On Nov. 4, Policy Bank in China announced that they are preparing $16.3 billion as an initial outlay to fund the start of the new Silk Road overland trade route. This commercial and military only road will allow trade to occur across Asia, Central Asia, Eastern Europe and into the heart of the Western financial system, cutting in half the time it normally takes to ship goods using the open seas.
The initial funding is expected to be used to build and shore up key infrastructure in and around where the primary highway will be constructed, and build and expand railways, roads and pipelines in Chinese provinces that are part of the strategy to facilitate trade over land and shipping routes.
The purpose of the new Silk Road is two-fold. To cut shipping and distribution times from the Far East to Western customers by nearly half, and to also protect Asian trade from geo-political interference such as America's military presence in the South China Sea, and future threats of economic sanctions imposed upon them by the West as China, Russia, and the BRICS coalitions grow in size and stature in the new global economy.
China plans a $16.3 billion fund to finance construction of infrastructure linking its markets to foreign countries as President Xi Jinping pushes forward with his plans to revive the centuries-old Silk Road trading route.
The fund, overseen by Chinese policy banks, will be used to build and expand railways, roads and pipelines in Chinese provinces that are part of the strategy to facilitate trade over land and shipping routes, according to government officials who participated in drafting the plan.
The New Silk Road plan, comprising a land-based belt and a maritime route, has been referred to as a Chinese national strategy after Xi first proposed the idea in Kazakhstan a year ago. It envisions an economic cooperation bloc through to the Mediterranean that revives the old Silk Road, where trade helped developed civilizations along the route. - China Daily
Perhaps the most interesting aspect of the new Silk Road is that it is expected to tie into the Eurasian Economic Union already completed that will facilitate tax free trade between partners and nation states that desire to engage in direct trade agreements using their own currencies, and bypassing the U.S. dollar.
With Russia, China, and several other allied nations tied to the BRICS coalition all working towards a new economic trade system that relies upon direct trade and open agreements using a nation's output and own currencies, nearly all of the current Western financial platforms such as the World Bank, IMF and SWIFT are being duplicated and replaced to prepare for a paradigm shift from the West to the East. And the prize jewel to this new system of trade will be the trans-continental Silk Road, which historically was the most important trade structure of the last 1000 years.
