A $600 billion move by the G7: Great Wall to Beijing’s ‘Silk Road’

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A $600 billion move by the G7: Great Wall to Beijing's 'Silk Road'

The G7 Summit, which convened in Germany with the agenda of Ukraine and the global climate, also made an important move against China’s expansion.

A $600 billion move by the G7: Great Wall to Beijing's 'Silk Road' 1

The summit pledged to allocate 600 billion dollars over five years to finance much-needed infrastructure in developing countries. It was stated that half of this amount would be provided by the EU and half by the US. The step, which will change the balance in the world, is said to be against the ‘Belt and Road’ project, China’s plan to revive the old Silk Road.

An important move was made against China at the ongoing G7 Leaders Summit in Germany. At the G7 Leaders Summit, it was promised that 600 billion dollars would be allocated over five years to finance the infrastructure needed in developing countries. This step is said to be against the ‘Belt and Road’ project, China’s plan to revitalize the ancient Silk Road.

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US President Joe Biden announced the ‘Global Infrastructure and Investment Partnership’ at the annual meeting of the G7 at Schloss Elmau in southern Germany. Biden said that the grant and funding plan will be activated to support global health, gender equality, digital infrastructure projects in low and middle-income countries, and to help combat climate change.

“THIS IS NOT JUST A HUMANITARIAN CONCERN”

Noting that hundreds of billions of additional dollars could come from multilateral development banks, development finance institutions, sovereign wealth funds and others, Biden said, “I want to be clear. This is not aid. This is an investment that will generate returns for everyone.”

Pointing out that developing countries lack basic infrastructure when faced with global shocks such as pandemics and therefore feel the effects of crises more deeply, Biden said this situation creates not only a humanitarian concern but economic and security concerns for everyone.

“IT IS UP TO US TO SEND A POSITIVE AND STRONG MESSAGE”

European Commission President Ursula von der Leyen stated that the EU is contributing to the investment gap in the world with the ‘Global Gateway’ project. Von der Leyen said that Europe has allocated 300 billion euros in the same period for the initiative to create a sustainable alternative to the Belt and Road Initiative plan launched by Chinese President Xi Jinping in 2013.

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“We will optimize our collective strength because it is up to us to send a positive and strong message to the world in terms of investment, to show our developing partners that they have a choice and that we intend to take steps in solidarity to meet their development needs,” Von der Leyen said, adding that the G7 should invest more together and offer alternatives for investment projects.

“EU LEADS IN INVESTMENT IN DEVELOPING COUNTRIES”

Michel said that the EU has been a leader in cooperation with developing countries, with the EU alone providing 46 percent of global aid to these countries. “Almost 70 billion euros are going all over the world to ensure more peace, prosperity and development,” Michel said, adding that the EU also invests in education, health and research. Referring to the concrete investments made in Africa within the scope of the Global Gateway, Michel reminded that 150 billion euros were allocated to these.

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CHINA’S NEW SILK ROAD PROJECT COVERS 100 COUNTRIES

China’s Belt and Road project includes development and programs in more than 100 countries aimed at creating a modern version of the ancient Silk Road trade route from Asia to Europe. The project is expected to cost up to one trillion dollars by the time it is completed.

White House officials argue that the plan offers few tangible benefits for many developing countries.

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