China in Multi-Billion Dollar Silk Road Drive

In a bid to enhance co-operation in direct financing, investment, loans, and cash management, China Shipping Group and the Bank of China have signed a US$14.4bn global strategic co-operation agreement.

This collaboration is a move to implement China's 'One Belt and One Road' initiative, which aims to link China with Europe, Africa, and Southeast Asia, according HIS Maritime 360.

Thailand has recently proposed its ‘Grand Canal’ as part of the Maritime Silk Road plan in a bid to allow ships to avoid sailing down the Malacca Strait, and thereby cut travel times by 48 hours.

China Shipping and the Bank of China have a long history of co-operation, and the bank has provided loans and credit lines, as well as guarantee for the bonds issued by China Shipping.

Currently, the Bank of China is the seventh largest bank in terms of ship financing in the world.

(Source: China Daily)