U.S. aims to raise $200 billion as part of the G7 rival to China’s Belt & Road

WASHINGTON, June 26 – The United States aims to raise $200 billion in private and public funds over five years to fund needed infrastructure in developing countries under a G7 initiative to counter China’s multitrillion-dollar Belt and Road project, the White House said on Sunday.
U.S. President Joe Biden will unveil the plans, flanked by other Group of Seven leaders, some of whom have already unveiled their separate initiatives, at their annual gathering being held this year at Schloss Elmau in southern Germany.

Increasingly worried about China, G7 leaders first floated plans for the project last year and are formally launching it now under a new title, “Partnership for Global Infrastructure and Investment,” while dropping the moniker “Build Back Better World,” first coined by Biden during his presidential campaign.
Biden will unveil several specific projects at a G7 side event, joined by leaders from Britain, Germany, Japan, the European Union, and Canada, vowing to focus on projects that help tackle climate change and improve global health gender equity, and digital infrastructure. Notably absent will be French President Emmanual Macron, who had formally joined the Chinese infrastructure program.

“The president’s not thinking that we need to spend dollar for the dollar versus China … though if you add up what the U.S. and the G7 partners are going to be announcing, it comes pretty close to the number,” one senior U.S. official told reporters.

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U.S. aims to raise $200 billion as part of the G7 rival to China’s Belt & Road

The White House said that hundreds of billions of additional dollars could come from multilateral development banks, development finance institutions, sovereign wealth funds, and others would raise funds through grants and federal funds and by leveraging private-sector investments.

China’s Belt and Road Initiative (BRI) scheme, which President Xi Jinping launched in 2013, involves development and investment initiatives in over 100 countries, including railways, ports, and highways.

White House officials say Xi’s plan to create a modern version of the ancient Silk Road trade route has provided little tangible benefit for many developing countries, with top jobs going to Chinese workers while increasing rates of forced and child labor.
Biden will highlight several flagship projects, including a $2 billion solar development project in Angola with support from the Commerce Department, the U.S.

Export-Import Bank, U.S. firm AfricaGlobal Schaffer, and U.S. project developer Sun Africa.

Together with G7 members and the EU, Washington will also provide $3.3 million in technical assistance to Institut Pasteur de Dakar in Senegal as it develops an industrial-scale flexible multi-vaccine manufacturing facility in that country can eventually produce COVID-19 and other vaccines.

The U.S. Agency for International Development (USAID) will also commit up to $50 million over five years to the World Bank’s new global Childcare Incentive Fund, a project to address the gap in suitable childcare infrastructure.

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