At G20, Biden to pitch U.S. as alternative to China

Reuters Videos
1 年前

STORY: U.S. President Joe Biden is bringing an ambitious message to this weekend’s G20 leaders summit in India.

His offer for the Global South is this: whatever happens to China's economy, the United States can help fund your development.

Biden is hoping to persuade fast-growing economies in Africa, Latin America and Asia that there is an alternative to China's massive infrastructure plan - called the Belt and Road project - which has funneled billions of dollars to developing countries but left many deeply in debt.

Part of that pitch involves reforming the World Bank and boosting its funding under President Ajay Banga for infrastructure in the developing world.

Washington thinks a rebooted World Bank could meet the Global South's needs and serve its own interests.

Here's how U.S. National Security Advisor Jake Sullivan described Washington's focus to reporters on Tuesday:

SULLIVAN: “We know that these institutions are some of the most effective tools that we have for mobilizing transparent, high-quality investment into developing countries. And that’s why the United States has championed the major effort that is currently underway to evolve these institutions so that they are up to the challenges of today and tomorrow.”

Sullivan acknowledged China is a shareholder in the World Bank… and said that World Bank reform is not about Beijing.

But in a letter to Congressional lawmakers last month, the White House said it was (quote) "essential that we offer a credible alternative to the People's Republic of China's coercive and unsustainable lending and infrastructure projects for developing countries around the world."

Biden will have at least one advantage this weekend: Chinese President Xi Jinping will not be at the G20 meetings. Chinese Premier Li Qiang will represent China.

His country has lent hundreds of billions of dollars as part of their project, which envisioned Chinese institutions financing the bulk of the infrastructure in mainly developing nations.

Yet the credit has dried up in recent years and many countries are struggling to repay their debts as interest rates rise.