{"id":10699,"date":"2022-07-29T07:30:26","date_gmt":"2022-07-29T07:30:26","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=10699"},"modified":"2025-04-23T09:38:15","modified_gmt":"2025-04-23T09:38:15","slug":"pgii-and-bri-a-tale-of-misunderstandings","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/pgii-and-bri-a-tale-of-misunderstandings\/","title":{"rendered":"PGII and BRI: A Tale of Misunderstandings"},"content":{"rendered":"

In June, the G7 proposed its new \u2018Partnership for Global Growth\u2019 (PGII) as a greener, more sustainable alternative to China\u2019s Belt and Road Initiative (BRI). Unfortunately, PGII is based on several misconceptions about Chinese outbound investment and risks repeating some of China\u2019s mistakes, writes Torsten Weller<\/span><\/h2>\n

At the summit in Germany in late June, the heads of government of G7 countries announced the launch of a USD600 billion infrastructure programme \u2013 now called the Partnership for Global Infrastructure (PGII) \u2013 to boost investment in developing countries. Although this is undoubtedly a positive signal, its framing as a \u2018competing offer\u2019 to China\u2019s Belt and Road Initiative (BRI) highlights the misunderstanding which \u2013 nearly a decade after its inception in 2013 \u2013 still plagues Western governments\u2019 thinking about China\u2019s engagement with third countries.\u00a0<\/span><\/span><\/p>\n

According to the White House communique, PGII aims to mobilise USD600 billion in infrastructure investment from G7 countries by 2027, including USD200 billion from the United States alone. The programme wants to \u201cdeliver quality, sustainable infrastructure that makes a difference in people\u2019s lives around the world, strengthens and diversifies our supply chains, creates new opportunities for American workers and businesses, and advances our national security.\u201d\u00a0<\/span><\/span><\/p>\n

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Beijing\u2019s reaction was rather positive. As Zhao Lijian, the spokesperson of the Chinese Ministry of Foreign Affairs, noted at a press conference, \u201cChina always welcomes initiatives that promote global infrastructure.\u201d Zhao, of course, pointed out that PGII and BRI can be complementary and should not exclude each other based on geopolitical considerations.\u00a0<\/span><\/span><\/p>\n

China\u2019s response should come as no surprise to those familiar with BRI projects and developments. What\u2019s more, a proper analysis of the strengths and shortcomings of China\u2019s experience in overseas infrastructure projects is essential if PGII is to become a successful tool to help developing countries and Western businesses operating in them.<\/span><\/p>\n