EU to invest €150 bn in Africa as a counter to China’s Belt & Road Initiative

Brussels/Beijing: A new development has occurred in the ongoing tensions between Europe and China over issues such as Hongkong, Xinjiang, Taiwan- Lithuania. European Union has declared to invest €150 billion in the African continent to challenge China’s ambitious Belt and Road Initiative. The European Commission announced it on Thursday. Consequently, it also revealed that this investment would be a part of the European Union’s ‘Global Gateway’ project.

Chinese President Xi Jinping had announced the ambitious Belt and Road Initiative (BRI) in the last decade. Its main objective was to augment China’s influence in various countries through this infrastructure. Over the past few years, China has made the scheme a part of its preying economic strategy. Besides, it uses it to seize resources from poor and underdeveloped countries. It is believed that the worst-hit are the countries from the African continent.

Moreover, China has invested over $100 billion in Africa under the Belt and Road Initiative. Most of these investments are in the form of loans granted by Chinese banks. In return for these loans, the Chinese communist regime seems to have begun to take control of ports, airports and mines in Africa. It is also revealed that these Chinese banks have started abandoning the projects halfway due to non-repayment and non-receipt of the required collateral.

A few days ago, it had surfaced that Chinese Banks had abandoned a railway project halfway. Thus, as per the reports, Nigeria had demanded assistance from Europe to complete this project. Against this background, the investment worth €150 billion stands significant. Besides, while informing about the Global Gateway project, the EU Officials have also indicated prioritising African nations.

Two years ago, Japan had challenged the BRI project via its ‘Partnership for Quality Infrastructure’ programme. Australia and New Zealand have also announced separate funding for smaller island nations in the Pacific. Then in June, the G7 shocked China by announcing the Build Back Better World (B3W) program. Following this, Europe seems to have dealt a significant blow to China’s preying economy by announcing enormous funds for Africa.