Pictured is a portion of the Great Wall where the historic Silk Road used to pass through. (Photo : REUTERS)
China has launched a $40-billion fund to finance Silk Road projects covering infrastructure, resource development, and industrial and financial cooperation with other countries.
Called the "Silk Road Fund," it is part of a national strategy to revive centuries-old land-based and maritime routes that link Asia, Europe and Africa.
China's Silk Road projects include the Bangladesh, China, India, Myanmar (BCIM), the Maritime Silk Road (MSR), the Central Asia route connecting China to Europe through Central Asia, and the Pakistan-China Economic Corridor in Pakistan-occupied Kashmir.
The initiatives to be funded were proposed by China in 2013 through the so-called the "Silk Road Economic Belt and the 21st Century Maritime Silk Road."
Observers say that the fund is aimed at expanding China's strategic influence and counter the United States' Asia-Pacific pivot.
Silk Road Fund Co. Ltd., set up on Dec. 29 in Beijing, held its first board meeting in late January. Accoding to the PBOC, its priority is to seek investment and provide investment and financing services for the initiatives.
PBOC Governor Zhou Xiaochuan said that the fund is denominated in foreign currencies with some to be invested overseas. He added that it is market-oriented and welcomes investment by investors.
The fund is jointly supported by China's foreign exchange reserves, China Investment Corp., the Export-Import Bank of China and China Development Bank. It is separate from the China-led Asian Infrastructure Investment Bank (AIIB) meant for financing such projects as airports, high-speed railways and roads.
China also launched the BRICS Bank with Brazil, Russia, India and South Africa.
