China will contribute USD 40 billion to set up a Silk Road Fund to "break the bottleneck in Asian connectivity" by building a financing platform, Xi told a neighbourhood leaders summit attended by leaders from Pakistan, Bangladesh, Myanmar, Cambodia, Laos, Mongolia and Tajikistan.
The fund will be used to provide investment and financial support to carry out infrastructure, resources, industrial cooperation and other projects related to connectivity for countries along the "Belt and Road", Xi said, referring to China's Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives.
The timing of the announcement was significant as it came a day ahead of a separate meeting of the leaders of the 21-member Asia Pacific Economic Cooperation (APEC) where China is locking horns with the US to wrest control of the leadership of the region.
The APEC summit is being held from November 10 to 11 in the Chinese capital.
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China's Silk Road and Maritime Silk Road initiatives are widely regarded as strategic moves by Beijing to checkmate US Pivot to Asia and US plans to develop a silk road through Afghanistan.
It involves revival of the ancient Silk Road between China and Europe via Afghanistan and Central Asia, besides linking Bangladesh, China, India, Myanmar (BCIM) Corridor as well as China-Pakistan Economic Corridor through the Pakistan Occupied Kashmir (PoK).
India has expressed backing for BCIM but is non-committal about the Maritime Silk Road plan, the final contours of which were yet to be announced.