign credit make debt payments; and 68 percent rating to raise funds with a zero-risk reported returns on capital less than the weighting, 74À75 benchmark lending rate, 30 bonds have maturity of 20 years, 79 debt (trillions of yuan) was given to the CDB backed a secret raid by Aluminum Ministry of Finance to backstop Corp. of China to acquire stock in Rio (2004), 58 Tinto, 77À78 dim sum bonds in Hong Kong, 78 CDB has independence from European Union trade action against government for investment decisions CDB financing, xii and its functions as a commercially financed infrastructure growth in coastal driven institution, 179 regions of the country, 67 “CDB would be out of business in a financial crisis (2008) and ($2 trillion) matter of days if banks stopped buying stimulus by CDB and state banks to the bonds,” 72 keep the Chinese economy going by central government liabilities are hidden by building roads, bridges, subways and CDB selling bonds to commercial banks stadiums, x, 41 which use people’s savings to buy the funding for Congo’s road and rail networks, bonds which earn a higher yield for and mining, energy, agriculture, and absolutely zero risk, 69 manufacturing industries, 104 Chinese companies benefit from nearly all funding for long-term infrastructure loans for foreign development, 111 projects, 5

bindex 25 September 2012; 12:43:14 190 INDEX

China Development Bank (CDB) see also line of credit ($15 billion) to ZTE state-owned enterprises (SOEs) Corp., 158 (continued) line of credit ($45 billion) to ZTE Ghana’s loan of $3 billion, 108 Corp., 66 global energy loans by date and lines of credit ($92.4 billion) funneled to amount, 142 China’s leading wind, solar, and Good Housekeeping Seal of Approval, telecommunications companies, xi, 131 CDB loans have the government’s, 9 lines of credit ($47.3 billion) to Chinese Huawei and ZTE, lines of credit worth solar and wind companies, 149 $45 billion to, 66 loan disbursements are paid directly into investment will stimulate growth, 116 project contractors’ accounts and CDB land prices fell (2011) andLGFVs are unable does due diligence on each project, 112 to pay principal of bank loans, 30 loan (30 billion yuan) for Three Gorges land prices fell (2011) and Yunnan Dam project, 63À64 Highway Construction was unable to loan ($301.87 million) for transportation pay the principal of the outstanding of liquid natural gas into Guangdong bank loan (90 billion yuan) only Province, 66 interest, 30 loans are a “credit guarantee” from the land/property bubbles, LGFVs have central government, 26, 67 created one of the world’s biggest, 34, 36 loans are tied to short-term indices such as land value in the future is leveraged into six-month LIBOR, 117 large up-front loans, 7 loans ($14.7 billion) for clean energy and lending for power, road construction, other energy-saving projects (2010), 151 railways, petrochemicals and loans for infrastructure rose from 226.9 telecommunications, 66 billion yuan (2003) to over 1 trillion LGFV model, invented, 12 yuan (2009), 7 LGFV model of financing, 12 loans (5.39 billion yuan) for urban Light Manufacturing in Africa report infrastructure in Wuhu (2010), 7 (2011), 92 loans lock countries into supply contracts line of credit (5.6 billion yuan) to making them dependent on China’s Bohai Investment Co., 28 purchasing power and on the revenue line of credit ($30 billion) to Huawei, from commodity sales, 125 158, 160 loans to China’s telecommunications and line of credit ($45 billion) to Huawei, 66 clean energy companies are changing line of credit ($9.1 billion) to LDK the global corporate landscape, 143 Solar, 151 loans (5 trillion yuan) to companies line of credit ($6.5 billion) to Sinovel through 10,000 LGFVs during Asian Wind, 151 financial crisis, 13 line of credit ($7.6 billion) to Suntech loans to top LGFVs, 32 Power Holdings, 151 loans to Venezuela are guaranteed by oil line of credit ($4.6 billion) to Trina shipments, 130 Solar, 151 loans ($1.7 billion) to Yingli (2008-2011), line of credit ($5.3 billion) to Yingli 149 (2010), 149 loan ($30 billion) to China National line of credit ($45 billion) to ZTE and Petroleum Corp to fund overseas Huawei in Ethiopia, 89À90 acquisitions, 78

