$600 bn G7 global infra plan to take on China

By Our Special Correspondent

The G7 on Sunday announced $ 600 billion for global infrastructure programs in poorer countries to compete with China's formidable belt and road initiative.

Between now and 2027, the White House says the U.S. government and allies will shoot $ 600-billion by "increasing grants, federal financing and private sector investment."

The partnership for global infrastructure and investment, launched by US President Joe Biden and fans by G7 allies in Canada, Germany, Italy, Japan and the European Union, will fill the huge gap left by Communist China's use of its economic clout to expand its diplomatic empire. Into distant parts of the world.

Biden said the United States aims to bring the remaining G7 to the table by $ 200 billion, with another $ 400 billion by 2027.

Biden said it was not "aid or generosity" to fund the types of projects that China currently dominates, from roads to ports in the far corners of the world.

Highlighting the geographical strategy behind the plan, Biden said such projects would "bring returns to everyone, including the American people and the people of all our countries."

As the AFP reported, European Commission Chief Ursula van der Leyen echoed this, "We want to show the world that our partners in the developing world have a choice, providing them with positive, powerful investment impetus."

Unlike China’s government-run BRI initiative, the proposed G7 funding will be highly dependent on private companies willing to commit to large investments and is therefore not guaranteed.

According to US officials, however, that is a good thing.

In this capitalist VS communist scenario, US officials say the recipient countries can avoid the debt traps and other strong tactics used by the Chinese.