2017 Doklam border fallout in Mumbai: China's top bank froze loans worth $185 mn, told party cadre to alert embassy, Pg1

Key Highlights:

• During the 2017 Doklam standoff, the Industrial and Commercial Bank of China (ICBC) Mumbai branch froze 11 approved loans and bond investments totaling $185 million.
• This action, revealed by the "China Capital" investigation led by the International Consortium of Investigative Journalists (ICIJ), impacted ICBC's operating revenue by approximately $6.36 million.
• Internal documents show ICBC organized Chinese Communist Party members in its Mumbai branch to maintain communication with the Chinese embassy and consulate.
• The Doklam standoff, lasting 73 days, involved Indian and Chinese troops at the tri-junction between India, Bhutan, and China.

Detailed Insights:

• The ICBC Mumbai branch proactively reduced its exposure to loan and investment risks due to the Indo-China border impasse.
• The "China Capital" investigation is based on 4.8 million documents from ICBC's London branch, obtained by a hacking group and leaked to the ICIJ.
• ICBC, the world's largest bank by asset size, is one of China's four major state-owned financial institutions.
• The investigation highlights the extensive influence of the Chinese state over its economic infrastructure and financial institutions.
• ICBC's internal reports indicate that the Mumbai branch formulated contingency plans and reported to headquarters during the "tense period of the border standoff."
• The bank's internal documents also reveal that ICBC's London operations served as a financial hub for entities linked to sanctioned Russian and Belarusian business owners and China’s political elite.
• ICBC managers reportedly weigh commercial deals against their ability to advance Beijing’s economic agenda, including policies like Going Global and the Belt and Road Initiative.
• The Doklam standoff began in June 2017 when People’s Liberation Army (PLA) troops attempted to construct a road in disputed territory, leading to a confrontation with Indian forces.

Key Concepts Involved:

• Doklam Standoff: A 73-day military confrontation in 2017 between India and China over a disputed plateau near the tri-junction of India, Bhutan, and China.
• Industrial and Commercial Bank of China (ICBC): The world's largest bank by assets, a state-owned commercial bank of China, playing a significant role in its economic and geopolitical strategies.
• International Consortium of Investigative Journalists (ICIJ): A global network of investigative journalists that collaborates on in-depth reporting projects, often involving leaked documents.
• Belt and Road Initiative (BRI): A global infrastructure development strategy adopted by the Chinese government in 2013 to invest in nearly 150 countries and international organizations.