bindex 25 September 2012; 12:43:14 Index 191 loan to Ghana for infrastructure including catastrophic than not paying back a 200-megawatt gas-fired plant and fiber Western bank, 117 optic cable, 115 policy bank, 180 loan ($3 billion) to Ghana to finance private equity subsidiary for domestic roads, railroads, and an oil terminal and yuan investments, 165 pipeline network, xi, 86, 108, 111 provides “seed money” that no loan ($10 billion) to Huawei for overseas commercial bank would be willing to markets, 159 provide by transforming Chinese loan (4 billion shillings) to Kenya, 116 savings into infrastructure, 5 loan (10 to 20 billion yuan) to redevelop “purpose was to create a market out of parts of Tianjin, 10À11 nothing,” 6 loan ($6 billion) to Russian national oil reputation as China’s best-run major bank producer Rosneft (2005), 141 with lowest nonperforming loan rate of loan ($25 billion) to Russian pipeline any lender, 31 operator Transneft and national oil risky lending to countries with a history producer Rosneft, 141 of credit defaults such as Venezuela and loan to Sinochem to purchase Atlantis, a Ecuador, 69 subsidiary of Norway’s Petroleum Sichuan Express Construction & Geo-Services, 66 Development Corp. (49 billion yuan loan ($40 billion) to Venezuela, 123, 127 loan and line of credit) was cited for nonperforming loans (NPLs), 40À41, violating rules, 30 58À60, 65 state companies building infrastructure nonperforming loans (NPLs) projects won’t be able to generate cash (1998-2001), 60 flow for years, if ever, 35 nonperforming loans (NPLs) ratio state-owned enterprises (SOEs), backs (1997) was 42.7 percent (170 billion overseas acquisitions by, 60 yuan), 59 structure of, 166 oil-for-loan deals with Brazil, Russia, and takes “the long-term view,” 131 Venezuela (2009), 124 top LGFV recipients of CDB oil-for-loan ($2 billion) for public works Loans, 32 projects in Ecuador, 139 transparency of CDB, 71À72 oil-for-loan ($40 billion) program with US trade action against CDB Venezuela, 123, 143 financing, xii oil-for-loan ($1 billion) to Ecuador, 139 Venezuela, 61.5 billion yuan loan oil-for-loan to Ghana requires 60 percent to, 78 of the work goes to Chinese Wen Jiabao wants CDB to become a contractors, 113 commercial bank, 75 oil-for-loan (61.5 billion yuan) with Wuhu Model of financing urban Venezuela, 78À79 infrastructure construction, 7À9, 22 overseas lending, monopolized, 41, 117 Yunnan Investment Group (loan of 15.4 packages projects are backed by land as billion yuan) had its bonds put on a collateral while the cost of land watch list (Nov. 2008), 30 compensation to farmers is kept below China Exim Bank (Export-Import Bank of market price, 19À20 China), 90 penalty from not paying back a loan is assets and total loans (2011), 42 likely to be more difficult and bonds are sold to raise funds, 103

bindex 25 September 2012; 12:43:14 192 INDEX

China Exim Bank (Export-Import Bank of Chinese people’s savings China) (continued) CDB bonds, savings are ploughed into, 3, Ecuador loan for 1,500-megawatt 6, 34, 55, 69 hydropower plant, 140 central government liabilities are hidden Ghana loan ($6 billion), 108 by CDB selling bonds to commercial investments in railways, roads, bridges, banks with people’s savings at communications, telecommunications, absolutely zero risk, 69 agricultural areas benefit the LGFVs channel savings into investments people, 105 and construction, 3, 34, 55 loan ($67.2 billion) to Africa (2001 to state-owned banks, savings are funneled 2010), 103 into, 36 overseas lending, monopolized, 117 state-owned enterprises (SOEs), savings policy bank, 180 are funneled into, 69 China First Auto Works, 182 Chongqing (city) China Hasan International, 111 CDB bought up nonperforming loans of China Inc. (state-led capitalism), 43, 53, 172 state-owned enterprises (SOEs), 11 China Index Academy, 24, 26 CDB-invented LGFV model of China International Capital Corporation, financing, 12 28, 46 debts of over 157 billion yuan (2012), 12 China Life Insurance Co., 164, 168 local government financing vehicles China Merchants Group, 182 (LGFVs), 3 China National Agricultural Development state-owned companies had grown their Group, 182 assets to 700 billion yuan through China National Nuclear Corp., 166 CDB, 11 China National Petroleum Corp. (CNCP) state-owned companies had grown their about, 78, 166 assets to 700 billion yuan through CDB in Venezuela, 128À29, 132 funding, 11 China North Vehicle Corporation Chongqing City Transportation, 32 (NORINCO Motors), 182 Chongqing Expressway Development China Petroleum & Chemical Corp., 128 Corporation, 11 China Railway Construction Corp., 2 Chongqing Expressway Group, 32 China Railway Group Limited, 89, Chongqing Machinery, 11 138À39 Chongqing Yufu Asset Management China Re-Insurance Corp, 168 Group, 10. See also Temasek China’s Communist Party, 4, 46 Chu, Steven (US Energy Secretary), 152 China Shenhua Energy Co. (coal Cinda AMC, 56 railroad), 27 Cisco Systems, 159 China’s Land Resource Bureau, 19 CITIC Group, 128, 131, 137 China Southern Airlines, 45 Citigroup, 13, 72 China’sUnfinished Economic Revolution clean energy projects, 151 (Lardy), 56 CNCP. See China National Petroleum China Venturetech Investment Corp., 45 Corp. (CNCP) China Youth Daily, 48, 51À52 CNTIC Trading Co., 139 Chinese Academy of Social Sciences commercial banks (Beijing), 21 CDB bonds, Chinese savings are Chinese People’s Political Consultative ploughed into, 3, 6, 34, 55, 69 Conference, 128 insolvent and reformed to list overseas, 5

