The European Commission has recently announced a plan called Global Gateway, which aims to raise 300 billion euros (EURO 300 billion) for investment in public and private infrastructure worldwide by the year 2027.
Although the plan does not mention China, it is being seen as a response to China's Belt and Road strategy.
About the Global Gateway Plan
Developmental Dimension: The Global Gateway EU will respond to the immediate needs with the vision of the European countries, which will include the following:
Develop sustainable and high quality digital, climate, energy and transportation infrastructure.
Strengthening health, education and research systems around the world.
Funding: The EU will use its European Fund for Sustainable Development Plus to finance the project.
Under this, 40 billion euros will be made available and grants of up to 18 billion euros will be offered from external aid programs.
Achieving the target of the scheme will require funding from international organizations and the private sector.
Lending will be done under reasonable and favorable conditions to limit the risk of credit crunch.
B3W Project Branch: The EU strategy is a branch of the Build Back Better World (B3W) initiative.
B3W is an international infrastructure investment initiative announced by the Richest Group of Seven (G-7) Democracy in June 2021.
The G7 (Group of Seven) countries have adopted the 'Build Back Better World- B3W' initiative at the 47th G7 Summit to counter China's proposed Belt and Road initiative (BRI) project.
About China before Belt and Road
Introduction: The project was conceived in 2013 by Chinese President Xi Jinping. The BRI initiative is an ambitious infrastructure development and connectivity project proposed by China aimed at connecting China with Europe, Africa and Asia by road, rail and waterway.
It is China's connectivity-focused strategy, envisioning connecting Asia, Europe and Africa by land and sea via roads, rail, ports, pipelines and other infrastructure.
From 2013 to mid-2020, China's total investment was about US $ 750 billion.
China argues that it respects the sovereignty of its partners by providing loans that benefit joint ventures, while critics say the terms of the Beijing agreement violate human, labor and environmental rights.
Criticism of BRI: The BRI project has been heavily criticized by the Western world for the following reasons:
China's Debt Trap Policy: The BRI is seen as part of China's debt trap policy, in which China deliberately lends heavily to other countries for the purpose of making them indebted and seeking economic or political concessions.
Western nations see this as a tool for China to influence poor countries.
They criticized China for inciting the emerging economy to borrow heavily and accused China of corruption.
New Colonialism: He called this initiative New Colonialism or the 21st Century Martial Plan.
The dual nature of production: as well as projects such as the construction of the China-Pakistan Economic Corridor (CPEC), the Colombo Port City project in Sri Lanka are not only commercial in nature but also have strategic implications.
India side
India has repeatedly stated that it will not join the Belt and Road Initiative, as its main component, the China-Pakistan Economic Corridor (CPEC), passes through Pakistan-occupied Kashmir (PoK). It is a disputed area between India and Pakistan.
In addition, to counter China's aggression, India has launched 'Act East Policy' and 'Sea Vision' and India itself has multilateral projects such as 'Asia-Africa Growth Corridor' (AAGC) and 'Free and Open Indo-Pacific' initiative.
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