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G7 rivals China with grand infrastructure plan

CoronavirusJun 13, 2021 12:51AM ET
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2/2 © Reuters. FILE PHOTO: European Commission President Ursula von der Leyen, German Chancellor Angela Merkel, Japan's Prime Minister Yoshihide Suga, France's President Emmanuel Macron along with Britain's Queen Elizabeth, Canada's Prime Minister Justin Trudeau, Britai 2/2

By Steve Holland and Guy Faulconbridge

CARBIS BAY, England (Reuters) - The Group of Seven richest democracies sought on Saturday to counter China's growing influence by offering developing nations an infrastructure plan that could rival President Xi Jinping's multi-trillion-dollar Belt and Road initiative.

The G7, whose leaders are meeting in southwestern England, has been searching for a coherent response to the growing assertiveness of Xi after China's surging economic and military rise over the past 40 years.

U.S. President Joe Biden and other G7 leaders hope their plan, known as the Build Back Better World (B3W) initiative, will provide a transparent infrastructure partnership to help narrow the $40 trillion needed by developing nations by 2035, the White House said.

"This is not just about confronting or taking on China," a senior official in Biden's administration said. "But until now we haven't offered a positive alternative that reflects our values, our standards and our way of doing business."

The United States later said there was a G7 consensus on the need for a shared approach to China on trade and human rights.

The G7 and its allies will use the B3W initiative to mobilise private-sector capital in areas such as climate, health and health security, digital technology, and gender equity and equality, the White House added.

It was not immediately clear how exactly the plan would work or how much capital it would ultimately allocate.

China's Belt and Road Initiative (BRI) scheme, which Xi launched in 2013, involves development and investment initiatives that would stretch from Asia to Europe and beyond.

More than 100 countries have signed agreements with China to cooperate in BRI projects like railways, ports, highways and other infrastructure.

Critics say Xi's plan to create a modern version of the ancient Silk Road trade route to link China with Asia, Europe and beyond is a vehicle for the expansion of Communist China. Beijing says such doubts betray the "imperial hangover" of many Western powers that humiliated China for centuries.

CHINA'S RISE

Leaders of the G7 - the United States, Canada, Britain, Germany, Italy, France and Japan - want to use their gathering in the seaside resort of Carbis Bay to show the world that the richest democracies can offer an alternative to China's growing clout.

The re-emergence of China as a leading global power is considered to be one of the most significant geopolitical events of recent times, alongside the 1991 fall of the Soviet Union that ended the Cold War.

China in 1979 had an economy that was smaller than Italy's, but after opening to foreign investment and introducing market reforms, it has become the world's second-largest economy and is a global leader in a range of new technologies.

The U.S. official said until now, the West had failed to offer a positive alternative to the "lack of transparency, poor environmental and labour standards, and coercive approach" of the Chinese government that had left many countries worse off.

According to a Refinitiv database, as of mid-last year, more than 2,600 projects at a cost of $3.7 trillion were linked to the BRI, although the Chinese foreign ministry said last June that about 20% of projects had been seriously affected by the COVID-19 pandemic.

As part of the G7 plan, the United States will work with the U.S. Congress to supplement existing development financing and to "collectively catalyze hundreds of billions of dollars of infrastructure investment", the White House said.

CRITICISM OVER CAMPS

Biden made "forceful comments" to G7 leaders about the need to make a strong statement on Washington and rights group say is the use of forced labour in China, but there was a "spectrum of how far different countries are willing to go" in their criticism in a final communique from the three-day summit, another U.S. official said.

The U.S. official later said the G7 had reached consensus on the need for a shared approach on "non-market economic practices" and on human rights abuses, and to coordinate on supply-chain resilience.

The United States has pushed for specific language in the communique about alleged forced labour in the China's Xinjiang region, officials said.

U.N. experts and rights groups estimate over a million people, mainly Uyghurs and other Muslim minorities, have been detained in recent years in a vast system of camps in Xinjiang.

China denies all accusations of forced labour or abuse. It initially denied the camps existed, but has since said they are vocational centres and are designed to combat extremism. In late 2019, China said all people in the camps had "graduated".

The Chinese foreign ministry did not immediately respond to a request for comment.

