China will encourage local companies to issue bonds overseas to fund projects to create a modern Silk Road, a plan to boost connectivity across Asia for which it has created a $40 billion fund, according to a framework agreement released on Saturday by the official Xinhua news agency.
The so-called "One belt, One road" initiative to link Asia to Europe and Africa is the latest step by China to extend its global influence, even as it works to sign up more countries to its Asian Infrastructure Investment Bank (AIIB).
Speaking at an official launching ceremony in the southern city of Boao on Saturday, the country's top diplomat Yang Jiechi said the scheme was a "win win" for China and its neighbors in Asia and further afield and called for more countries to join.
The official name of the plan refers to Beijing's vision of creating a modern Silk Road Economic Belt and a 21st Century Maritime Silk Road to boost trade and strengthen global economic ties.
Projects would include a network of railways, highways and other infrastructure, as well as oil and gas pipelines, power grids and Internet networks.
Bonds issued to finance the projects may be denominated in yuan or other currencies.
China will also support private investment in key projects, according to the framework, but it did not clarify whether foreign companies would be allowed to invest.
Sectors expected to benefit from the plan inlude the resource industry, as the route will allow for greater mineral exploration, and agriculture.
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