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With New Funds, China Hits a Silk Road Stride

Posted December 05, 2014

Under Economic Issues, International Trade Issues

(Zhang Yuzhe – Caixin Online)

Initiatives that extend financial support to infrastructure projects across Asia should help China win business and influence

China’s ambitious plan to expand trade links westward into Central Asia in the spirit of the ancient Silk Road is taking shape now that the government has decided to shift foreign currency into a special fund.

The State Council will tap the nation’s foreign currency reserves for about 65 percent of a new US$ 40 billion infrastructure-and-trade financing mechanism called the Silk Road Fund. [...]

The Silk Road Fund project is one of four outbound investment initiatives winning strong financial support from Beijing in recent months. These projects will supplement similar multibillion-dollar funds launched by China in recent years to support development in Africa and Southeast Asia. Read more here.