bindex 25 September 2012; 12:43:14 Index 193

Congo, 104 China Exim loan for a 1,500-megawatt ConocoPhillips, 129 hydropower plant, 140 Correa, Rafael (President), 139À40 CNCP oil-for-loan of $2 billion, 140 Côte d’Ivoire (Ivory Coast), 101 Correa, Rafael (President), 139À40 Coulter, Jim (TPG Capital), 163À64 default on $3.2 billion of bonds, 139 credit-default swap products, 69, 71 oil shipments to China may not match its Crédit Foncier (France), 53 commitments, 140 Crédit Mobilier (France), 53 sovereign credit rating, very low, 140 Crystallex International Corp., 137 Edinger, Hannah (analyst at Frontier Cui Jindu (Tianjin’s vice mayor), 26 Advisory), 93 Cultural Revolution (1966 to 1976), 44, Egypt’ s Suez Trade Park, 181 46À48, 51, 69 Energias de Portugal SA (Portugal’s state- owned energy company), xii, 64, 178 D Ericsson, 159, 162 Dai Xianglong (former governor of People’s Ertan Hydropower Station (western Bank of China), 23, 40 China), 64 Davies, Martyn (head of Frontier Securities Ethiopia in South Africa), 97 CDB investment in a large glass factory Dawu village, 33 and cement factory in return for raw Dawu villagers, 20 materials and Chinese exports, 86 Deng Shuang (managing director), 168 CDB line of credit ($45 billion) to ZTE Deng Xiaoping (Chinese leader), 4, 49 and Huawei, 89À90 Development Research Center, 14 China Railway Group Limited building a Diamond, William (World Bank light rail project around Addis expert), 177 Ababa, 89 Diaoyutai State Guest House (Beijing), Chinese firms help build the 132, 163 infrastructure with the support of Disraeli, Benjamin (British prime minister), China’s state-owned banks, 92 125À26, 130 duty-free import of Chinese machinery and Downs, Erica (scholar at Brookings a seven-year break in income taxes, 88 Institution), 129À30 glass factory cut production, 100 Dutch disease, 109 International Footwear Institute, 96 joint venture leather company with CADF and investment of $37 million E in capital, 89 Economic Observer leather exporter, xi À Chen Yuan interview, 40, 47 49, pollution from industries, 94 À 58 59, 68 trench for pipes on a road diversion Economic Reform Commission, 50 funded by Exim Bank and carried out economic zones in Nigeria, Mauritius, by China Communications Egypt, Algeria, Zambia, and Ethiopia, Construction Company, 90 À À 86, 91 93, 95 96 wages are a fifth of China’s and half of Ecuador, 132 Vietnam’s, 87 CDB oil-for loan of $1 billion for working hours, Ethiopian vs. Chinese, 93 4 years, 139 ZTE is building a national phone and CDB oil-for loan of $2 billion for 8 years Internet network, 89 for public works projects, 139 European Commission, 155

bindex 25 September 2012; 12:43:14 194 INDEX

European debt crisis, 62 CDB oil-for-loan requires 60 percent European Investment Bank, 151 of the work goes to Chinese European Union, xii, 102, 162 contractors, 113 Export-Import Bank of China, 70, 138 China Exim Bank loan ($6 billion), 108 Exxon Mobil Corp., 129 debt relief by World Bank and IMF ($3.7 billion), 109 F debt-to-GDP ratio 120.5 percent Fan Wei (analyst at Hongyuan Securities), (2001), 109 71À72 external debt (1970-2009), 112 FDI. See foreign direct investment (FDI) IMF increased debt ceiling to $3.4 Fewsmith, Joseph (Tufts professor), 50 billion, 110 financial crisis (2008), global, 12À13, 41, 76 Mahama, John Dramani (Ghanaian First Solar Inc., 148 President), 85, 108, 111, 113 Fitch Loan Ratings, 103, 114À15 oil discovery of 600 million barrels of Fitch Ratings, 134 light oil off the coast, 108 “Five Principles of Co-Existence,” 104 Oxfam’s 2009 report on, 109 FMO (Netherlands), 42 per-capita GDP raised by $500 to FoF (fund of funds), 169 $1,300, 110 foreign direct investment (FDI), 92 ten-year bond yield, 109 foreign private equity firms, 170 Ghana National Gas Company, 111 Fox, Richard, 114 Ghana National Petroleum Frenkel, Jacob (former governor of Bank of Corporation, 111 Israel), 39 Ghana Power Station Phase I, 181 Fujian Provincial Expressway, 32 Global Com Limited (Nigeria), 161 Fuzhou (city in Jiangxi Province), 21À22 Global Development Banks, 42 global financial crisis (2008), 12À13, 41, 76 G Goldman Sachs, 13, 150, 152, 163, 167 G-7 countries, 158 Gong, Fannie (investment manager), Gallagher, Kevin (Boston University), 139 94À95 Gamora, Gedion (academic in Addis Great Hall of the People (Beijing), 97, 141 Ababa), 89, 93 Great Leap Forward, 47 Gang of Four, 48 Green, Stephen (Standard Chartered), 35 Gao Jian (CDB vice governor) Greenberg, Hank (AIG head), 62 about, 97, 141 Green Energy Holding Co. Ltd., 148 background of, 5, 69 Guangdong International Trade and father of China’s modern day bond Investment Company, 5 market, 5 Guangdong’s chamber of commerce, 95 tender method of selling (1 billion yuan) Guangxi Communications, 32 of bonds, 68 Guan Jiangzhong (Dagong’s chairman), 33 urbanization was driving force behind Guochuang Fund, 168 economic growth and used local Guo Shuqing (former head of China financing vehicles, 6 Construction Bank), 175 Ghana B+ (Fitch) loan rates, 115 CDB loan ($3 billion) to finance roads, H railroads, and an oil terminal and Harrison, Brian (Solyndra CEO), 152 pipeline network, xi, 86, 108, 111 Harvard, 180

