The China development bank and sustainable development

Abstract

In this article, the author presents an empirical study of sustainable banking in China, and examines the flagship China Development Bank (CDB). The CDB is directly supervised by the State Council of the People's Republic of China and is one of the largest state-owned financial institutions in the country. Its overseas lending is growing rapidly and it increasingly acts as a global player, influenced by a variety of international actors. Using the mercantilist framework, the author investigates how the CDB's social policies diverge from those set by the Chinese authorities. The analysis discusses the CDB's policy variations that are not in line with government interests or prescribed directly by governmental bodies. It concludes that the bank has been active in developing and establishing its own corporate strategy for implementing the concept of sustainable development, to promote balanced development of the economy, society and the environment. That strategy contains the norms and rules set by Chinese regulatory agencies with regard to social and environmental areas, as well as important elements of international practice of corporate responsibility and sustainable funding. The CDB is most likely driven by its desire to be considered internationally as a good corporate citizen, and often acts independently from governmental guidance, which in some ways undermines mercantilist perceptions.