The leader of the Group of Seven (G7), which represents the wealthiest democracies, is on June 26 to counter the expansion of China’s regime with huge loans to poor countries to build infrastructure. Announced $ 600 billion in the Global Infrastructure Program today.
US President Joe Biden and other G7 leaders by 2027 for a plan known as a partnership for global infrastructure and investment aimed at supporting the infrastructure needs of low- and middle-income countries. I promised to raise dollars.
“I want to make it clear, this is not an aid or charity,” Biden said. Said He announced the project following the meeting at the beginning of the three-day summit in Germany.
“This is an investment that benefits everyone, including Americans and people of all nations.”
According to the White House, the United States will mobilize $ 200 billion for partnerships “through grants, federal funding, and private sector investment” over the next five years.
Europe has announced that it will mobilize € 300 billion over the same period.
“This is just the beginning,” the White House said in another language. statement.. “The United States and its G7 partners seek to mobilize additional capital from other like-minded partners, such as multilateral development banks, development finance institutions, and sovereign wealth funds.”
The infrastructure plan is seen as a rebranding of the Build BackBetter World initiative, also known as B3W, first announced at the G7 Summit in the UK last year in response to the Chinese administration’s trillions of dollars in the Belt and Road (BRI) project. It has been done.
Launched by Chinese leader Xi Jinping in 2013, the BRI peaked in 2015 by expanding its influence through the construction of global trade links, railroads, ports, highways and other infrastructure projects. Has been reached. More than 140 countries have participated in this initiative, and the results are mixed.
BRI critics call this project a form of “debt trap diplomacy.” This supports developing countries at sustainable debt levels and remains vulnerable to the transfer of strategic infrastructure and resources to Beijing. In September, the Institute’s AidData counted at least 42 countries with public debt exposure to China, which exceeds one-tenth of GDP.
At a press conference on Sunday, European Commission President Ursula von der Leyen said, “It is the world’s willingness to give the world a positive and strong investment urge to show that partners in developing countries have choices. It’s our responsibility. “
The partnership focuses on health, digital infrastructure, gender equality, climate and energy security.
Biden highlights several major projects, including a $ 2 billion solar development project in Angola with the support of the U.S. Department of Commerce, U.S. Export-Import Bank, U.S. company Africa Global Schaffer, and U.S. project developer Sun Africa. did.
“When democracy demonstrates what we can do and everything we have to offer, I’m sure they will win the competition every time,” he added.
Reuters and EvaFu contributed to the report.