bindex 25 September 2012; 12:43:14 Index 195

Heavily Indebted Poor Country I initiative, 107 ICBC (bank), 28 Hebei Bohai Investment Co., 27À28 IMF. See International Monetary Fund He Yuxin (Hong KongÀbased (IMF) analyst), 67 “Impressions of Chen Yuan” (Luyang), 36 Hochberg, Fred (head of US Exim Bank), Industrial and Commercial Bank of China, 147, 157 9À10, 55, 137 Hong Kong stock market, 41 Inter-American Development Bank, 42 Hou Weigui (ZTE chairman), 162 interest rate subsidy for renewable energy HSBC analysis, 30 companies, 155 Hu, Fred (head of Goldman Sachs in International Monetary Fund (IMF) China), 44, 75, 167 Africa has missed out on the global Huainan Urban Construction Investment manufacturing boom, 91 Co., 15À16 Asian financial crisis (1998), 40 Huajian Group (shoes maker), 94 China’s investment-to-GDP ratio was 49 Huang (Chongqing’s mayor), 11À12 percent (below only that of Mongolia, Huanghua Port, 27À28 Sierra Leone), 34 Huang Qifan (Chongqing’s deputy Ghana, debt ceiling increased to $3.4 mayor), 10 billion, 110 Huang Zhendong (Chongqing party Ghana debt relief ($3.7 billion) by World secretary), 10 Bank and IMF, 109 Huarong AMC, 56 growth that loans produce, does not Huawei Technologies Co., 103, 131 consider, 113 CDBÀHuawei loan, structure of, 161 recommended that Asian countries open CDB line of credit ($30 billion), their banking system to competition 158, 159 and close sick banks, 40À41, 53 CDB line of credit ($45 billion), 66 resource discoveries do not help poor CDB loan ($10 billion) for overseas countries due to their weak markets, 159 institutions, 114 CDB loans caused a global backlash, 162 structural adjustment and stabilization CDB offers credit lines to overseas programs, 106 telecom operators to buy Huawei US subprime debt crisis and $1 trillion in equipment, 160 losses, 12 China’s largest maker of phone equipment and the world’s second J largest after Ericsson AB, 158 overseas’s sales after CDB loans, 160 Jiamusi New Era Infrastructure Construction positioned itself ahead of Nokia and Investment Group Co., 15 Siemens in less than 15 years, 157 Jiang Lele (factory manager in Ethiopia), À Hui Liangyu (former governor of Anhui 86 87 Province), 7 Jiangsu Qiyuan Group, 93, 182 Hu Jintao (President), 5, 25, 96, 103, Jiang Zemin (former President), 9, 62, 65, 73 ’ 108, 165 Jiang Zemin s grandson, 166 Hunan Province, 40, 45, 48 Jidong Development Group, 182 Hunan Provincial Expressway, 32 Jinan Yuxiao Group, 182 Hu Yaobang (party general J.P. Morgan, 41 secretary), 49 J.P. Morgan Chase & Co., 41

bindex 25 September 2012; 12:43:14 196 INDEX

K bonds approved by National Kaixin Investments, 166 Development and Reform Kenya, 116 Commission, 27 KFW Bankengruppe (Germany), 42 borrow money without any collateral, 28 Kissinger, Henry (former secretary of CDB-invented LGFV model, 12 state), 62 CDB loans to top LGFV, 32 KKR & Co., 171 CDB packages projects are backed by Kong Xianglu (Chinese trainer), 94 land as collateral while the cost of land Kornai, János (Hungarian economist), 50 compensation to farmers is kept below Kosmos Energy (US company), 108 market price, 19À20 Kufuor, John (Ghanaian president), 108 CDB’s lending to local governments and KunmingÀShilin Expressway, 165 the failure of Zhu Rongji’s 1994 reforms, 29À30 L China Banking Regulatory Commission ’ Lai, Jack (LDK s CFO), 156 and LGFV loans became illiquid loans land-leasing revenues, 19 which could be withdrawn at a Land Resource Centers, local moment’s notice, 31À32 government, 26 economic slowdown and increased Lardy, Nicholas (Brookings Institution in lending to LGFVs, 35 Washington, DC), 56 as “engines of inequality in China,” À À LDK Solar, 150 51, 153 57 20À21 Lehman Brothers, 13 farmers (60 million) will be uprooted Lekki Free Trade Zone (Nigeria), 93 for urbanization in next two decades, 21 Lemierre, Jean (BNP Paribas adviser), 62 house prices rose 140 percent since Lenovo, 45 1998, 34 Levin Zhu (son of Zhu Rongji), 46 land disputes often lead to violence, 21 fi LGFVs. See local government nancing land grabs and compensation disputes, 60 vehicles (LGFVs) percent of all large-scale protests in Li Jiange (chairman of China International China are due to, 20 Capital Corporation), 170 land is used as collateral and as source of Li Jiping (CDB vice president), 104 income to repay loans so local Li Keqiang (Premier), 150 governments must acquire it cheaply À Li Liguang (subsistence farmer), 2 3, 15, and sell it at a profit, 34 À 18, 33 34 land prices dropped (2011) and LGFVs Li Luyang (Chinese journalist), 39, 50, 65 are unable to pay principal of bank Lin, Justin Yifu (World Bank economist), loans, 30 À 90 92 LGFVs have dozens of subsidiaries, cross- Linklaters (US lawyers), 116 holdings, and cross-guarantees making Li Peng (former premier), 46 it impossible to tell how much one local Liu Jun (head of CADF), 89 government is on the hook for, 33 Liu Kegu (former CDB vice governor), loans (10.7 trillion yuan) to companies À À À 74 75, 123 24, 126 30, 176 with shaky or nonexistent collateral, 14 Li Zongwei (Yingli Green Energy CFO), by local governments allow them to 149, 153 spend beyond the limits of their fi local government nancing vehicles budgets, 3 (LGFVs) property bubbles, LGFVs have created bonds and prospectuses, 15 one of the world’s biggest, 34, 36

