A year from now, China will start its biggest-ever investment drive in the United Stated.
And it will do so with a new plan to turn back the clock on U.S. allies in Asia.
China will build an $11 trillion infrastructure fund, or “Infrastructure Bank,” that will invest billions of dollars in infrastructure projects in the U.K., Australia and the Philippines, according to a draft of the plan published Wednesday by the Wall Street Review.
The bank, to be run by the Shanghai Cooperation Organization (SCO), will be overseen by the World Bank, which has long been a supporter of China’s economic ambitions in the region.
The Chinese Investment Corporation, a state-owned enterprise, will oversee the infrastructure fund.
The SCO’s Shanghai Investment Corporation will oversee other Chinese projects.
The new infrastructure bank will help China finance its vast domestic economy and its growing military ambitions, as well as its ambitious efforts to counter threats from other countries.
It will also play a key role in building the Chinese military’s network of overseas military bases.
“China’s strategy is to make China an ever-more dominant economic player in Asia and beyond,” said Robert O. Yang, a senior fellow at the Center for Strategic and International Studies.
“They will be the dominant economic power.”
The new fund is intended to be a catalyst for U.R.T.A. investment in Asia, which rose from $14.6 billion in 2018 to $27.9 billion in 2020.
The new fund will invest $20 billion more than the $15 billion China pledged to the U