Chinese banks have been charged with money laundering around the world
Chinese banks are the second largest economy in terms of tropical rain forests, according to a study that casts Beijing’s ambition to become a global leader in the fight against climate change.
A study by Forests & Finance, an international non-governmental organization, found that from January 2016-April 2020, Chinese corporations provided $ 15bn in debt repayment and subscription services to companies that sell arbitrary logging products in Southeast Asia. , Brazil and Africa.
Chinese companies that sell inputs and paper, palm oil, soybeans, rubber and lumber operate mainly overseas and are often backed by Chinese banks, demonstrating what foreign countries are doing. Brazil provided the largest amount of money in connection with deforestation, but most of the debt was made in that country.
The findings, which compare the amount the company borrowed on endangered forest products, were in line with increased interest in Beijing in preventing greenhouse gas emissions. President Xi Jinping he promised last year for China to reach “political neutrality” by 2060.
Climate regulators have said, however, that Chinese foreign trade and the leasing of destructive weapons and trade are against Xi’s goal.
The State Bank of China and Commerce Bank of China provided the largest amount of cash and drafts, at a cost of $ 2.2bn. Sinochem, China’s state-run medical team, received the most, earning $ 4.6bn, most of it from its rubber products.
Sales of forest and economic integration products account for about two-fifths of the world’s rapid logging operations. Studies show that it contributed about 5% of the annual greenhouse gas emissions through self-destruction.
“The global economy is deeply affected by climate change but continues to neglect its banks to help destroy tropical forests,” said Tom Picken, chief of Forests & Finance’s campaign.
Picken explained that the purpose of the fund is to show the amount of money in Chinese banks that fell below the standards of “green money” and is urging Chinese banks to take strict measures to prevent price losses.
“Currently there is little impact on banks that are found to be aware of illegal logging abroad,” he said.
In 2017, Chinese banks found the eurozone being the greatest in the world with wealth. There are also indications of its growth in other developing lands.
A research report from the Bank for International Settlements last year found that Chinese banks have been repaying more than half of the world’s developing and emerging debt. The newspaper also reported that their rental activity was “closely linked to commercialization”.
Where climate change meets business, markets and politics. See the FT publication here