General Electric (GE), through its subsidiary GE Energy Financial Services, has struck a deal with Chinese state fund Silk Road Fund to set up a joint energy infrastructure investment platform.
China’s State Administration of Foreign Exchange (SAFE) which has announced the signing of the agreement stated that the investment platform will be created in Beijing this month.
According to SAFE, GE and Silk Road Fund will jointly invest in infrastructure projects related to power grid, renewable energy, and oil and gas, in countries and regions located along the Belt and Road.
SAFE was quoted by Xinhua as saying: “The cooperation between the Silk Road Fund and GE will not only boost cooperation between high-end manufacturing companies from China and the U.S., but also promote economic development of the regions where their investment goes.”
Silk Road Fund stated that the initiative it will be taking up with GE will look to advance the industrial cooperation between China and US. This will be specifically focused on the high-end manufacturing categories.
Headquartered in Stamford, Connecticut, GE Energy Financial Services is a global energy investor that offers financial solutions to help in establishing various energy projects.
The Silk Road Fund was formed in December 2014 with $40bn as total capital. Its aim is to fund the Belt and Road Initiative.
SAFE, China Investment, China Development Bank and the Export-Import Bank of China are the investors in the Silk Road Fund.
Separately, the US and China have signed a joint development agreement to advance the $45bn liquefied natural gas (LNG) export project in Alaska, which is considered to be a strategic gas infrastructure project for the American state.