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Biden announces an economic corridor against China

Biden announces an economic corridor against China

DrThe European Union, the United States and other partners have launched a massive railway and freight project. The project aims to better connect Europe, the Middle East and India, the participants announced Saturday during the G20 summit in New Delhi.

“This is nothing but historic,” European Commission President Ursula von der Leyen said. She spoke of the most direct link yet between India, the Persian Gulf and Europe – with a railway that would speed up trade between India and Europe by 40 per cent. The project is also seen as a response to China’s “New Silk Road” initiative.

US President Joe Biden spoke of a “historic economic corridor”. The United States, India, Saudi Arabia, the United Arab Emirates and the European Union therefore agreed to a similar declaration of intent. The “Axios” news portal had previously reported that it is one of Washington’s “most important initiatives” aimed at curbing China’s influence in the Middle East.

Israel and Saudi Arabia are part of the initiative

Through the “New Silk Road”, China supports infrastructure projects around the world and wants to open up new trade routes to Europe, Africa, Latin America and Asia. It has concluded many agreements with almost all Arab countries.

Jake Sullivan, a security adviser to Biden, said the project aims to boost growth in many vital regions of the world. It would also lead to better integration across the Middle East – involving “some unexpected partners” in the region. India should also be linked with Europe in a way that not only enables “more efficient transportation of goods”, but also promotes cooperation in the fields of energy and digital technology. “We think the project is bold and transformative,” Sullivan said. Presumably, he will find imitators all over the world.


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Will India become the new China?
Photo: Jens Gesell

The project is to be funded, among others, by the European Union’s Global Gateway initiative. It plans to invest up to 300 billion euros in infrastructure for emerging and developing countries over the next few years. The project competes with China’s “New Silk Road”, which the People’s Republic has been working on in many countries for years. For example, projects to produce energy using climate-neutral hydrogen in Africa, and a new underwater cable to transmit data between the European Union and Latin America, have already been planned.