bindex 25 September 2012; 12:43:14 Index 197

savings of Chinese people are channeled London Interbank Offered Rate (LIBOR), into investment and construction, 3, 70, 73, 111, 141, 158, 179 34, 55 Loudi (town), 2, 15À18 savings of Chinese people are channeled CDB underwrote LGFVs 1.2 billion yuan into state-owned banks, 36 bond sale, 15 Shanghai LGFV loans (2 billion yuan), 30 City Construction’s debt of 3.02 billion state companies building infrastructure yuan (mid-2010), 16À17 projects won’t be able to generate cash government-funded infrastructure flow for years, if ever, 35 projects such as the stadium and high- 10,000 companies were backed by speed rail line, 15À16 LGFVs (2010), 14 landholdings increased by 394 percent, 15 33 percent of LGFVs generated insufficient land is rezoned as urban and farms are cash flow to make debt payments; and 68 relocated, 18 percent reported returns on capital less land is sold to developers, 19 than benchmark lending rate, 30 stadium should boost land value, 17À18 local governments Loudi City Construction, 21 central authorities, they play a game of cat Loudi City Construction Investment and mouse relationship with, 4 Group, 15 debt is paid off by land sales whose value Loudi city government, 20 should increase from infrastructure Lu Chunjiang (Communist Party financed by the loans, 19 member), 28 debt of 10.7 trillion yuan (2011) and nonperforming loans (NPLs), 13 land compensation, 60 percent of China’s M farmers were not satisfied with their, Macartney, Lord George, 13 19, 36 “Made in China” image, 92 land-use rights sold for 7 trillion yuan Mahama, John Dramani (Ghanaian (2006-2010), 19 President), 85, 108, 111, 113 LGFVs have dozens of subsidiaries, cross- Ma Hong (economist), 49 holdings, and cross-guarantees making Malawi cotton-processing factory, 181 it impossible to tell how much one local Mallaby, Sebastian (author), 105 government is on the hook for, 33 Mao Zedong, Chairman, 21, 40, 64 obtained 2.7 trillion yuan by selling land Massachusetts Institute of Technology, 180 rights of farmland for nonagricultural MauritiusÀJinfei zone, 93 use, 19 McNamara, Robert (World Bank), 105 ratings agencies give bonds sold by local medical insurance, 2 government backed companies high Meleshad (Ethiopian prime minister), 100 ratings, 33 Meles Zenawi (Ethiopian Prime Minister), real estate companies (over 12,000), 4 87, 95, 107 tax intake, had 30 percent of country’s, 5 Merkel, Angela (German Chancellor), 45 tax revenue declined from 78 to 45 Mexico, 106 percent (2002), 5 Miao Liansheng (Yingli Green Energy urbanization and widening wealth gap, 19 CEO), 147À49, 152À53 Zhu Rongji’s 1994 reforms gave local Ministry of Railways, 70 governments greater control over the Moody’s, 178 usage rights of land and all land-leasing Moody’s Investors Service, 124, 140 revenues, 19, 29 Moreno, Carlos García (CEO), 158

