European nations want the European Commission to draw up a list of “high impact and visible projects” in the coming few months to counter China’s Belt and Road Initiative (BRI). With this, the Union hopes to build a “globally connected EU” by going beyond Asia and connecting with Africa and Latin America, which are “China’s key investment destinations.”
On Tuesday, Politico stated that the draft conclusions of the European Council mention high-end projects to rival Beijing’s growing political and economic influence. The findings read: “The Council notes that other key economies have developed their approaches and tools for connectivity and underlines the need for all such initiatives and actions to apply high international standards. The Council requests the Commission and the High Representative [Josep Borrell] to proceed swiftly with the implementation of the proposals.”
They have also asked the Commission to suggest a name and logo for their project in collaboration with member states that is “as catchy as Belt and Road.” The Commission might also have to “present coherent and streamlined financing schemes to incentivise sustainable connectivity investments.” In this regard, the Council reviewed the financial risks of large-scale infrastructure projects and hoped for predictable international and standard norms and a conducive environment to incentivise private investments.
At the G7 Plus Summit hosted by the United Kingdom (UK) last month, leaders agreed to create a democratic alternative to the Chinese initiative, and the draft conclusions from the Council suggested that “China’s description does not wholly convince the EU of its scheme.” On the G7’s investment in Africa, the President of the European Commission, Ursula von der Leyen, said: “It is first important to convince our partners, the investment comes without strings attached compared to China.”
After concluding the Summit, United States (US) President Joe Biden indicated the willingness of the world’s leading economies to work towards his “Build Back Better World” programme, which aims to create “a strategy to deal with China non-market policies that undermine competition.” Biden’s project is seen as an alternative to China’s BRI, claiming to provide for the world’s needs in an equitable manner.
China’s BRI is a transport and infrastructure project aiming to connect Asian and European markets and represents the country’s political power and influence. The initiative is worth $2.5 trillion and gives China access to energy sectors and maritime security across the globe. During a virtual summit with his French and Russian counterparts on Monday, Chinese President Xi Jinping reaffirmed that the BRI aims to “create opportunities for common development”. However, China has been accused of taking advantage of debt-strapped countries by offering unsustainable economic projects.
The foreign ministers of European nations are likely to sign off on the idea on Monday.
European Countries Discuss Projects to Counter China’s Belt and Road Initiative
The European countries have asked the European Commission to draw up plans for highly visible projects to counter China’s growing political influence through its Belt and Road Initiative.
July 7, 2021
SOURCE: BRINK NEWS