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China is planning a considerable expansion of its foreign aid programs with a particular focus on infrastructure projects in countries along the land and maritime Silk Road trading routes, government officials said on Monday.
The country is planning to initiate a number of strategically important aid projects to help improve transportation, energy and telecommunications in those countries, according to the Ministry of Commerce, which is responsible for administrating the country's foreign aid programs.
Projects involving construction and improvement of roads, railways, ports and airports are already being implemented in countries including Laos, Myanmar, Nepal and in Central Asia, Yu Zirong, deputy director-general of the foreign aid department at the ministry, told a news conference in Beijing.
"China's growing future foreign aid program will be tilted toward neighboring countries and those in the Silk Road region," Yu said.
The planned shift in direction for Chinese foreign aid is a direct result of President Xi Jinping's proposed national strategy to revive the centuries-old trading routes connecting Asia and Europe, experts said.
The newly created 40 billion yuan ($6.5 billion) Silk Road fund and the Beijing-initiated Asian Infrastructure Investment Bank are expected to facilitate China's foreign aid programs in the future, they said.
"Such a shift indicates that China will be more inclined to offer assistance to Asia and neighboring countries," said Wang Luo, a researcher at the Chinese Academy of International Trade and Economic Cooperation.
"It does not mean that the percentage of China's foreign aid to Africa will drop. It just means that Asia and countries along the Silk Road will get a greater share as China grows its aid spending," she said.
Africa has been the largest recipient of China's foreign aid with more than half of spending directed at the continent between 2010 and 2012, according to a policy paper issued in June.
China spent 89.34 bill
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China plans to carry forward the Silk Road initiative and kick off major joint projects, as the contract value of service outsourcing within the region soared by 22.3 percent to $10.61 billion from January to November, said the Ministry of Commerce on Tuesday.
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