The demonstration zone in Qingdao, Shandong province for economic collaboration with members of the Shanghai Cooperation Organization has been seeing substantial progress recently.

An online video meeting was held on March 19 in the coastal city, during which the China-Shanghai Cooperation Organization Demonstration Zone for Local Economic and Trade Cooperation in Qingdao signed cooperative agreements with SPIC Fund Management Co and the China-Eurasian Economic Cooperation Fund.

State Power Investment Corporation (SPIC) is one of China's top five power generators under the administration of the central government, and SPIC Fund Management Co manages its funds.

According to the cooperation agreement, SPIC Fund Management Co will set up a China-Russia energy cooperation investment fund with an initial investment of 3 billion yuan ($421 million) and a total investment of 10 billion yuan in Qingdao. It will cooperate with Qingdao in new energy power generation, comprehensive intelligent energy, intelligent agriculture, and more.

The service center of the China-Shanghai Cooperation Organization Demonstration Zone for Local Economic and Trade Cooperation in Qingdao [Photo/WeChat account: qdfbwx]

The China-Eurasian Economic Cooperation Fund, backed by the Export and Import Bank of China, is an important equity investment vehicle set up by the Chinese government to realize the strategic goals of the Belt and Road Initiative.

According to the strategic cooperation memorandum, the two parties will strengthen cooperation in two-way investment, foreign exchange, capital, and finance. They plan to set up an SCO equity investment association in Qingdao and build a sovereign wealth fund for countries involved in the Belt and Road Initiative.

Qingdao Party chief Wang Qingxian thanked the two sides for investing in Qingdao.

Wang said that the China-SCO demonstration zone is intended to create a better platform for international cooperation under the Belt and Road Initiative and lead to collaboration in logistics, trade, investment, tourism and culture.

He said that the zone is crucial to both the nation and Qingdao's strategies for opening-up and increasing international cooperation.

He added that Qingdao plans to further optimize its business environment, provide policy support, and promote the implementation of new projects.