G7 EYES INFRA FUNDING TO COUNTER CHINA PUSH

Leaders of the Group of Seven industrialized countries are set on Saturday to unveil a new initiative to provide financing for infrastructure in the developing world as an alternative to Beijing's "Belt and Road" project, according to senior U.S. government officials, according to Kyodo News.

An announcement is expected on the "Build Back Better for the World" initiative as the leaders continue their talks in Cornwall, southwestern England, with the second day set to include a session specifically focusing on China, an emerging economic powerhouse and strategic rival of the United States.

The first day of the talks centered on ways to help the world recover from the coronavirus pandemic and restore the pandemic-hit global economy.

While details of the proposed infrastructure project are not immediately known, one of the U.S. officials touted that it will not just be an alternative to the Belt and Road Initiative, but is believed to "beat" it by offering a higher-quality choice.

The BRI has been advocated by Chinese President Xi Jinping since 2013 to increase Beijing's influence abroad by financing and building infrastructure projects across Asia, Europe and Africa. It has faced criticism for its record of saddling poor countries with debt.

While criticizing the BRI for its lack of transparency and poor environmental and labor standards, the official said the G-7 had so far not been able to offer a "positive alternative that reflects our values, our standards and our way of doing business."

The remarks come amid an increasing rivalry between the United States and China, with the administration of President Joe Biden framing the competition as a contest between democracies and autocracies.

The official noted that it is not the intention of the United States to force other countries to choose between the world's two largest economies, but rather to show to others that democracies are a better model than autocracies.

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