bindex 25 September 2012; 12:43:14 198 INDEX

Moreno, Luis (head of Inter-American PBOC. See People’s Bank of China (PBOC) Development Bank), 131 PDVSA. See Petróleos de Venezuela SA Morgan Stanley, 152 (PDVSA) Motorola, 159 People’s Bank of China (PBOC), 39À40, 44 Mugabe, Robert (President of Pérez Alfonso, Juan Pablo (OPEC), 126 Zimbabwe), 96 Permira, 171 Multilateral Debt Relief Initiative, 107 petitioning, 17 Mwangi, James (CEO Equity Bank Ltd.), 116 PetroChina Co., 78 Petróleo Brasileiro SA (Brazil), 134, 136 N Petróleos de Venezuela SA (PDVSA), 126, Naim, Moises (Venezuelan trade minister), 132À34, 137 130, 132À33, 135, 142 Petroleum Geo-Services (Norway), 66 National Development and Reform photovoltaic (PV) cells, 149 Commission, 27, 30À31, 59, 99, Platmin Congo Ltd. (Congo), 100 169À170 Poisoned Wells (Shaxson), 109À10 National Financial Work Conference, 180 Portugal, xii, 64, 178 National Social Security Fund, 168À69 private businesses, small, 50 New Capital International Investment, 170 private equity investors in Africa, 100 New World Development Co., 171 Probe International, 130 New York Stock Exchange (NYSE), 148 Proparco’s FISEA fund, 100 Ng, Jessica (BNEF analyst), 153 property bubble, 34, 36 Nigeria, 93, 110 Putin, Vladimir (Prime Minister), 141 Nixon, Richard (President), 132, 163 Nkrumah, Kwame (Ghana), 108 Q nonperforming loans (NPLs) Q-Cells SE (German solar cell maker), 153, of CDB, 40À41, 58À60, 65 156 in Chinese banking system, 54À55 Qian Mingqi, 21 of Chongqing, 11 Qing Dynasty, 13 at J.P. Morgan, 67 Qiushi (Seeking Truth) journal, 52 of local governments (10.7 trillion yuan in Qu, Cindy (Z-Ben Advisors), 169 2011), 13 R of state-owned enterprises (SOEs), 11 À NYSE. See New York Stock Exchange Ramírez, Rafael (PDVSA head), 133 34 (NYSE) Reagan, Ronald (President), 52 Red Guards, 44, 48 O Reinhart, Carmen, 70 Obama, Barack (President) 151 renminbi (RMB), 131 Old Summer Palace, 48 Renmin University (Beijing), 7, 19 Organisation for Economic Co-operation Resolution Trust Corporation, 56 À and Development (OECD), 130 31 rezoning of land as urban, 18 Organization of Petroleum Exporting Rhodes, William (Citibank executive), Countries (OPEC), 126 131À32 ’ Oxfam s 2009 report on Ghana, 109 Rhodes, William (former senior vice P chairman of Citigroup), 54À55 Paal, Douglas (former vice chairman for Asia Rio Tinto, 77 at J.P. Morgan), 45, 67 Rodríguez, Miguel Ángel (Venezuelan Paulson, Hank (US Treasury Secretary), ix lawmaker), 133

bindex 25 September 2012; 12:43:14 Index 199

Rogoff, Kenneth, 70 Sinopec (state-owned oil), 103, 129, 132 Rosneft (Russian oil producer), 141 Sinosure (state-owned insurance Royal Bank of Scotland, 72 company), 160 Rubin, Robert (US Treasury Secretary), ix SOEs. See state-owned enterprises (SOEs) (journalist), 76À77 SolarWorld (German solar company), 154 Russia SolarWorld Industries America, 155 CDB loan ($6 billion) to national oil Solyndra (CaliforniaÀbased solar company), producer Rosneft (2005), 141 151À52 CDB loan ($25 billion) to pipeline South Sea Bubble, 126 operator Transneft and national oil Soviet Union, collapse of, 4 producer Rosneft, 141 Standard Chartered, 34, 141 Standard & Poor’s, 70, 178 S State Administration of Foreign San Francisco housing project, 178 Exchange, 99 SARS. See severe acute respiratory state capitalism, 51 syndrome (SARS) State Council, 51, 73À74, 78 Schwarzenegger, Arnold (Governor of State Grid Corp., 136 California), 151À152 State Land Resources Bureau, 20 Sechin, Igor (Russian Deputy Prime state-owned banks, 14, 51, 55 Minister), 141 state-owned enterprises (SOEs) Second China Railway Construction bank set credit targets and reserve Bureau Group Co., 139 requirements for, 51 Second Opium War, 22 CDB bought up nonperforming loans severe acute respiratory syndrome of, 11 (SARS), 24 CDB loan for an overseas acquisition by, Shanghai 60, 66, 78 Jiang Zemin, home to former president, 9 CDB staff came from, 58 loan (2 billion yuan) for property CDB worked with a local government projects, 30 investment companies to resolve bad local government financing vehicles debts of, 61 (LGFVs), 3, 9, 30 China’s commercial banks lending to, 41 river cleanup project funded by drainage China was insolvent from a stock of loans assessment charge from affected users of made to, 55 the river, 19 Chinese people’s savings were funneled Shanghai Chengtou, 32 into, 69 Shanghai Expo (2010), 64 loans (1.2 trillion yuan) were written off Shaxson, Nicholas, 109À10, 113À14 to state banks (1994), 56 Shenzhen Energy Investment Co., 115 Stiglitz, Joseph (World Bank chief Shi Zhengrong (Suntech CEO), 153 economist), 107À8 Sichuan Expressway, 32 stimulus package (2008), 76 Sichuan Expressway Construction & “Strategic Choices and Practical Responses Development Corp., 30 after the Collapse of the Soviet Siegel, Richard (US-based footwear Union,” 51 consultant), 90 sub-Saharan Africa Siemens, 159 debt in, 106À7 Siguler Guff & Co. (New York), 168 gross domestic product (GDP) of, 91À92 Sinohydro Group, 103, 128, 137À39, 182 Summers, Larry, 166

