The Chinese government intends to set up an international development co-operation agency, Xinhua reports, citing a document that the State Council, or cabinet, submitted to the National People’s Congress, or legislature.

The Chinese state-run news agency says the new body will be one of the results of a re-organisation of Chinese government departments.

The report says the international development co-operation agency will make full use of foreign aid as tool for diplomacy, enhancing the way such aid is planned and co-ordinated.

The new agency will better serve Chinese diplomatic purposes, including the Belt and Road initiative.

The Belt and Road initiative is a scheme for improving the infrastructure in Asian, European and African countries that China trades with.

The duties of the international development co-operation agency will be to set strategic guidelines for foreign aid, make policy, draw up plans, supervise and evaluate, Xinhua says.