Karot Hydropower Project, the first hydropower investment project under the China-Pakistan Economic Corridor, 

will provide Pakistan with clean and cheap electricity and promote its green development. (PHOTO: SCREENSHOT)

Edited by TANG Zhexiao

Rebranding the previous Build Back Better World (B3W) program, the G7 nations launched the Partnership for Global Infrastructure and Investment (PGII) on June 26, aiming to raise 600 billion USD in funding to support infrastructure in developing and middle-income countries by 2027.

Sputnik news agency said this plan is apparently ramping up tensions in the region to impede China's infrastructural projects, including the Belt and Road Initiative (BRI).

According to National Interest, an American bimonthly international relations magazine, PGII was to outcompete China in owning global infrastructure, saying that "However, even worse than failing to outcompete China would be leaving much of the developing world to China."

Trust deficit & economic hurdles

According to a G20 report published in 2017, 94 trillion USD was needed in global investment by 2040 to close infrastructure gaps.

Obviously, the 600 billion USD investment pledge is not enough to plug global infrastructure holes or replace the BRI, said He Weiwen, a former economic and commercial counsellor at Chinese consulates in New York and San Francisco.

Furthermore, it is dubious that the G7 countries will manage to deliver the promised 600 billion USD amid a period of growing inflation and recession.

"Washington claims they are going to be sending over 200 billion USD. But where's the money coming from and how is it going to be really used?" asked Thomas W. Pauken II, a consultant on Asia-Pacific affairs and a geopolitical guest commentator for China's CCTV.

All Africa news website said the G7 also urges using public money to leverage private sector funds. But such initiatives have previously failed to mobilize significant private funding, hardly inspiring hope of meeting the trillion-dollar financing gap.

To make things worse, the U.S. aid effectiveness ranks worst among the world's 27 wealthiest nations, not to mention its pledge to give 100 billion USD annually in climate finance.

Meanwhile, China has built trust in the global community. IMF Managing Director Christine Lagarde approved China's new debt sustainability framework and green investment principles to evaluate BRI projects in 2019. She expected BRI 2.0, "Will serve all of its members well, both today and tomorrow."

Little interest from emerging economies

The PGII cannot be regarded so far as a viable alternative to the Belt and Road Initiative, Sputnik reported.

"First of all, the G7 actually needs to make these projects work," said Pauken, "Other than that solar plant in Angola, I don't see any of these initiatives really working."

In particular, China's outbound direct investment into countries involved in BRI has reached 10.03 billion USD in the first half of 2022, a year-on-year increase of 4.7 percent, according to Chinese Ministry of Commerce.

While the G7 is still considering building an undersea cable linking Europe and Southeast Asia, China kicked off its Digital Silk Road seven years ago.

Many emerging economies including African countries, are increasingly frustrated with the U.S. and the Europe. As Russia's Nezavisimaya Gazeta said, it was not easy for the West to challenge the BRI.

According to a survey released in June, China is viewed as the most influential foreign country with a positive contribution in the eyes of African youth. China is already seen as a reliable partner in fulfilling its commitment in cooperation among African countries, said Alexey Maslov, director of Institute of the Asian and African Studies, Moscow State University.

Improving infrastructure good for development

Since the BRI's proposal in 2013, the initiative has profoundly brought positive change and benefit for more than 60 nations in Asia, Europe and Africa.

"China continues to welcome all initiatives to promote global infrastructure development," said Zhao Lijian, Chinese Foreign Ministry spokesperson, insisting that China is, "Opposed to pushing forward geopolitical calculations under the pretext of infrastructure construction or smearing the Belt and Road Initiative."

Infrastructure has been at the center of global order and development. China has been the developing world's willing, ready, and able infrastructure partner over the past decade, said National Interest.

Despite the G7's new plan being designed to exclude China in telecommunications, clean energy and digital infrastructure, the best results would come from collaborating through joint investments, said He Weiwen.

The ultimate goal of infrastructure is to assist with development, not for ideology. The PGII should serve a greater purpose for collaboration, rather than striving to impede China.