This supplied photo shows the logo for next year's Group of 20 leaders' summit in Osaka.(Kyodo)

Japan eyes new infrastructure investment rules for G-20

TOKYO - China has not openly opposed Japan's proposal in working-level preparatory meetings, but Japanese government sources said it is too early to say Beijing is willing to accept the proposed rules to increase transparency of contracts and giving due consideration to the debt repayment capacity of countries receiving investments, they said.
In addition to the rules for ensuring transparency and responsible financing, Japan hopes to adopt the principle of ensuring "openness" of facilities without imposing restrictions on usage and "economic efficiency" by making infrastructure durable enough for long-term use, the sources said.

With Japan and China's relations continuing to improve, Tokyo also expects the new rules to lay the groundwork for deeper cooperation between the two countries in foreign infrastructure projects.

Prime Minister Shinzo Abe is shifting toward conditional cooperation with Chinese President Xi Jingping's "Belt and Road" infrastructure initiative under which Beijing wants to expand infrastructure networks in Asia, the Middle East, Europe and Africa to achieve its goal of connecting nations along the ancient Silk Road trade routes more closely.

Some of China's infrastructure financing projects have been criticized for burdening recipient countries with debts that they cannot repay, forcing them into concessions in exchange for debt relief.

China has been bolstering its economic clout with foreign investments, signing a memorandum of understanding with Italy last month to jointly advance the Belt and Road projects, the first time Beijing has struck a deal under the cross-border initiative with a Group of Seven industrial power.

Leaders of some major countries attended the second summit of the Belt and Road forum held in Beijing through Saturday.

Source: https://mainichi.jp/english/articles/20190429/p2g/00m/0bu/005000c