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Summary
- The Group of Seven countries have come up with a 'Build Back Better World' (B3W) project to counter China's Belt and Road Initiative (BRI).
- The BRI was launched in 2013 by President Xi Jinping to increase China's influence and make it economically stronger with investment in nearly 70 countries.
- Analysts have called BRI a means for China to gain financial leverage over debt-ridden countries.
The Group of Seven (G7) nations adopted a rival plan to counter China's Belt and Road Initiative (BRI) to build infrastructure in economically weaker and developing nations to strengthen partnership with them. The plan will be known as the 'Build Back Better World' (B3W) project. It was adopted after US President Joe Biden had urged the leaders from top countries to enter a strategic competition with China and take concrete measures to help poorer countries build world-class infrastructure.
Why Belt And Road Initiative Is Facing Resistance?
China is often criticized for lending unimaginable amount of money to smaller countries under the BRI and, most, may not be able to repay this debt. The country has lent money for projects to Asian, African, Latin American, and even some European countries. Political analysts see this initiative as financial leverage over debt-ridden countries and a scheme to boost its clout.
BRI was launched in 2013 by President Xi Jinping to increase China's influence and make it economically stronger. This initiative was reportedly launched to help the country deliver its goods globally via roads. Although China has often denied any ulterior motives behind this multi-trillion-dollar initiative, world leaders seem to think otherwise.
All You Need To Know About B3W
According to The White House, this project would be carried out globally and estimates suggest that the poorer nations need more than US$40 trillion in infrastructure for economic boost due to the impact of the COVID-19 pandemic.
According to Johns Hopkins University, as of Saturday, June 12, the coronavirus pandemic has infected 175.4 million people and has taken the lives of over 3.7 million people since December 2019.
The G7 group comprises the United States, France, Canada, Italy, Germany, Japan, and the United Kingdom. Under the B3W project, funding will be allocated to address issues like climate change, labour safeguards and corruption.
Notably, Italy had signed the BRI in 2019, reportedly causing tensions with the US and the European Union. On a tour of Europe, Chinese President Jinping had visited Italy and the formal signing of the initiative had raised eyebrows across the world.
