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G7 leaders announced plans to invest hundreds of billions of dollars in infrastructure projects in developing countries.
US President Joe Biden said this initiative would demonstrate the tangible benefit of partnering with democracies.
European Commission President Ursula von der Leyen said the proposed plan would help poor countries deal with the economic shocks caused by the coronavirus epidemic and the consequences of Russia’s invasion of Ukraine.
German Chancellor Olaf Schulz stressed the importance of investing in low-carbon energy sources, in response to what he called Russia’s use of energy as a weapon.
The G7 summit, hosted by Germany, coincides with economic problems faced by various countries of the world due to a significant increase in commodity prices and a shortage of available food.
The crisis was exacerbated by the impact of the Russian invasion of Ukraine, which was the main source of a number of important crops.
Confronting Chinese influence
The “Partnership for Global Infrastructure and Investment” plan, unveiled during the G7 leaders’ meeting, aims to fill a large gap that has emerged as China uses its economic influence to expand its diplomatic relations in various regions around the world.
The US president said that the goal is for the United States to provide $200 billion, while the rest of the G7 countries will provide another $400 billion by 2027.
Biden noted that funding for the kinds of projects currently dominated by China is not “help or charity.”
He explained that such projects “bring returns to everyone, including the American people and the people of all our countries.”
The plan announced by the G7 leaders is believed to be aimed at countering China’s “Belt and Road” initiative.
But unlike the Chinese government-run initiative in Beijing, the funding proposed during the G7 summit will depend mainly on the willingness of private companies to commit to making huge investments.