Will the West’s answer to China’s belt and road lead anywhere?

Name: Belt and Road Initiative explained
Uploaded: 2021-05-29T04:00:23.000Z
Duration: 2 min 35 s
Description: Belt and Road Initiative explained

The US, EU, Britain, India, Japan – all have mooted plans for an alternative to Beijing’s signature infrastructure initiative that has boosted Chinese influence overseas. But previous attempts have failed

This time around competition could lead to greater choice and deals for regional countries, experts say. However, there is a catch: neither side will be able to admit they are competing

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Workers inspect the tracks of a rail route that links China’s Chongqing to Duisburg in Germany under the Belt and Road Initiative. Photo: Reuters

Maria Siow

Published: 12:00pm, 29 May 2021Updated: 12:51pm, 29 May 2021

A planned meeting of Quadrilateral Security Dialogue leaders in the autumn to discuss how the United States and its allies Australia, Japan and India can fund infrastructure projects is the latest effort towards a Western-led alternative to China’s Belt and Road Initiative that has helped Beijing to grow its influence.

Since the start of the year, the European Union, US, India and Japan have in separate meetings pledged to cooperate more closely on international infrastructure projects, even as US President Joe Biden ramps up infrastructure spending at home. The topic is expected to feature at the upcoming G7 meeting hosted by Britain, after Biden, in a conversation several months ago with British Prime Minister Boris Johnson, proposed a collaboration that could counter the belt and road.

Analysts assessing the potential of a Western-led belt and road have mixed views. Some say the strong global demand for investment in infrastructure as developing economies struggle from the blows to their economy from Covid-19 and the determination of Western politicians to thwart China’s worldwide ambitions could help the plan take off.

Others say it will be an uphill battle given the US and its allies are also facing the fallout from the pandemic, including gloomy economic prospects. Previous efforts had failed, pointed out Suisheng Zhao, director of the Center for China-US Cooperation at the University of Denver.

Zhao pointed to former US president Donald Trump’s attempt in setting up the International Development Finance Corporation in 2017 which was to provide and facilitate the financing of development projects in lower- and middle-income countries. European countries also tried to compete with the belt and road in 2017 by proposing an Asian infrastructure fund.

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Belt and Road Initiative explained

Their failure was mainly due to financial problems in host countries that made it impossible for funds to be allocated, he said.