ADB's Work in the PRC

In 2022, the moderate economic expansion of the People’s Republic of China (PRC) was driven by industry and increasing infrastructure investment. However, restrictions on personal mobility due to the coronavirus disease (COVID-19) and stress in the property market weighed on the recovery. Affected by lockdowns, growth in services lagged the expansion in industry. Real estate investment fell, though nominal fixed asset investment grew due to investments in manufacturing and infrastructure.

The Asian Development Bank (ADB) has been working with the PRC since 1986. To date, ADB has committed 1,193 public sector loans, grants, and technical assistance totaling $42.9 billion to the PRC. Cumulative loan and grant disbursements to the PRC amount to $35.74 billion. These were financed by regular ordinary capital resources, and other special funds. ADB’s ongoing sovereign portfolio in the PRC includes 81 loans worth $12.32 billion.

ADB committed $1.58 billion for nine sovereign loans and $303 million for four nonsovereign loans and the Supply Chain Finance Program in 2022—excluding cofinancing. This was supplemented by $19.97 million—including cofinancing and excluding regional technical assistance—for 27 technical assistance projects. ADB combined its expertise in both sovereign and nonsovereign financing to help address environmental issues, boost climate resilience, promote age- friendly cities, strengthen public health systems, and support institutional development.

ADB committed a $209.6-million loan to support the ecological restoration of fragile landscapes and a $166.3-million loan to help encourage sustainable farming practices in the Yellow River Basin. To help mitigate ecological and environmental risks in the Mulan River Basin, ADB committed $191.2 million for developing action plans for county-level environmental management and climate change adaptation. A total of $35 million in nonsovereign financing was extended to the Bank of Qingdao for developing a sustainable ocean economy. ADB also committed $47.4 million in nonsovereign financing to the Bank of Huzhou to help scale up energy efficiency and reduce the carbon footprint of micro, small, and medium-sized enterprises.

To combat pollution within and beyond the PRC, ADB committed $194.8 million for rehabilitating sections of the Heilongjiang River. The investment will help develop economic and free-trade zones using green building principles.

To strengthen institutional capacity and improve governance, the bank committed $103.3 million for improving the sustainability, affordability, and safety of water and wastewater management services in Jiaxiang County

ADB committed $319.8 million to strengthen public health institutions in the Guangxi Zhuang Autonomous Region, Guizhou Province, and Shaanxi Province. The loan will improve the quality of women’s health services and provide training to nearly 2,000 women working in public health. To expand income-earning opportunities for women living in rural areas of Gansu Province, ADB set key measures and gender targets within a $151.2-million commitment for economic diversification and climate change mitigation

Guangxi Zhuang Autonomous Region, People's Republic of China.

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in the PRC as of 31 December 2022 was $1.66 billion representing 13% of ADB’s total private sector portfolio.

Operational challenges. Most of ADB’s lending operations in the PRC target the less-developed regions that have weak overall institutional capacity, for which reason operational challenges persist. An increasing number of projects are implemented by municipality and county governments that have limited experience with ADB procedures. More efforts are also required to promote learning and replication of ADB-supported projects within the PRC and with other ADB developing members.

Knowledge Work

Knowledge is central to ADB’s operations in the PRC. ADB continued to devote resources to identify and test knowledge solutions on complex sustainable development challenges and promoted sharing lessons from this experience to benefit other ADB members.

In the ADB-organized East Asia Forum, experts shared the progress in providing innovative and sustainable solutions for Asia’s decarbonization. Another regional forum was held to share knowledge from elderly care projects in Yichang, Hubei for possible replication in other cities in the region.

ADB continued providing timely policy advice on mitigating energy shortage, fostering growth, and tackling inequality in the PRC. Recommendations were provided to promote fiscal stability and sustain the country’s long-term growth. Publications advocated international best practices in strengthening economic and financial resilience to natural disasters and health emergencies, among others.