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China to inject billions of dollars into EU fund
June 14, 2015, 12:25 pm

Chinese Premier Li Keqiang (R) and German Chancellor Angela Merkel meet with delegates attending the first meeting of Sino-German Advisory Committee on Economy in Beijing, capital of China, July 7, 2014 [Xinhua]

Chinese Premier Li Keqiang (R) and German Chancellor Angela Merkel meet with delegates attending the first meeting of Sino-German Advisory Committee on Economy in Beijing, capital of China, July 7, 2014 [Xinhua]

The Chinese government will inject billions of dollars into a much touted EU plan to invest 315 billion euros into the EU’s ailing economy, said a Reuters report on Sunday.

The new European Fund for Strategic Investment (EFSI) will finance infrastructure projects in areas such as broadband data connections, energy and transport, education, research and innovation.

The Chinese investment will be announced by China’s Premier Li Keqiang at the China-EU Summit in Brussels on 29 June.

Beijing’s plan to invest in the EU fund came after the decision of several European countries to join the China-led Asian Infrastructure Investment Bank (AIIB).

“China announced that it would make (X amount) available for co-financing strategic investment of common interest across the EU,” Reuters quotes the draft final statement.

The EU fund will “create opportunities for China to invest in the EU, in particular in infrastructure and innovation sectors” added the draft communiqué.

The proposed fund is stated to be the cornerstone of the European Commission’s agenda to jumpstart the EU’s moribund economy, which has failed to grow effectively since the Great Recession, is mired in mass unemployment and threatens to sink into deflation.

Meanwhile, more and more European countries are likely to follow Hungary’s lead in officially signing onto China’s ambitious Silk Road project, a multi-billion dollar program to build up infrastructure and trade along the land and maritime routes of the ancient Silk Road that stretched across Asia and Europe.

 

TBP

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