G7 rivals China with grand infrastructure plan
 

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Comments (20)
Limin Tandiono
Limin Tandiono Jun 15, 2021 10:35AM ET
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A Lesson In History...1. Which countries invaded and occupied Indonesia? Netherlands for 350 years and Japan for 3.5 years.2. Which country was once the colony master of Malaya & India? Britain.3. Which countries invaded and occupied Vietnam? France 1857-1940 & 1946-1954, Japan 1940-1945 and USA (in Southern Vietnam) 1955-1975.4. Which countries were responsible for colonisation of the African continent? Belgium, Britain, France, Germany, Portugal, Spain and Italy.5. Which 8 countries were responsible for the occupation of China in early 20th century? Britain, US, Germany, France, Russia, Japan, Italy & Austria-Hungary.6. Which countries are responsible for colonising and almost annihilating the Red Indians in northern America? France & Britain.7. Which country colonised and almost annihilated Aborigines in Australia and New Zealand? Britain8. Which are the member countries of G7? United Kingdom/Britain, Canada, France, Germany, Italy, Japan & USAAnd now the million
SL Soon
SL Soon Jun 13, 2021 10:33PM ET
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G7 = Copycat 7?
Jack Zhang
Jack_A Jun 13, 2021 8:34PM ET
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the picture already showed strength 🤣
Mike Brarey
Mike Brarey Jun 13, 2021 2:08AM ET
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Sounds like they were busier bashing on China than talking of any actual plan. Inspiring lol
Dave Jones
Dave Jones Jun 13, 2021 2:04AM ET
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everything is awesome!
Mak wk
Mak wk Jun 13, 2021 1:24AM ET
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The world belongs to the White, so as they thought
YC Teng
YC Teng Jun 12, 2021 8:28PM ET
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Greatest money printing parties ever... More to come in a country near you 💵💵🤑
Trevor Roberts
LimitUp Jun 12, 2021 8:16PM ET
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Just put it on the tab. Biggest dine and dash in history
olafemi james
olafemi james Jun 12, 2021 7:20PM ET
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Matt Brackley
Matt Brackley Jun 12, 2021 7:13PM ET
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this is good for 300 points on the nasdaq right?
Ad Cline
Ad Cline Jun 12, 2021 3:56PM ET
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Biden David.. China is very rascist when it comes to its own minorities it builds slave labor camps for some of them. the Chinese learned a lot from the occupation by the Japanese Empire during World War2, including how to run slave labor camps.
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David David
David9 Jun 12, 2021 3:56PM ET
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You are wrong... you hear too much propaganda from the west in news... but actually chinese and vietnamese are like blood brothers... they have the same values because of Confucius and buddhist beliefs.. that is why you see they share the same political systems... these two countries are strong partners for hundred years to come...
Hung Pham
Hung Pham Jun 12, 2021 3:56PM ET
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Ad Cline hey Racist you know nothing about Vietnamese lol
Hung Pham
Hung Pham Jun 12, 2021 3:56PM ET
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David David Vietnamese don’t like Chinese
David David
David9 Jun 12, 2021 3:56PM ET
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How do you know they don't? I have many vietnamese friends and they all love chinese...
Limin Tandiono
Limin Tandiono Jun 12, 2021 3:56PM ET
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You are very true about US only make friend with benefits.... no developing countries will buy in into US self-serving strategy. They knew it all long ago, just don't have the courage to speak up. They only speaks (whisper) among themselves. LoL
Ad Cline
Ad Cline Jun 12, 2021 3:13PM ET
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Sam Donald really...China builds prison and slave labor camps for people of religious and racial minorities and individuals that disagree with official Chinese social, political and economic, policies. They brutality put down and eliminated peaceful protesters when the Chinese elites feel threated. tieinimen square is a good example. Your statements are not based on the truth of Chinese brutality.
David David
David9 Jun 12, 2021 3:13PM ET
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Please stop reading propaganda news... it does you no good... do your research first before make these claims... without actually facts, you are just spilling he said she said...
Limin Tandiono
Limin Tandiono Jun 12, 2021 3:13PM ET
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China eradicated poverty much more than any countries did including US. Yes, China is communist, a less perfect system than democracy, as i myself believe. Yet the China communist leader does more to the welfare of their people than the Western did to their people. Ad Cline, please go to China and witness it yourself.
Limin Tandiono
Limin Tandiono Jun 12, 2021 3:13PM ET
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Very sad, the Democracy system in the west has been abused by politician coupled up with rich coorporations. The rich getring richer, while the poor getting poorer. This is not the original spirit of democracy.
Ad Cline
Ad Cline Jun 12, 2021 2:51PM ET
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David9 how Chinese of you.
David David
David9 Jun 12, 2021 2:51PM ET
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How is it chinese... give us reasons...
Ad Cline
Ad Cline Jun 12, 2021 2:51PM ET
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the way you use derogatory statements and descriptions of your enemies leaders,and their allies, I hope that was instructive. it looks like your training has some holes in it. your superiors have obviously dropped the ball in your training and hopefully it will be soon corrected.
Silence Dogood
Silence Dogood Jun 12, 2021 2:51PM ET
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David David  do your own research.. lol
David David
David9 Jun 12, 2021 11:13AM ET
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Brahahahhaa..... it is easy to say but very hard to actually implement.... these 7 monkeys think they know how to climb up a wall without trees...
Kevin Shaughnessy
Kevin Shaughnessy Jun 12, 2021 10:43AM ET
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Debtor Nations taking on more debt to fund dubious schemes laced with corruption... failure
Sam Donald
Sam Donald Jun 12, 2021 10:18AM ET
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I bet one of the strings attached will be to legalize gay marriage. One of the reasons we can't compete with China is because we like to force our values on others. China on the other hand, don't care about different values they may have with other countries
Steffen vdm
Steffen vdm Jun 12, 2021 9:42AM ET
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Lower taxes on local products, double taxes on Chinese products. Use this to stimulate local companies
Limin Tandiono
Limin Tandiono Jun 12, 2021 9:42AM ET
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This is exactly what Trump did, and he failed to contain China.
Simon Liu
Simon Liu Jun 12, 2021 8:51AM ET
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If you are trying the best to *******the development of China, how can the other countries believe you will support their development? What a joke! Never take the others as idiat!Plus, money simply can not solve the problem.
Edward Chong
Edward Chong Jun 12, 2021 5:43AM ET
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a bit too late now. they should have counter it 5 years ago.
Wooohooo TT
Wooohooo TT Jun 12, 2021 3:32AM ET
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So Belt and Road is not a financial trap now? How loud these nations shouted in the first place that the initiative was a scam?
 
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