The historical silk road project, known as the "Belt and Road," which was launched by China in 2013, is expected to shift the routes of trade in the world, as well as lead to massive changes in the fields of economy and politics in the many countries encompassed by this ambitious project.
Western countries and international institutions have always eyed the project with concern, due in no small part to China's goal of becoming the world's largest global economy.
Infrastructure investments made to reach China, Europe, Africa, Latin America, and Asia with new trade routes with the aim of providing access to certain raw materials resulted in debt traps for numerous poor countries situated on the project's path.
Numerous western countries, particularly the U.S., the world's largest economy, have always approached this project launched by China with caution. Should Beijing be able to realize this ambitious undertaking, the economic and political consequences of Chinese influence on the countries where the project is going to emerge led rich western states to swiftly come up with alternatives.
G7 COUNTRIES ARE TRYING TO CIRCUMVENT BELT AND ROAD
G7 countries started a process in this regard at the leaders' summit held in England last year and laid out plans for the project. However, when financial progress was not made, they took a serious step by not only dubbing the initiative the "Global Infrastructure and Investment Partnership" and also outlining its financial resources at the summit held this year.
Thanks to this initiative announced by G7 countries and the investments to be made, it will be possible to nullify the projected results of China's "Belt and Road" project. It's no secret that the investments made by China in the countries that are part of the “Belt and Road”, by loaning funds to these states caused massive problems.
Financing these investments by confiscating the assets of numerous poor African countries that were unable to pay their debts was dubbed neocolonialism.
GLOBAL INFRASTRUCTURE, INVESTMENT PARTNERSHIP, AND FINANCE
At the G7 leaders' summit, which convened in Germany, it was decided to allocate $600 billion within a five-year period within the scope of the "Global Infrastructure and Investment Partnership" for the infrastructure investments of developing countries.
The EU will provide half of the total sum, that is, 300 billion Euros, while the U.S. will cover 200 billion Euros to fund this initiative.
“GLOBAL INFRASTRUCTURE AND INVESTMENT PARTNERSHIP” VS. THE “BELT AND ROAD” PROJECT
It is no secret that the "Global Infrastructure and Investment Partnership" initiative launched by the G-7 countries is an alternative to the "Belt and Road" project, Beijing's plan to revive the old Silk Road.
In the few years to come, there will be serious competition for both sides in Southeast and Central Asia and Sub-Saharan Africa.
It is obvious that many countries, which are in debt, turn to aid and grants to be given under the "Global Infrastructure and Investment Partnership" to get out of this situation, which will be an important obstacle for the project initiated by China.
This marks a new era in trade wars.