China established multi-billion dollar fund for investments in Central and Eastern Europe

China established 11 billion USD fund for Central and Eastern Europe, which aims to invest in infrastructure, high technology and consumer goods. The fund was officially presented on the economy forum in Riga, where participated the Chinese Prime Minister Li Keqiang. According to estimates, the fund might raise to 50 billion USD, attracting private investors and enterprises.

The Fund will be managed by Sino-CEE Financial Holdings and so far will be concentrated in Central and Eastern Europe, but after that the focus will be extended to other parts of Europe. The money should be managed entirely by the rules of good business practices and market demand.

Central and Eastern Europe is part of the new Chinese Silk Road, so the Beijing hopes to find new markets for their companies. According to China’s Ministry of Commerce, the Chinese companies have already invested more than 5 billion USD in Central and Eastern Europe.

Some analysts say, that China wants to invest more in European Union countries, especially in the periphery, to secure easy and seamless access to the big market of the Eurozone. One concern of the Asian country is that powerful countries, especially Germany, seeking to limit Chinese investments.

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