bindex 25 September 2012; 12:43:14 200 INDEX

Sunday Communications (Hong Kong), 161 Tianjin Binhai Construction and Investment Suntech Power Holdings Co., 153 Group, 15 Sunways AG (German solar panel maker), 156 Tianjin Binhai New Area Construction & Suzhou (canal city), 9 Investment Group Co., 22, 25 Tianjin Economic Technological T Development Area (TEDA), 93 Tang Jiaxuan (former foreign minister), 97 Tianjin FAW Xiali Automotive Co., 10 Tata Motors’ Jaguar Land Rover, 176 Tianjin Infrastructure Construction, 32 TEDA. See Tianjin Economic Tianjin Rural Commercial Bank, 25 Technological Development Area Tishman Speyer Properties LP, 22 (TEDA) TPG, 171 Tele Norte Leste Participacoes, 158 Transneft (Russian pipeline operator), 141 Temasek, 10 Trina Solar, 153 Thatcher, Margaret (Prime Minister), 53 Tsinghua University (Beijing), 47 Three Gorges Dam project, Tullow Oil (U.K company), 108 63À64 Tung Chee-hwa (chief executive of Hong Tiananmen Square crackdown, 4, 104 Kong), 170 Tianjin (city) 21st Century Business Herald (newspaper), CDB bought bad loans (2 billion yuan) 98À99 from Tianjin FAW Xiali Automotive Co. and replaced with new market U capitalization ($2 billion), 10 UBS, 150 CDB-invented LGFV model of UBS Warburg, 61 financing, 12 underground bankers, 34 CDB loans (80 billion yuan), 26 Unipec Asia (subsidiary of Sinopec), 111 CDB loan (10 to 20 billion yuan) to United Nations Economic Commission for redevelop parts of the city, 10À11 Africa, 89 city’s land sales revenue (73.2 billion yuan United Nations Environment Programme in 2009) was a 67 percent increase over Financial Initiative, 117 2008, 24 United States (US) government income from selling land aid to Iraq totaled $28.9 billion (2003 to rights will pay off loans, 24 2006), 124 LGFV has four subsidiaries for different antidumping duties of roughly 31 percent projects including two subway lines, on Chinese made PV equipment, 155 greening of the city, and riverside CDB financing and trade action against infrastructure development, 24 China, xii loan was secured with 15 years of land economic crisis, xi usage rights sales, 23 financial crisis (2008), 12, 41 “Manhattan” project included 48 Conch housing bubble, 12 Bay skyscrapers, high-speed rail station, oil, world’s largest importer of, 125 164 million square feet of office space, postwar aid ($29.2 billion) to Germany and a 1,930-foot-high tower, 24À25 (1946 to 1952), 124 people (5,000 ) evicted for Binhai New San Francisco housing project, 178 Area project, 25 solar energy boom, 151 Wen Jiabao (Premier), home to, 9 Upper Chance Group (Hong Kong), 73 Tianjin Binhai Construction and urbanization, forced, 34 Inventory, 32 urban residence permit, 33

bindex 25 September 2012; 12:43:14 Index 201

US Agency for International Development debt, years of default and rescheduling (USAID), 90 of, 127 US Department of Energy, 151À52 gold industry nationalized (2011), 137 US Environmental Protection Agency, 148 IMF and US Treasury and commercial US Export-Import Bank, 139, 151 banks bailed out Venezuela (1989) so US Federal Financing Bank, 151 itcouldservice$33billionininternational US Federal Reserve Bank, x, 49 debts it had accumulated, 126 US House of Representatives, Intelligence Las Cristinas and Las Brisas gold Committee, 162 deposits, 126 “Using Development Finance to Serve the loans collateralized by the revenues from ‘Going Out’ Policy” (China Finance), the sale of oil, 124 78 loan used to acquire phone networks, US Treasury, 76 power stations and housing complexes, oil refineries and pipelines from V Chinese companies, 128, 136À37 Venezuela oil accounts for 95 percent of export Bank for Social and Economic revenue, 143 Development (BANDES), 132 oil assets were nationalized, 129 Castro, Cipriano (President), 126 oil exports vs. Chinese customs figures, 135 CDB oil-for-loan (61.5 billion yuan), 78 oil revenue harnessed to help the poor CDB oil-for-loans ($40 billion) program, through free housing and food, 129 123, 143 oil shipments to China may not match its CDB’s 600-page book of commitments, 140 recommendations on how Chávez oil shipments to China were modified should run, manage, and build ports, (2011), 134 roads, and railroads, ix, 131 PDVSA borrowed on global bond markets Chávez, Hugo (President), 124, 128À29 to meet its social funding goals, 133À34 Chávez used PDVSA for his own social PDVSA oil-backed loan ($1.5 billion) spending schemes including missions to from Industrial and Commercial Bank the poor, 142 of China for housing to be built by China’s state-controlled energy giants CITIC, 137 Sinopec and CNPC are exploring for Petróleos de Venezuela SA oil and building refineries and pipelines (PDVSA) (state oil company), 126, in, 129 132À34, 137 Chinese firms have received $96 billion in PVDSA funding ($53 billion) to import financing or promises of future lending, food, construct housing, and build 123À24, 128 health-care clinics, among other Chinese firms (19) received business in projects, 133 government-tied contracts since 2008, sovereign credit rating five notches below 137À38 investment grade, 124 Chinese oil companies are selling a Venezuela Railway Authority, 138 portion of their Venezuelan crude on Vogel, Ezra (Harvard professor), 47 the world market, 134 commitment to send 419,000 barrels of W oil a day to China ($15.3 billion/year Wang Cheng’an (former deputy director of revenue at $100 a barrel), 133, 135 Department of Aid to Foreign Countries contracts in, 139 of Ministry of Commerce), 104

