China Begins Arrival of New Competitors for ‘Silk Road’ Project

Jakarta, CNBC Indonesia The European Union (EU) on Wednesday (12/1/2021) decided to launch a fund mobilization package of 300 billion euros or Rp. 5,200 trillion for world infrastructure development. This is to compete with the Belt and Road (OBOR) project or the modern silk route that China is currently doing.

quote AFP, The program, called Global Gateway, will run until 2027. For funding, the EU will also attract funds from the private sectors of the Blue Continent.

“The Global Gateway will aim to mobilize investments of up to 300 billion euros between 2021 and 2027 … bringing together the resources of the EU, member states, European financial institutions and national development finance institutions,” the agency’s document said.

EU chief Ursula von der Leyen said the program would be a roadmap for major investments in infrastructure development around the world.

“We want to make Global Gateway a trusted brand that stands out for its high quality, reliable standards, and level of transparency and good governance,” said Von der Leyen.

“We firmly believe that this will ensure that investment makes a real difference on the ground. And this is done in a sustainable way.”

Prior to the EU, China launched the OBOR investment strategy in 2013. Officially, OBOR aims to develop land and sea infrastructure to better connect China to Asia, Europe and Africa for trade and development. By 2020, Beijing said it had invested $139.8 billion in countries from Asia, Eastern Europe and Africa. in this program.

Western countries, on the other hand, consider TORCH to be a tool for China to influence poor countries. They criticize Beijing for inciting developing countries to take on too much debt, and accuse the secret tender process of being vulnerable to corruption.

China itself refutes these claims by arguing that it respects its partners’ sovereignty while providing lucrative loans for joint infrastructure projects.

[Gambas:Video CNBC]




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