Many would argue that the China Development Bank has single handedly been the driving force behind many of China’s greatest infrastructure projects over the past thr

Many would argue that the China Development Bank has single handedly been the driving force behind many of China’s greatest infrastructure projects over the past three decades.

It is these very infrastructure projects such as the ‘Three Gorges Dam’, which is the largest hydropower facility in China that has accelerated its economic rise. 

The China Development Bank was founded in March of 1994 as a state-owned enterprise. Its objective was to finance communications and infrastructure projects that the government was constructing as it opened up to foreign markets. 

Beyond just infrastructure programmes, the bank has also played larger roles in the economy as it issued billions of renminbi in the form of loans which have allowed for continued economic growth even in times of distress such as the recent Covid-19 pandemic.

The Bank has also assisted the central government in paying off bad debts and furthering the rate at which international financial standards and liberal banking systems have been implemented to further China’s economic accessibility and ease of business.

By entrenching itself within the process of development in China, the Chinese Development Bank today has expanded to the point where it is behind in excess of 4200 significant economic projects related to infrastructure, communications, and other industries. 

As of 2010, the CDB held USD 687.6 Billion in loans, a figure that was twice that of the World Bank, signifying its immense scale and influence. 

As it continues to expand, the CDB is likely to significantly influence China’s long term growth prospects as it now contends with the USA for economic hegemony.

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