bindex 25 September 2012; 12:43:14 202 INDEX

Wang Qishan (Chinese Vice Premier), Wu Keming (Wuhu’s deputy mayor), 7 40, 141 Wu Liangguo (head of Yichun City Bureau Wang Yi (CDB vice president), 67À68 of Land and Resources), 29 Wang Yongsheng (CDB’s vice president), Wu Xiaoli (interviewer), 75 33, 35 Wang Zhongbing (retired factory X worker), 29 XCMG Construction Machinery Co., Wen, Winston (Wen Jiabao’s son), 166 137, 139 Wen Jiabao (Premier), 9, 35, 141 Xie Ping (Central Huijin), 163 Wesizwe Platinum (South Africa), 99À100 Xi Jinping (China’s next president), 45 White & Case (US lawyers), 116 Xinhua article (2011), 97 win-win solution, 98, 136 Xinhua News Agency, 21 Wolfensohn, James (World Bank), 105 Xinjiang Goldwind Science & Technology, World Bank 98À99 Africa missed out on the global Xinxiang Kuroda Mingliang Leather manufacturing boom, 91 Products Ltd., 89 Africa needs to invest in infrastructure Xu Jianliang (general manger in Ethiopia), ($93 billion) every year, 104 87À88 assets and total loans (2011), 42 CDB soft loans to Chongqing, 11 Y China’s demand for oil pushed oil prices Yang Haibo (Loudi City Construction up 27.1 percent (2000 and 2007), 103 official), 16 China spends about 2.5 percent of GDP Yang Jiechi (Foreign Minister), 87, 97 on health, 14 Yao Zhongmin (CDB vice governor), 23 Ethiopia, loans to, 105 Yichun (city), 28À29 Ghana debt relief ($3.7 billion), 109 Yingli Green Energy, 149À50, 152À57, growth that loans produce, does not 172 consider, 113 Yuan Li (CDB vice president), 103 handbook on development banks, wrote Yu Guangyuan (economist), 49 the, 107 Yujiapu Financial District, 22 investment ($2.9 billion) in power and Yunnan Highway Construction, 30À31 infrastructure (1948 to 1969), 105 Yunnan Highway Development Investment James Wolfensohn focused on poverty Co., 15 reduction not infrastructure, 105 Yunnan Investment Group, 30 recommended that Asian countries open Yu Ruomu (Chen’s mother), 48 their banking system to competition Yu Xiangdong (Shanghai scholar), 7, 101 and close sick banks, 40À41, 53 Robert McNamara and focus on poverty Z reduction, 105 Z-Ben Advisors, 169 structural adjustment and stabilization Zenawi, Meles (Ethiopian leader), 87 programs, 106 Zeng, Jeffrey (Zeng Peiyan’s son), 166 World Economic Forum, 116, 132 Zeng Peiyan (Politburo member), 166 World Trade Organization (WTO), 65 Zhang Huarong (founder of Huajian Wuhan Urban Construction, 32 Group), 94À96 Wuhu (city), 5, 7À9, 12 Zhang Kai (purchasing manager), 95 Wuhu Construction Investment Co., 8À9 Zhang Xuguang (head of CDB Capital), 75 Wuhu Model Operating Method, 7À9, 22 Zhang Yuzhe (Caixin magazine), 167

bindex 25 September 2012; 12:43:14 Index 203

Zhang Zhiming (HSBC analyst), 30 Zhu Xiaohua (deputy governor of Central Zhao Ziyang (Premier), 49À50 Bank), 40 Zhou Enlai (Chinese premier), 108 Zijin Mining, 100 Zhou Tianyong (Economics Department of Zimbabwe, 179 the Central Party School), 56 Zornig, Alex (Tele Norte CFO), 158 Zhou Xiaochuan (head of the central Zou Fuqiu, 21 bank), 78 ZTE Corp. (telecommunications firm) Zhu Rongji (former premier), 4, 40, 46, 56, CDB line of credit ($15 billion), 60À61, 74 158, 162 Zhu Rongji’s tax collection reforms (1994), CDB line of credit ($45 billion), 66 19, 29 CDB loans cause global backlash, 162 Zhu’s three carriages, 40 in Venezuela, 128, 136À37

bindex 25 September 2012; 12:43:14 bindex 25 September 2012; 12:43:14