US and Taiwan promote alternative to China’s Belt and Road Initiative
- Taiwanese finance minister Su Jain-rong says private sector’s role in funding infrastructure projects will ensure transparency
- Initiative will fund infrastructure projects in Asia and Latin America and is designed to counter Beijing’s growing influence
An informal US-led alliance to provide an alternative to China’s Belt and Road Initiative will provide greater transparency to countries seeking funding to develop their infrastructure, Taiwan’s finance minister has said.
Taiwan and the US are moving ahead with a plan to finance infrastructure and energy projects in Asia and Latin America, using capital raised from the private sector to ensure greater transparency, Su Jain-rong said in an interview on Wednesday. He said he hopes to see the first projects start within the next year or two.
The plan, initiated with the signing of an agreement between the US and Taiwan in September, aims to raise funds through bonds aimed at Taiwanese banks, insurers and other private capital.
It is an opportunity for both Washington and Taipei to counter China’s global infrastructure spree amid concerns about Beijing’s commitment to international projects and worsening finances among developing countries.
The Belt and Road Initiative relies heavily on loans from Beijing to governments and typically involves Chinese state-owned enterprises.