NDB-funded metro line project facilitates modern development of Chinese city

China's first transportation loan project granted by the BRICS New Development Bank (NBD), a metro line crossing through the industrial city of Luoyang, Henan Province, has been instrumental in local efforts to cut emissions and boost employment.

In 2018, the NDB approved a 300 million U.S. dollar sovereign loan to support the construction of Luoyang City's Metro Line 1. The line officially began operation in 2021 with 19 stations, spanning a total length of over 25 kilometers.

It was the first collaboration between the bank and Henan Province, situated in the country's central region.

"The successful withdrawal and payment of this project is the first successful withdrawal case of the New Development Bank in China," said Fang Haiyang, manager of the Finance and Accounting Department of the Luoyang City Rail Transit Group.

In February this year, officials and experts convened in Beijing to review the project's outcomes and lessons learned. According to an evaluation by the Independent Evaluation Office of the New Development Bank, the project was rated as "successful".

Bank representatives said the project stands as a remarkable success, exceeding expectations in terms of its impact on livelihoods as well as the environment.

"This project itself has been quite successful, particularly in terms of enhancing the mobility of communities of people in the city of Luoyang, in terms of the business development around the metro line that the NDB helped finance in the city, but also equally, critically, the reduction in green house gas emissions as a result of the construction of the metro," said Ashwani Muthoo, director general of the Independent Evaluation Office of New Development Bank.

Data from the local government shows that the metro line project generated nearly 10,000 jobs, reduced carbon emissions by 32,800 tons on an annual basis, and transported more than 53 million passengers by the end of 2023.

"The success of the project has strengthened foreign investors' recognition of Henan and confidence in investing in the province, facilitating the province's ability to attract and utilize foreign investment more effectively so as to better promote the modern development of the province," said Li Ming, deputy director of the Henan Provincial Department of Finance.

The New Development Bank stands as a cornerstone of the BRICS cooperation framework. With a focus on infrastructure, sustainability, and environmental protection, the bank plays a key role in driving growth across emerging and developing economies.

The 16th BRICS Summit is being held in western Russia's Kazan City from Tuesday to Thursday.

BRICS began with Brazil, Russia, India, China and South Africa, and has now evolved into an influential international cooperation mechanism with an expanded membership.

In addition to the countries that officially joined the BRICS family on Jan 1, 2024, over 30 countries like Thailand, Malaysia, Türkiye and Azerbaijan have either formally applied for or expressed interest in membership.

NDB-funded metro line project facilitates modern development of Chinese city

German car manufacturers and industry associations are urging the European Commission (EC) to reverse its plan to impose hefty import tariffs on Chinese electric vehicles (EVs), warning the move could hurt local industry and boomerang against the competitiveness of the European Union (EU).

The EC announced on Oct 4 that it passed a vote to impose punitive tariffs on Chinese battery EVs. Though the Commission said it had secured necessary support from member states, 12 EU members abstained from the vote and five voted against the decision.

The Commission's announcement on the controversial tariffs has provoked an outcry from Germany's automotive industry. They criticized that the move may hurt the competitiveness of German carmakers in the Chinese market.

"Over the years, German automakers have deepened their involvement in the Chinese market, and have especially reached close strategic cooperation relationships with many Chinese EV makers. Among the products on which the EU is planning to impose countervailing duties this time, EVs produced by Sino-German joint ventures actually account for a considerable share. So, in this context, I think German companies will continue to put pressure on the EU to safeguard their own interests," explained Cui Hongjian, director of the Center of European Union and Regional Development Studies with Beijing Foreign Studies University.

He also noted that the EU's decision to impose tariffs on Chinese EVs stems from its adherence to the U.S. economic security strategy.

"However, even the automotive industry in Germany, and some European companies, have long been under pressure from the United States, especially during the previous Trump administration. The U.S. cited a reason that European cars were selling well in the North American market and were more competitive than American cars. Consequently, the Trump administration sought to levy extra taxes, such as steel tariffs, on Germany and several other European nations. Against this backdrop, I believe that both German car manufacturers and governments of European countries should know better that they need to strengthen cooperation with China to ensure the development of European automotive companies and to continue promoting green transformation in the future. If they blindly follow the United States politically without considering their own interests, I think this will not only bring greater challenges in transforming European car manufacturers in the future, but also largely undermine their capacity and deny them the chance for extensive collaboration with the Chinese automotive sector," said Cui.

German carmakers pressure EU leaders to reverse tariffs on Chinese EVs

German carmakers pressure EU leaders to reverse tariffs on Chinese EVs