News Digest

China to establish $40 billion Silk Road infrastructure fund

China will contribute $40 billion to set up a Silk Road infrastructure fund to boost connectivity across Asia, President Xi Jinping announced on Saturday, the latest Chinese project to spread the largesse of its own economic growth. China has dangled financial and trade incentives before, mostly to Central Asia but also to countries in South Asia, backing efforts to resurrect the old Silk Road trading route that once carried treasures between China and the Mediterranean. The fund will be for investing in infrastructure, resources and industrial and financial cooperation, among other projects, according to Xinhua.

Such a framework accommodates the needs of various countries and covers both land and sea-related projects.

Chinese President Xi Jinping

The goal of the fund is to “break the connectivity bottleneck” in Asia, state media quoted Xi as saying during a meeting in Beijing with leaders from Bangladesh, Cambodia, Laos, Mongolia, Myanmar, Pakistan and Tajikistan. It was not immediately clear precisely how the fund would work, when it would start operations or where it would be based, though in all likelihood it would be China. Asia-Pacific government ministers also endorsed plans to deepen regional anti-graft efforts, in a move that dovetails with a high-profile corruption crackdown within China’s Communist Party.