United States to Launch US$600bn Infrastructure Initiative Across Eurasia to Rival China’s Belt & Road Initiative

• 23 October 2023
• Construction Focus
• 1246 Views

In a move set to reshape global economic dynamics, the United States, in collaboration with India, Saudi Arabia, the United Arab Emirates, the European Union, and other G20 partners, has unveiled a transformative mega-project estimated at over US$600 billion. This ambitious initiative aims to establish a comprehensive economic and trade network that will rival China’s monumental “One Belt One Road” endeavor, according to CFR reporting on 14 September 2023.

The principal agreement, inked on 9 September 2023, during the G20 summit in New Delhi, heralds a new era of global infrastructure development. According to Jon Finer, the US Deputy National Security Adviser, accompanying President Joe Biden, this colossal project encompasses a spectrum of far-reaching plans. Among its highlights are substantial investments in rail and sea transportation infrastructure, poised to unlock trade routes and facilitate the smooth flow of goods. Additionally, the initiative encompasses collaborative ventures in the fields of energy and cutting-edge technology data management.

The core focus of this monumental project centers on enhancing rail connectivity across Arab nations, extending into the Persian Gulf and potentially reaching Israel. The grand vision also includes the expansion of maritime routes, leveraging Indian and Israeli ports to establish vital links with European countries.

European Council President Charles Mitchell underscored the historic significance of this US-led initiative. He emphasized that it would establish a direct and pivotal connection between India and Europe through the region.

Michael Kugelman, a South Asian expert at the Wilson Center, noted that this expansive US project is explicitly designed to compete with China’s One Belt One Road endeavor.

President Joe Biden had previously criticized China’s One Belt One Road initiative, characterizing it as expansionist and primarily serving Chinese interests. He highlighted the concern that it often indebts participating nations and risks compromising their sovereignty.

This groundbreaking agreement, known as the Build Back Better World (B3W) initiative, is a revitalized incarnation of the Partnership for Global Infrastructure Investment (PGII). The White House had previously announced plans to mobilize US$200 billion for PGII over the next five years, combining grants, federal financing, and private-sector investments. In partnership with G7 nations, the ambitious goal is to amass US$600 billion in global infrastructure investments by 2027.

 

• Analysis