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G7 Unveils $600bn Fund to Take on China’s Belt and Road

US President Joe Biden and leaders of other G7 nations relaunch newly renamed ‘Partnership for Global Infrastructure and Investment’

Leaders of the Group of Seven, or G7, countries have committed to raising $600 billion over five years to counter China's multi-trillion-dollar Belt and Road Initiative.
Group of Seven leaders gather for a dinner at Schloss Elmau in southern Germany on Sunday June 26, 2022. The G7 leaders clockwise from front left are: European Council President Charles Michel, Italy's Prime Minister Mario Draghi, Canada's Prime Minister Justin Trudeau, French President Emmanuel Macron, German Chancellor Olaf Scholz, US President Joe Biden, British PM Boris Johnson, Japan's PM Fumio Kishida and European Commission President Ursula von der Leyen. Photo: Markus Schreiber, pool via Reuters.


Leaders of the Group of Seven, or G7, countries have committed to raising $600 billion over five years to counter China’s multi-trillion-dollar Belt and Road Initiative.

The money to finance infrastructure in developing nations will be raised through private and public funds.

US President Joe Biden and leaders of other G7 nations relaunched the newly renamed “Partnership for Global Infrastructure and Investment,” at an annual gathering being held this year at Schloss Elmau in southern Germany.

Biden said the US would mobilize $200 billion in grants, federal funds and private investment over five years to support projects in low- and middle-income countries that help tackle climate change, as well as improve global health, gender equity and digital infrastructure.


Investment, Not Aid Or Charity

“I want to be clear. This isn’t aid or charity. It’s an investment that will deliver returns for everyone,” Biden said, adding that it would allow countries to “see the concrete benefits of partnering with democracies.”

Biden said hundreds of billions of additional dollars could come from multilateral development banks, development finance institutions, sovereign wealth funds and others.

Europe will mobilize 300 billion euros for the initiative over the same period to build up a sustainable alternative to China’s Belt and Road Initiative scheme, which Chinese President Xi Jinping launched in 2013, European Commission President Ursula von der Leyen told the gathering.

The leaders of Italy, Canada and Japan also spoke about their plans, some of which have already been announced separately. French President Emmanuel Macron and British Prime Minister Boris Johnson were not present, but their countries are also participating.

China’s investment scheme involves development and programs in over 100 countries aimed at creating a modern version of the ancient Silk Road trade route from Asia to Europe.

White House officials said the plan has provided little tangible benefit for many developing countries.


Spotlight On Flagship Programs

Biden highlighted several flagship projects, including a $2-billion solar development project in Angola with support from the Commerce Department, the US Export-Import Bank, US firm AfricaGlobal Schaffer, and US 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 that can eventually produce Covid-19 and other vaccines, a project that also involves the EU.

The US Agency for International Development (USAID) will also commit up to $50 million over five years to the World Bank’s global Childcare Incentive Fund.

Friederike Roder, vice president of the non-profit group Global Citizen, said the pledges of investment could be “a good start” toward greater engagement by G7 countries in developing nations and could underpin stronger global growth for all.

G7 countries on average provide only 0.32% of their gross national income, less than half of the 0.7% promised, in development assistance, she said.

“But without developing countries, there will be no sustainable recovery of the world economy,” she said.


  • Reuters with additional editing by Jim Pollard






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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.


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