On The Progress, Challenges And Countermeasures Of Financial Cooperation Under The Framework Of China-Central And Eastern Europe Cooperation

China's financial cooperation with Central and Eastern European countries is the financial support and guarantee promoting the “16+1 Cooperation”.It is also a practical example for China to carry out sub-regional cooperation under the support of financial connectivity.This paper attempts to conduct research on the progress of the “16+1 Financial Cooperation”,analyze the current obstacles and provide suggestions for the development of the next phase of financial cooperation,hoping that this it will provide practical inspiration for promoting the “One Belt and One Road” initiative.The research of this article mainly analyzes from three dimensions,which are investment and financing cooperation,financial institution cooperation and currency cooperation.In the field of investment and financing,the cooperation features include an investment and financing toolbox,method of government-led and state-owned financial institutions' participation,concentration on traditional investment and financing channels.The challenges include dealing with financing pressure and risks that are mainly borne by China,low rate of private capital participation and direct financing in the international market.In the field of institutional cooperation,the cooperation features include full overseas deployment of Chinese-funded institutions,the bilateral cooperation between China and EBRD and the multilateral platform of China-CEEC Inter-Bank Association.The development task is to enhance the business level of Chinese-funded institutions,learn from the experience of the European Bank for Reconstruction and Development and enhance the influence of multilateral cooperation platforms.In terms of monetary cooperation,China has signed bilateral currency swap agreements with some Central and Eastern European countries,established a RMB clearing bank and conducted bond market cooperation in Hungary.It has also signed cooperation memoranda of understanding with banks and bonds management institutions in various countries.The cooperation in this field is characterized by the primary level of cooperation and a development method of breaking ice from key cooperation country.“16+1 financial cooperation” currently faces three major obstacles:(1)geopolitical queries and pressures from EU;(2)high financing pressures,uneven distribution of investment countries,and conflicts of rules from China and EU;(3)Insufficient influence and lack of risk prevention mechanism in Institutional and monetary cooperation.Four suggestions are proposed:(1)improve the financial cooperation system and coordinate between the rules of China and EU to enhance mutual political trust;(2)expand financing channels and promote capital and capital market cooperation;(3)increase currency swaps and promote cross-border use of RMB;(4)Strengthen policy coordination and regulatory cooperation,and build a regional financial safety net.