Macroscope | The US-China trade war is drawing a new battle line over megaproject funding. At least it will be good for infrastructure
- The signs of the new battle front can be seen from Italy’s endorsement of China’s Belt and Road Initiative (BRI) and the naming of a Trump loyalist to head the World Bank
The United States and China, locked in a trade war, are now poised to enter another battle over infrastructure.
The signs can be seen in Italy’s foray into China’s Belt and Road Initiative (BRI), and the naming of a Trump loyalist to head the World Bank.
Donald Trump and Xi Jinping have a lot riding on this infrastructure combat, which is all about global strategic advantage and economic rivalry.
Up to now it had been a rivalry between governments, but now it is pulling in two international development institutions. What some describe as China’s covert plan to secure strategic access to Eastern and western Europe via Central Asia through new highways, railways and ports under the Belt and Road Initiative (BRI) is facing an increasingly robust response from the US and its key allies.
The fact that Italy is the first Group of Seven (G7) country to endorse China’s BRI is of considerable significance. It has to do with the global deployment of institutional and financial firepower.