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$30b special fund for China-LatAm production capacity cooperation

Updated: May 19,2015 4:08 PM     Xinhua

BRASILIA — Premier Li Keqiang announced in Brasilia on May 19 that Beijing will establish a $30 billion special fund for promoting China-Latin America cooperation in production capacity and equipment manufacturing.

The fund will be channeled directly to cooperation projects with no political strings attached, Premier Li said at the closing ceremony of a China-Brazil business summit.

To build an upgraded version of China-Latin America cooperation, Premier Li proposed a new mode of production capacity cooperation called “three times three.”

To meet the needs of China and Latin American countries, he proposed the joint construction of three passages for logistics, electric power and information, so as to achieve interconnection on the South American continent.

The Chinese enterprises are willing to join their Latin American partners in building the three passages by enhancing cooperation on railway construction, high-voltage electrical power transmission and smart grids, as well as Internet technology and next-generation mobile telecommunication technology, the premier said.

He said the new mode of China-Latin America production capacity cooperation should follow the rules of the market economy, in a bid to achieve sound interaction among the private sector, society and the government.

The cooperative projects should be run by enterprises and operated commercially, with promotion from the government and participation of the whole society, Premier Li said.

He urged that the existing cooperative projects should be carried out as soon as possible through joint ventures, public-private partnership (PPP) and franchising.

Premier Li called on the two sides to facilitate the construction of their cooperative projects by expanding three financing channels, namely funding, credit loans and insurance.

During Premier Li’s visit to Brazil, the two countries signed the 2015-2021 joint action plan as well as 35 cooperative documents covering the areas of industrial capacity, infrastructure construction, finance, aviation, agriculture, new energy, telecommunication, and science and technology.

When addressing the summit, Brazilian President Dilma Rousseff said China’s proposal of enhancing infrastructure construction cooperation while providing financing support will be conducive to Brazil’s economic development as well as the interconnection and development of Latin America.

The president welcomed Chinese companies’ participation in big projects in Brazil, including electric power and railways, and hoped that the two countries would further expand bilateral trade, optimize trade structures and enhance financial cooperation, so as to push their cooperation to a new level.

The premier is now on a four-nation Latin America tour, a main objective of which is to expand production capacity cooperation and boost common development.