EU to announce own infrastructure plan to rival China's Belt and Road Initiative

To compete with China's Belt and Road Initiative (BRI), the European Union (EU) is expected to soon introduce a new overseas infrastructure investment framework. The EU's "Global Gateway" will promote sustainability and the bloc's ideals in an attempt to deepen ties with partners. As the 27-nation bloc strives to increase engagement with the region, the Indo-Pacific framework will focus on digital connectivity, Nikkei Asian Review reported on Monday, November 15. According to a draft of the "European Strategy of Global Gateway Partnerships," the framework will focus mainly on five areas, with emphasis varying by geographical region. Those five areas include, digital transformation, clean energy transition, transportation, people-to-people linkages, trade and resilient supply chains, reported the outlet. 

The draft states that these investments must be extensive, secure, and long-term in order to bring countries, societies, and people closer,  allowing for the twin green and digital transformations in accordance with EU principles, particularly democracy, rule of law, and human rights. "Digital partnerships with important like-minded countries," such as promoting artificial intelligence rules, will be the centrepiece of the Indo-Pacific framework. The EU will also look into forming a connectivity agreement with the Association of Southeast Asian Nations (ASEAN), similar to the ones it has with Japan and India.

The initiative comes as the EU works to put in place its newly announced Indo-Pacific policy, which emphasises the importance of strengthening engagement with like-minded partners in the area for the bloc's security and prosperity, including ensuring reliable semiconductor supply chains. A European Commission's representative stated that their plan is currently in progress and they cannot comment on the details as of now. According to the draft, it is in the EU's interest to ensure that global connectivity evolves "in accordance with Europe's norms, standards, and values," reported the outlet. 

EU expresses scepticism towards Beijing's overseas infrastructure investment strategy

The bloc also aims to "reduce strategic dependencies," which is most likely a reference to reducing its reliance on certain countries in vital sectors like semiconductors, which have been hit hard by the COVID-19 outbreak. The EU also expressed its scepticism towards Beijing's overseas infrastructure investment strategy, as well as the bloc's intention to offer a viable alternative for sustainable development. According to the draft, the EU wants to enhance transparency while also balancing increased investments from other players who utilise the connection to promote their own economic and societal models and further their political agenda.

It should be mentioned here that the resources from the EU, its member states, and development finance institutions are all backing the initiative. Meanwhile, European public funds are intended to leverage additional funding for the initiative in low- and middle-income countries, primarily through the European Fund for Sustainable Development plus (EFSD+), the EU's new investment structure. The EFSD+ provides several billion euros in mixed grants and up to 40 billion euros guarantees in investments, according to the outlet. 

Image: AP