G7 Leaders Detail a $600 Billion Plan to Compete with China's Belt and Road Initiative

G7 leaders have detailed plans to raise $600 billion in funding for the developing world, seen as a counter to China's Belt and Road Initiative. The Partnership for Global Infrastructure and Investment (PGII) relaunches a scheme announced at the G7 summit in England last year. US President Joe Biden stated that the plan would benefit everyone.

China's multibillion-dollar infrastructure initiative has been criticized for burdening nations with excessive debt. "I want to be clear. This isn't aid or charity," Mr. Biden said of the G7's PGII scheme. "It's an investment that will deliver returns for everyone."

According to the US president, the scheme will allow countries to "see the concrete benefits of partnering with democracies."The plan calls for G7 leaders to raise $600 billion over five years to fund infrastructure projects in middle and low-income countries.

The US has pledged to raise $200 billion (£162 billion) of the total through grants, federal funds, and private investment, while the EU has pledged an additional 300 billion euros (£257 billion). The initiative will aim to combat climate change, improve global health, achieve gender equity, and build digital infrastructure.