US President Joe Biden announced a $600 billion project at the G-7 meeting on Sunday. It is believed that this announcement of Biden in the G-7 is to compete with China’s Belt and Road Initiative. This fund of $ 600 billion will be raised for global infrastructure programs in poor countries. Let us know, how will this project compete with China’s Belt and Road Initiative?
What happened in G7?
US President Joe Biden rechristened the “Partnership for Global Infrastructure and Investment” during the G7 summit held in Schloss Elmau, Germany. Biden said the US will raise $200 billion in grants, federal funds and private investment, which will be used to tackle climate change in low- and middle-income countries, improve global health and digital infrastructure.
Biden said, let me make it clear that this is not an aid or charity. It is an investment that will give returns for all. This will also benefit the partnership with democratic countries. Biden said, billions of dollars of additional help can also come from development banks, financial institutions, wealth funds and elsewhere.
European Commission President Ursula von der Leyen said Europe would raise 300 billion euros to create a sustainable alternative to China’s Belt and Road Initiative plan. The Belt and Road Initiative plan was launched by Chinese President Xi Jinping in 2013.
Apart from this, leaders of Italy, Canada and Japan also told about their plans, some of which have already been announced separately. French President Emmanuel Macron and British Prime Minister Boris Johnson were not present, however, representatives of their country attended.
Member countries did not get benefit of China’s plan
China, through its investment plan, has invested in more than 100 countries with the aim of developing a modern version of the ancient Silk Road trade route from Asia to Europe. According to the White House, developing countries have got very little concrete benefit of this plan of China.
Biden also gave information about several major projects. This includes a $2 billion solar development project in Angola with support from the Department of Commerce, the US Export-Import Bank, US firm Africa Global Schaefer and US project developer Sun Africa.
How will G-7 compete with China?
According to the US, it is proposed to raise $ 600 billion by 2027 under the Global Infrastructure Plan. According to America, the countries which will be involved in this project will be able to deal with the companies themselves. At the same time, China has been accused of controlling the politics and financial system of the countries involved in the BRE project. In such a situation, countries will now have a new option to avoid China’s conspiracy.
The Global Infrastructure Partnership was discussed at the G-7 meeting last year. Through this project, basic infrastructure such as roads and ports is to be developed in those countries, which depend on China. On the other hand, China has badly trapped in the debt trap of all the countries through the BRE project.
How will India benefit from this?
The G-7 is a grouping of countries with the 7 largest developed and advanced economies of the world. This includes the US, Canada, France, Germany, Italy, Japan and the UK. India is not its member country. However, India has been invited continuously in the G-7. It is believed that the G-7 countries realize that India’s support is necessary to deal with global challenges. India is also expected to get the benefit of the new project of G-7. Actually, China has kept India’s neighboring countries trapped in a debt trap. Sri Lanka, Nepal and Pakistan are prime examples of this. China controls the political and financial systems of these countries on the pretext of debt.
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