Thursday, December 26
Shadow

G7 announced $600 billion global infrastructure program to counter China’s BRI

The Group of Seven (G7) is currently meeting in Germany’s Krün town to discuss the world order and how China can be stopped from running its debt-trap diplomacy across the world.

G7 Nations flags
G7 countries are meeting in Germany from 26th and 28th June 2022 (Photo: Business Green)

The Group of Seven (G7) has put a big step toward countering china’s Belt and Road Initiative (BRI) by announcing $600 billion for global infrastructure programs in lower and middle-income countries. AFP reports that the United States government and allies will plan the $600-billion figure for the next five years.

According to the White House, the amount will be in the form of “grants, federal financing, and leveraging private sector investments.” The program has been named Partnership for Global Infrastructure and Investment, which was unveiled by US President Joe Biden and G7 allies from Canada, Germany, Italy, Japan, and the European Union.

POTUS Joe Biden said the United States aims to contribute $200 billion, while the rest of the nations will be bringing another $400 billion by 2027. He also attacked China by saying its funding model is undoubtedly not aid or charity. Since China has been stretching its loan diplomacy across the globe and capturing them under the economic trap, the world community had to take some actions to stop the communist nation.

Joe Biden and Ursula von der Leyen
Joe Biden and Ursula von der Leyen have been the biggest supporters of countering China plan

Every move China plays is filled with its geostrategic ambition that is damaging the world order. Biden said that the G7’s project aims to “deliver returns for everyone, including the American people and the people of all our nations.”

European Commission chief Ursula von der Leyen said “it is up to us to give a positive, powerful investment impulse to the world, to show our partners in the developing world that they have a choice.”

The west and China are fighting for emerging winners in the financial race. This move is getting positive feedback in the US and officials are also applauding this quite warmly. Some experts are giving this the color of capitalist vs communist. It will be interesting to see what unfolds in the future.

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