G-7 Announces $ 600 Billion Global Infrastructure Plan to Counter China’s “Debt Trap”


Group of Seven (G-7) countries have decided to raise $ 600 billion over the next five years for a global infrastructure program that acts as a “positive alternative” to the model of selling “debt traps.” I am planning.

The G7 leaders of the United States, Canada, Germany, Italy, Japan and the European Union announced the Partnership for Global Infrastructure and Investment (PGII) at the Summit in Bavarian, Germany on Sunday.

The White House said Washington alone would mobilize $ 200 billion to PGII “through the use of subsidies, federal funding and private sector investment” by 2027, “this is just the beginning.”

“The United States and its G7 partners will seek to mobilize additional capital from other like-minded partners, such as multilateral development banks, development finance institutions, and sovereign wealth funds.” statement.

In Europe Pledge While mobilizing € 300 billion ($ 316 billion) by 2027 Japan said We aim to allocate $ 65 billion to PGII.

US President Joe Biden said investment will be made in four key areas: health and health security, digital connectivity, gender equality and equality, and climate and energy security.

“I would like to make it clear that this is not aid or charity. It is an investment that benefits everyone, including Americans and people of all nations.” Biden. Said at the summit.

“It boosts all our economies, we share our positive vision for the future, and let communities around the world see for themselves the specific benefits of partnering with democracy. It’s a chance, “he added.

China’s Belt and Road Initiative

PGII was launched a year later Biden was introduced The Build Back Better World Initiative at the 2021 G7 Summit stated that the program reflects democratic values ​​rather than “lack of dictatorial values.”

“What’s happening is that China has this Belt and Road Initiative, and we believe there is a much more equitable way to meet the needs of countries around the world,” Biden said. I mentioned it last June.

U.S. Treasury Explained PGII acts as a “transparent partnership” that helps meet the “huge infrastructure needs of low- and middle-income countries, regardless of the debt cycle.”

The program is part of the China Belt and Road Initiative, launched in 2013 by Chinese leader Xi Jinping to expand Beijing’s trade network by funding infrastructure projects across Southeast Asia, Africa, Europe and Latin America. It seems to be comparable.

In recent years, critics have accused Beijing of using “debt trap diplomacy” to lure countries into its initiative. Many countries have relinquished some of their sovereignty after failing to repay China’s debt. In particular, Sri Lanka leased Hambantota Harbor to China for 99 years, converting $ 1.4 billion of unpaid loans into equity.

Frank Fang contributed to this report.

Aldograph Redley

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Aldgra Fredly is a Malaysia-based freelance writer featuring the Epoch Times Asia Pacific News.

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