China is ready for $124b investment

Xi also announced new lending schemes

Beijing, May 14: China on Sunday described its new Silk Road initiative as “a project of the century” with President Xi Jinping pledging to pump in a whopping $124 billion for projects that are part of the ambitious venture linking the country to much of Asia, Europe and Africa.

“We should build an open platform of cooperation and uphold and grow an open world economy,” Mr Xi said in his opening address outlining China’s vision.

Mr Xi announced that China will contribute an additional 100 billion yuan (about $14.5 billion) to the $40 billion Silk Road Fund to scale up financial support for the Belt and Road Initiative.

To provide more funding for his pet initiative, Mr Xi stated that China will also encourage financial institutions to expand their overseas yuan fund businesses to the tune of to 300 billion yuan (about $44 billion).

In addition to that, he also announced special lending schemes worth $56 billion to support cooperation on infrastructure, industrial capacity and financing.

Mr Xi also pledged an additional assistance worth 60 billion yuan ($9.5 billion) for developing countries and international organisations participating in the initiative to improve people’s well-being over the next three years.

Xi said the Belt and Road initiative is “a project of the century” that will benefit people across the world.

China will also set up 50 joint laboratories with countries participating in the Belt and Road initiative to enhance cooperation on innovation, he said.

The B&R includes a maze of roads and port projects.

It is about connecting culture. It is about connecting communities it is about enriching economies and improving the standard of living of people.

— CHRISTINE LAGARDE, MD, IMF

I know the US has been among those countries apparently most skeptical of the ‘Belt and Road.’ Simply put, the more China can demonstrate that the ‘Belt and Road’ initiative is open to outside participation in this way, the more it will be embraced by global and even American firms and suppliers.

— HENRY PAULSON, former US Treasury Secretary

For the German companies, it’s always relevant that they know what is going to be built and that the procedures to be part in the buildings are the same for every company and every country. Of course Germany stands for transparency, Germany stands for a level playing field, Germany stands for fair conditions for workers . ... We always think that’s important and we always fight for it.

— BRIGITTE ZYPRIES, German Economy minister