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Wednesday, August 10, 2022

US resumes bidding on G7 to counter China’s Belt and Road

By Jenny Leonard, Alberto Nardelli and Jordan Fabian | bloomberg

President Joe Biden resumes his effort to counter China’s major business-and-infrastructure initiatives after an earlier campaign faltered, enlisting the support of the Group of Seven leaders at their summit in Germany .

The Build Back Better World initiative, named after Biden’s household spending and climate agenda, struggled to get off the ground because not enough G-7 partners contributed financially when it was unveiled a year ago. was done, according to people familiar with its lack of progress. European officials cited the Biden administration’s inability to get ambitious economic legislation of its own through Congress.

“When democracy demonstrates what we can do – whatever we have to offer – I have no doubt that we will win that contest every time,” Biden said during an event on the sidelines of the summit.

The measure has been re-branded as the “Partnership for Global Infrastructure and Investment” and calls on US leaders to agree to the launch of projects in middle and low-income countries worth $600 billion over the next five years. Calling to agree. , This will involve mostly private sector investment, with some funding from the American Development Finance Corporation and the Export-Import Bank and other commitments from foreign governments.

The US will contribute $200 billion in total, although it is unclear what the split will be between private and public sector funding, and how the government plans to persuade companies to participate.

Similar challenges are likely to be faced under the latest incarnation of the initiative, as the G-7 prioritizes other issues such as reducing inflation and dealing with the fallout of Russia’s invasion of Ukraine.

“Russia’s invasion of Ukraine in early 2022 and the precarious economic recovery from COVID-19 threaten to undermine progress,” Chatham House said in a June 24 research paper. “The shifting of priorities between donor nations, prompted by events in Ukraine, risks a further shift in development policy towards bilateralism and fragmentation within the G7 and with recipient countries.”

Hopes have already been quelled. Although it has been touted as a direct alternative to President Xi Jinping’s Belt and Road program, the US official said it would be unrealistic to compare the two dollar for dollar. Each partner country wants to put on its own branding partnership, but all will operate under the PGII umbrella.

The Biden team is of the view that countries around the world are waking up to the reality that the BRI has not achieved results for them and are more receptive to a US-led alternative. The US official said that Russia’s actions in Ukraine also served as a warning to countries that are concerned about being excessively indebted to others with geopolitical risks as a result.

Among the projects announced on Sunday are $2 billion in solar projects in Angola, a $600 million contract to build a submarine telecommunications cable that would connect Singapore to Egypt and France via the Horn of Africa, and a design study for deployment to Romania. $14 million contract to support Small modular reactor plant.

One of the four issues is information and communication technology, along with health, climate and gender equality. This includes, for example, offering an alternative to Chinese telecommunications giant Huawei Technologies Co. for deploying 5G networks and building childcare centers.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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