G7 unveils $600 bn plan to counter China on BRI
US President Joe Biden and other G7 leaders have unveiled ambitious plans to mobilise USD 600 billion in funding by 2027 to deliver game-changing infrastructure projects in developing countries like India, in a move seen as a counter to China’s Belt and Road Initiative.
The Partnership for Global Infrastructure and Investment (PGII) unveiled on Sunday here during the G7 Summit relaunches a scheme unveiled at last year’s G7 talks in England.
President Biden said the plan would deliver returns for everyone.“Today, the nations of the G7 launched the Partnership for Global Infrastructure and Investment (PGII),” Biden said.
“Collectively, we aim to mobilise nearly USD 600 billion from the G7 by 2027 to invest in critical infrastructure that improves lives and delivers real gains for all of our people,” he said in a tweet.
“I want to be clear – the G7’s announcement of a new global infrastructure partnership isn’t aid or charity. It’s an investment that will deliver returns for everyone – including the American people – and boost all of our economies,” Biden tweeted.
Chinese President Xi Jinping’s multi-trillion dollar Belt and Road Initiative (BRI) has been criticised for hitting many developing nations with too much debt.
The PGII has been hailed as a way to counter China’s ambitious BRI. Launched in 2013, the BRI provides financing for emerging countries to build infrastructure like ports, roads and bridges.
While it has developed trade links, it has also been criticised as a means of providing ‘predatory loans’, forcing countries like Sri Lanka to cede key assets if they fail to meet their debt repayments.
The PGII scheme would allow countries to “see the concrete benefits of partnering with democracies,” President Biden said. He said the PGII will “mobilise strategic investments in areas vital to sustainable development and our shared global security.”
The White House, in a fact sheet, said the US will mobilise hundreds of billions of dollars and deliver quality, sustainable infrastructure that makes a difference in people’s lives around the world.