China to Finance Silk Road Project by Investing US$ 40 Billion
To further boost connectivity across Asia, China is planning to finance the Silk Road infrastructure by contributing US$ 40 billion to set it up in the country’s efforts to spread its economic growth. China is offering financial and trade incentives mostly to Central Asia but to countries in South Asia as well. this will back efforts in the plans to resurrect the old Silk Road trading route that once brought trading between the Mediterranean and China.
The fund will be used for investing in resources, industrial, financial cooperation and infrastructure together with other projects. A five point proposal will also be introduces on promoting interconnecting development in the Asia-Pacific region especially with countries such as Cambodia, Bangladesh, Mongolia, Laos, Pakistan, Myanmar and Tajikistan. The Silk Road fund is open and is welcoming investors from Asia and to actively participate in projects.
Although it was not clear on how the fund will work after it started operations or where the fund will be based, but sources say that it would likely be in China. the project will also focus on the China Silk Road Economic Belt and in the 21st Century Maritime Silk Road initiative that will be the one responsible in building roads, railways, sea ports and airports across Central Asia and South Asia.