1. World Resources Institute Emerging Actors in Development Finance: Where Does China Stand? Xiaomei Tan, Ph.D. Senior Associate International Financial Flow and the Environment Project World Resources Institute October 20 th, 2010

2. Structure Overview of China’s overseas direct investment (ODI); Major players in China’s ODI; Current policy framework relevant to environmental and social standards; What the international society can do?

3. Trend of China’s overseas direct investment (ODI) In 2009: China’s annual ODI accounted for 5.1% of global annual ODI; Ranked first among developing countries; Ranked fifth globally Source: China Statistics Yearbook, 2006; 2007;2008; 2009 China Foreign Investment Annual Report

4. Which sectors does China’s ODI focus on? Source: China Statistics Yearbook, 2006; 2007;2008

5. What regions does China’s ODI focus on? Source: China Statistics Yearbook, 2006; 2007;2008

6. China’s ODI in Africa

7. Major players in China’s ODI MOC: Ministry of Commerce; SASAC: State-owned Asset Supervision and Administration Commission; NDRC: National Development and Reform Commission; SAFE: State Administration of Foreign Exchange; MOF: Ministry of Finance; CBRC: China Banking Regulatory Commission;

8. Procedure for certificates of approval Source: GEI, Environmental Policies on China’s Investment Overseas

9. Top three banks financing China’s ODI TypeBusiness scopeOverseas Lending, 2009 Major project, 2009 EXIM Bank of China Policy bank Mechanical and electric equipments, new and high tech products 174.2 billion$1680 million Ecuador Coca Codo Sinclair Dam China Development Bank Policy bank Infrastructure and energy 40.4 billion$35 million Malawi Cotton Project Bank of China Commerci al bank Construction contract and export processing 80.7 billion$1300million Angola oil well purchase Source: 2009 EXIM Annual Report; 2009 China Development Bank Annual Report; 2009 Bank of China Annual Report

10. Environmental protection policy related to financing YearName of policy/regulationsAgency that drafted the regulation 1995Regulations on Implementing Financing Policy to Promote Environmental Protection People’s Bank of China (PBC) 2007Provisions on Implementation of Environmental Regulations to Prevent Credit Risks Ministry of Environmental Protection (MEP); PBC; China Banking Regulatory Commission (CBRC) 2007Provisions on Strengthening the Social Responsibilities of Banking Institutes CBRC 2007Provisions on Financing Energy Efficiency Projects CBRC 2008Cooperation Agreement with IFC on Green Financing MEP 2009Guidelines on Corporate Social Responsibility of Banking Institutions China Banking Industry Association Source: China Banking Regulatory Commission (CBRC) website

11. Largest state-owned enterprises ranked by ODI Revenue, 2009Energy Bases China National Petroleum Corp. (CNPC) $ 187.43 billion Sudan (16.19 Mt with pipe) Kazakhstan (5 Mt with piple) Venezuela (3 Mt) Indonesia China National Offshore Oil Corp. (CNOOC) $32.25 billion Indonesia Australia Nigeria SinoHydro$15.72 billion South America Africa South-east Asia Source: 2009 Petroleum China Annual Report; 2009 CNOOC annual report ; SinoHydro Corporation Website

12. Environmental protection policy related to ODIs YearName of policy/regulations Agency that drafted the regulation 2005Approval Rules for Overseas Investment Ministry of Commerce(MOC) 2007Guidelines on Sustainable Management of Overseas Forests for Chinese Enterprises Bureau of Forestry (BOF) and MOC Currently being built Guidelines on Environmental Actions of Chinese Overseas Enterprises Ministry of Environmental Protection (MEP), MOC and State-owned Asset Supervision and Administration Commission (SASAC) Source: Ministry of Commerce (MOC) website

13. What the international society can do? Provide analytical excellence and technical expertise; Offer best practice examples; Direct engagement with key decision-makers; Convene discussions with NGOs, the private sectors and policymakers on China’s ODI.