Chinese firms pump $20b into Silk Road projects

Chinese President Xi Jinping and Polish President Andrzej Duda (right) eating Polish apples as they greeted the arrival of the first China Railway Express train that rolled into Warsaw on Monday. Under the Silk Road programme, China is investing in i
Chinese President Xi Jinping and Polish President Andrzej Duda (right) eating Polish apples as they greeted the arrival of the first China Railway Express train that rolled into Warsaw on Monday. Under the Silk Road programme, China is investing in infrastructure projects in central, west and southern Asia, and in Africa and Europe.PHOTO: AGENCE FRANCE-PRESSE

President Xi lauds 'One Belt, One Road' initiative during visit to Uzbekistan

SHANGHAI • Chinese companies invested nearly US$15 billion (S$20.1 billion) in countries participating in Beijing's new Silk Road initiative last year, up one-fifth from 2014, President Xi Jinping said in Uzbekistan, lauding a scheme that is one of his key foreign policies.

Under the programme, announced by Mr Xi in 2013, and also known as the "One Belt, One Road" programme, China aims to invest in infrastructure projects, including railways and power grids, in central, west and southern Asia as well as Africa and Europe.

China has dedicated US$40 billion to a Silk Road Fund and the idea was the driving force behind the US$50 billion Asian Infrastructure Investment Bank.

In comments carried by state media late on Wednesday, Mr Xi said China's trade with countries participating in the new Silk Road exceeded US$1 trillion last year, accounting for a quarter of its total foreign trade.

"The Belt and Road Initiative's primary planning and deployment have been completed and is now stepping onto the stage of taking root and intensive cultivation for sustained development," Mr Xi told the Uzbek Parliament.

Regions like the Balkans and Central Asia are key to the project, the government has said. Mr Xi's trip to Uzbekistan followed trips to Serbia and Poland. The initiative envisages the revival of the ancient Silk Road routes from China to Europe to open new trade markets for its firms as the domestic market slows.

Forty-nine countries along the economic corridor invested US$8.2 billion in China last year, up 25 per cent from the previous year, Mr Xi said. More than 70 countries and international organisations have taken part in the initiative, he added.

Mr Xi will attend a meeting, in the Uzbek capital Tashkent, of the Chinese- and Russia-led Shanghai Cooperation Organisation security bloc. China has long been concerned about links between Islamist militants in Central Asia and those Beijing accuses of promoting separatism in the violence-prone far western region of Xinjiang.

State media said China and Uzbekistan have agreed to deepen their counter-terrorism cooperation and ensure the safety of pipelines into China from Central Asia which are vital to Chinese energy security.

"China and Uzbekistan share concerns about terrorism, with extremists in the two countries sometimes conspiring together," the official China Daily said yesterday, noting that extremists have been known to enter Xinjiang from Uzbekistan.

REUTERS

A version of this article appeared in the print edition of The Straits Times on June 24, 2016, with the headline 'Chinese firms pump $20b into Silk Road projects'. Print Edition | Subscribe