Silk Road Fund

Abstract

After President Xi Jinping put forward the proposal of the Belt and Road Initiative in 2013, under the general regulations of the Central Committee of the Communist Party of China, the National Development and Reform Commission, the Ministry of Finance, and the People’s Bank of China have conducted research on establishing the Belt and Road investment and financing mechanism. On November 4, 2014, at the eighth Meeting of the Leading Group of Financial Leaders of the Central Committee of the Communist Party of China, after listening to the report of the above department at the eighth Meeting of the Central Financial and Economic Leading Group of the Communist Party of China, the members discussed the establishment of the Silk Road Fund. The General Secretary of the Central Committee of the Communist Party of China, the President of the country, the President of the Central Military Commission, and the head of the Central Financial and Economic Leadership Group, Xi Jinping, pointed out that the establishment of the Silk Road Fund is to use China’s financial strength to directly support the Belt and Road Initiative, that attention should be paid to international practices, and that lessons should be drawn from the long-term theoretical and practical experience accumulated by existing multilateral financial institutions. To ensure the success of the fist batch of businesses, strict rules and regulations should be formulated and implemented, and transparency and inclusiveness should be bolstered. The relationship between the Asian Infrastructure Investment Bank (AIIB) and the Silk Road Fund and other global and regional multilateral development banks is complementary rather than substitutionary, and will operate under the current international economic and financial order. 1