Preface

The current wave of globalization is faced with profound changes and it is imperative for nations worldwide to enhance cooperation. This is why most countries embrace China’s Belt and Road Initiative, which proposes a grand vision: to connect Eurasia and the wider world into one huge market for mutual development and common prosperity.

Such a process creates a need for trillions of dollars of investment. Finance is the heart of modern economy, and an efficient multi-layered financial system must be established so as to provide sufficient capital demand for the Belt and Road. The prevailing international financial system came into being after the collapse of the Bretton Woods system, and its shortcomings became all too apparent after the 2008 financial crisis.

Therefore financial institutions such as the Asian Infrastructure Investment Bank (AIIB) and the Silk Road Fund have been created with China’s initiation to repair this short stave. Financial cooperation at government levels in the region is also being strengthened, and cooperation in currency swapping, capital markets, and financial infrastructure is improving steadily. Meanwhile, international cooperation in financial regulation is forging ahead in order to improve the ability of the whole region to ward off or reduce financial risks. As financial cooperation within the region deepens, this “heart” of the modern economy is providing steady impetus to the Belt and Road.