The European Commission announced Wednesday it plans to mobilise over 300 billion euros US $340 billion in public and private infrastructure investment around the world, a move seen as a response to China's Belt and Road strategy.
Between 2021 and 2027, Global Gateway will aim to bring together resources of the EU, member states, European financial institutions and national development finance institutions, according to a commission document.
The Global Gateway plan doesn't mention China's rival and longer-standing international infrastructure strategy by name, but EU chief Ursula von der Leyen said it's a roadmap for major investment in infrastructure development around the world. Money will not come from EU and member state coffers, and the plan will need funding from international institutions and private sector if it is to get anywhere near its target.
In 2013 China launched its global investment strategy known as Belt and Road, a flagship project of President Xi Jinping. Beijing invested $139.8 billion in the year 2020, including US $22.5 billion last year.
It aims to develop land and sea infrastructure to connect China to Asia, Europe and Africa for trade and development, and it has found many partners around the world.
The West sees it as a tool for China to influence poorer countries. They criticise Beijing for inciting emerging economies to take too much debt, and allege that the secretive tender process is prone to corruption.
China says it respects its partner's sovereignty while providing loans that benefit joint projects, while critics say Beijing's contractual terms ignore human, labour and environmental rights.
The EU strategy is an offshoot of a plan by G 7 countries to offer developing countries an alternative to Belt and Road presented at the industrial powers' summit in Cornwall in June.
Jutta Urpilainen, EU commissioner for international partnerships, defended the bloc's performance, telling reporters that European development aid between 2013 and 2018 was very close to the level of Belt and Road funding.
Mobilizing funds is also something that is important. The EU plan aims to share European technology and expertise with developing economies.
Von der Leyen said Global Gateway is a trusted brand that stands out because of high quality, reliable standards and a high level of transparency and good governance.
We are convinced that investment will make a real difference on the ground. This is done in a sustainable way.