Li Keqiang. Photo by
The Industrial and Commercial Bank of China announced that it has set up a €10 billion ($11.15 billion) investment fund to help finance projects in Central and Eastern Europe.
During his visit to Riga last week, Premier Li Keqiang announced that the China-Central Eastern Europe fund will be run by Sino-Cee Financial Holdings Ltd, a company launched by the bank several months ago.
The fund is hoping to raise about €50 billion to finance projects in consumer goods, high-tech manufacturing, and infrastructure. The fund will concentrate its investments in Central and Eastern Europe, but it could expand to other areas in Europe if the projects are connected to cooperation between China and those other regions.
The Chinese government will back the fund, although it will work utilizing normal business principles and be subject to market forces. As China’s domestic economy slows the country is looking towards Central and Eastern Europe to expand business in what is known as China’s moderns Silk Road. The goal is to establish new markets in this region for Chinese businesses.
According to the Chinese Vice Commerce Minister Gao Yan, China-based companies have already invested in CEE countries to the tune of about $5 billion.
