The pipeline will transport gas from energy-rich Turkmenistan to China in as part of a huge supply deal.
"Carrying out this project will allow us to attract more than USD 3 billion of direct investments from Chin into the economy of Tajikistan," said the press service of Tajik President Emomali Rakhmon today.
It will supply China with 25-30 billion cubic metres of oil per year, the press service said.
China is eyeing the vast oil and gas resources of ex-Soviet Central Asia for its fast-growing domestic economy and is also keen to assert political influence in a region that was dominated by Moscow for decades.
The new pipeline is due for completion in 2016 and will run for more than 400 kilometres within Tajikistan.
The mountainous country is the poorest ex-Soviet republic and dependent on remittances from its nationals doing manual labour in Russia.
Xi is carrying out a four-nation tour of Central Asia.
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