What are the mandate and vision for the Fund?
While Chinese President Xi Jinping was visiting countries in Middle Asia and Southeast Asia in September and October 2013, he put forth the idea of working together for the grand initiative known as the Silk Road Economic Belt and the 21st Century Maritime Silk Road. This Initiative has attracted great attention from the international community. President Xi Jinping announced that China would contribute US$40 billion to establish Silk Road Fund at the APEC Dialogue on Strengthening Connectivity Partnership on November 8, 2014. On December 29 the same year, the Fund was officially established in Beijing. Setting up the Fund is a major component of the efforts for implementing the Belt and Road Initiative.
The Fund has a philosophy of openness, inclusiveness and mutual benefit. It provides funding and financing support to strengthening economic and trade cooperation, and bilateral and multilateral connectivity between China and relevant countries and regions. It works closely with domestic and foreign enterprises and financial institutions to promote development and prosperity of both China and countries and regions involved in the Initiative.
On May 14, 2017, President Xi Jinping announced at the opening ceremony of the Belt and Road Forum for International Cooperation that China will scale up financial support for the Belt and Road development and commit an additional 100 billion RMB to the Silk Road Fund. After this injection, the capital strength of the Silk Road Fund will be further enhanced. It will be able to provide stronger, multi-currency and sustainable investment and financial support to the Belt and Road Initiative.
What is the Fund's positioning on the Belt and Road Initiative?
The Fund is established in accordance with the Company Law of the People's Republic of China as a medium to long-term development and investment fund with the goal to promote mutual development and prosperity of China and other countries and regions. Like a medium to long-term private equity fund, the Fund makes outbound investment in a variety of forms, primarily through equity investment in sectors such as infrastructure, resources and energy development, industrial capacity cooperation and financial cooperation.
Why does the establishment of the Fund reflect the development concept of mutually beneficial cooperation?
The Belt and Road Initiative provides great promise and opportunities for the development of the participating parties. The demand for infrastructure development and the need for industrial cooperation and development are great in the Belt and Road area. Addressing these issues could create many employment opportunities in line with the common efforts and expectations of the international community. China has gained quite a bit of experience since the reform and opening up that could be useful for helping relevant countries, especially the emerging markets and developing countries, to promote development. Leaders of involved countries have gradually reached a consensus on the Belt and Road Initiative. The establishment of the Fund is to take advantage of this opportunity to provide corresponding financial support and services. In this way, the Fund demonstrates the realization of its philosophy of cooperation for mutual benefit.