The most developed countries have entered into an "investment partnership" to reduce China's influence
The Group of Seven (G7) at this year's Elmau Castle Summit in Germany formally initiates a Global Infrastructure and Investment Partnership aimed at reducing China's influence in developing countries.
The G-7 program is a response to China's Belt & Road initiative, which Western officials say puts countries in a debt trap with investments that benefit China more than countries where it invests.
The White House says the initiative seeks to channel $ 200 billion over the next five years, with similar amounts from G7 allies, to boost infrastructure development in low- and middle-income countries. It is envisaged that most of the funding will come from the private sector and global development funds, and not directly from taxpayers' money.
According to the United States, the G7-backed initiative promotes responsible investments aimed at benefiting the communities where they are placed.
The first initiatives include a $ 320 billion investment in a solar farm in Angola in Southwest Africa, $ 40 million to build a hospital in Ivory Coast, West Africa and $ XNUMX million to promote regional energy trade in Southeast Asia.
European Commission President Ursula von der Leyen said the G-7 offered "sustainable quality infrastructure" and that it would "listen carefully" to developing countries.