China is investing in Turkey. China has pushed the button to quadruple its investment, which is now at the level of one billion dollars. capital flows from China in the period it is in Turkey’s crisis has accelerated.
China’s giant project “Belt and Road” will be an important center in Turkey. China was under the spotlight in Turkey within this framework. On the one hand hastened the other hand, financial flows to Turkey opening the domestic market to Turkish goods. Simultaneous China increased interest in the work carried out by Turkish companies, the involvement of Chinese companies in Turkey has intensified. Chinese companies examined the Turkish industry, both new investments, as well as taking up difficult companies to increase their activities were determined to stand up.
IN THE FOCUS OF CHINA BANK OF TURKEY
Chinese officials Belt and Road Project in Turkey is a very important position, while emphasizing Turkey’s bridge to Europe from Asia have opened emphasize that strengthening the strategic position of Turkey. In this context, interest in Turkey has increased at a Chinese bank.
Garanti Bank Shanghai Representative Noyan Rona said in a statement with regard to the interest of China to Turkey, he reported that two Chinese banks China’s export insurance company in addition to increasing its activities in Turkey Sinosure’s funding support and even merchandise trade started to be more effective. According to Deutsche Welle Turkish news Rona, in this case he stated that provides support for Chinese companies to guarantee loans for their activities in Turkey. Thus, he stressed that Chinese companies gained the ability to act in a more relaxed investment moves in Turkey.
China’s export insurance company through its indirect operating phases, such as promotion in Turkey direct saving in that begin to assume the risks of Turkish companies, “organizations which merely makes the introduction to the Chinese company for earlier Turkey has now started to make more direct moves are taking a risk. Sinosure active attitude assumption, China He is helping Eximbank and China Development Bank to be more courageous about project financing in our country. Sinosure also establishes cooperative relations with our country’s banks. ”
LOANS TO TURKISH BANKS
Meanwhile, it was learned that a private Turkish bank provided a loan of 200 million dollars from China Development Bank. It was also announced that a state-owned bank provided loans from the financial institution China Eximbank, which provided loans to exporters to transfer funds to foreign trade.
China’s investments made by Turkey in the last 10 years the amount of around one billion dollars. Cui Wei, Consul General of China in Istanbul, gave information about China’s new investments. Speaking last week BloombergHT Ceren petition Consul General Cui Wei, as of year-end exceed four billion dollars of Chinese investment in Turkey reported that they expect. This means quadrupling existing investments.
There are areas of concern among the first infrastructure investments in China, Turkey. They are negotiating to get the share of the Italian company at Yavuz Sultan Selim Bridge in Istanbul. In addition, the Chinese companies met with a large number of companies in difficult situations, the factory to come to the point of closure of the capital and new investment to continue production is expressed.
EUROPE AND AFRICA produce SELL IN TURKEY
The most important factor that increases the interest in China’s proximity to Europe, Turkey, the Middle East and the position advanced labor and appealing to African countries. The Belt and Road Project to China’s consistent position that the experts noted, stressing that they want to build China’s continuous trade with Europe by making production line in Turkey. China’s only that experts accelerate their investment, not all countries in the region Turkey, Turkey can receive the lion’s share of Chinese investment in relations with China of economic management for that they say you should do work by setting up a special team.
CAPITAL IN CHINA
Recalling that China is an export surplus and one of the countries with the largest foreign exchange reserves in the world, economic experts and economic bureaucrats made the following assessment:
“The Chinese income investments rather than lend money to the country. Due to the current economic crisis, many Turkish companies difficult. Capital is insufficient. The Chinese are watching Turkey closely on this issue. They weaving course scrutinize. Chinese companies have factories that are about to shut down if the focus on Turkey stands up . Production increases. can rise to higher than their estimates, Chinese investments. this is both Turkey’s and China’s favor. Unemployment also need to avoid. Developments are positive. more needs to accelerate. ”
CREDIT AND CAPITAL FLOWS SPEED FROM CHINA
The flow of capital from China to our country has accelerated recently. Especially after the tensions with the US, the country’s crisis of balance of payments in four separate months in the last year brought the urgent need for capital. Bloomberg name of a source of funds in June China’s central bank, who requested anonymity worth a billion dollars in Turkey reported that it transfers. According to the report, the resources transferred, Turkey and TL signed in 2012, the Chinese central bank – yuan currency swap agreement (swap) is transferred within the scope of the distinction of being the first high amount of funds to Turkey.
In March, Turk Eximbank signed a $ 350 million loan agreement with the Chinese giant ICBC Turkey Bank. In September VakifBank, China Exim one year term loan agreement with Bank 140 million dollars to be used in the financing of foreign trade between Turkey and China did.