People's Republic of China: Study of Cross-Border Investment in the People's Republic of China (PRC) and its Impacts on Business Practices of PRC Multinational Enterprises for Promoting Social and Eco (ADB-58293-001)

Countries
  • China
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 12, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of China - National Development and Reform Commission
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
  • Law and Government
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 0.30 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 0.30 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS May 13, 2025

Disclosed by Bank Dec 23, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, this TA will support the People's Republic of China (PRC) and other ADB's developing member countries (DMCs) through a study of the cross-border investment in the PRC and its impacts on business practices of Chinese multinational enterprises (MNEs) for promoting social and economic development. Knowledge sharing of the lessons learnt from the study will be organized. For this TA, cross-border investment refers to the utilization of long-term foreign capital, covering long-term international loans and bonds, official development assistance (ODA), and foreign direct investment (FDI). The TA will support the improvement of business practices of Chinese MNEs in the PRC and, through their investments, in other countries, strengthening Chinese MNEs' contribution to sustainable development of the PRC through trade and investment channels. The TA's outcome will be improved business practices of Chinese MNEs promoted, which will be beneficial for the PRC and for promoting social and economic development for other DMCs.

The outputs and activities of this TA will inform government policies on cross-border investment and shape business practices for Chinese MNEs to optimize their impact on social and economic development. By providing improved knowledge and capacity building in these areas, the TA can support the PRC and other DMCs toward achieving SDGs. The TA will produce (i) an assessment of cross-border investment and business practices of MNEs for promoting social and economic development of the PRC; (ii) a roadmap for improved business practices for Chinese MNEs for promoting social and economic development; and (iii) capacity-building and knowledge-sharing activities to enhance knowledge and readiness of Chinese MNEs to improve their business practices. These TA deliverables will enhance the impact of MNEs' strong support for high-quality development of the PRC.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

According to the Technical Assistance Report, the Risk Categories are:

Environment: Not Applicable
Involuntary Resettlement: Not Applicable
Indigenous Peoples: Not Applicable

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The TA financing amount is $300,000, which will be financed on a grant basis by ADB’s Technical Assistance Special Fund (TASF-other sources).


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Project Officer: Yothin Jinjarak
Designation: Senior Economist - Asian Development Bank
Email: yjinjarak@adb.org

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

How it works

How it works