G7 infrastructure plan to rival Belt and Road Initiative could force Chinese firms to ‘match global standards’
- The G7’s Global Investment and Infrastructure Partnership aims to raise US$600 billion by 2027 to fund projects in poor and developing countries
- The initiative, seen as an alternative to the belt and road, is likely to force Beijing to pay greater attention to the quality of its own investments, analysts say
A G7 global infrastructure project intended as a counterweight to China’s Belt and Road Initiative could force Chinese companies to step up standards to better integrate with the rest of the world, analysts said.
The initiative prioritises values-driven, quality and transparent infrastructure projects, according to Group of 7 (G7) members.
Guo Hai, a researcher at the Institute of Public Policy at the South China University of Technology, said the initiative was intended to rival China’s belt and road investments and would force Beijing to rethink standards in areas like data security and digital infrastructure.
China’s economy has a history of needing external forces to bring in reforms
China remains far apart from G7 countries on issues like these and other such as human rights.
“If China can’t integrate domestic rules with the rest of the world, in the long term, I am afraid it will be constrained,” he said.
“But China’s economy has a history of needing external forces to bring in reforms. Biden’s new plan might not be a bad thing for China’s [Belt and Road Initiative] or its domestic market.
“As long as Chinese companies can adjust to local rules overseas, and match global standards, there won’t be big problems.”