EU's One Belt One Road Countering China with 400 Trillion Investment

[Asia Economy Reporter Yujin Cho] The European Union (EU) Commission plans to invest up to 300 billion euros (approximately 400 trillion KRW) in infrastructure projects for developing countries by 2027 in response to China's Belt and Road Initiative.

On the 1st (local time), the EU Commission unveiled the 'Global Gateway' project strategy, focusing on digital, transportation, energy, and health sectors.

The Global Gateway is a trade and infrastructure investment project independently established by the EU to counter China's massive economic bloc initiative, the Belt and Road, which connects the Eurasian continent.

The funding for this project is expected to come from the 'European Fund for Sustainable Development Plus' established by the EU, as well as the treasuries of EU member states and various financial institutions.

Ursula von der Leyen, President of the EU Commission, held a press conference in Brussels, Belgium, stating, "Countries need a better alternative, a true alternative, than China's proposal."

The EU Commission stated in a press release that it will provide financing on fair and favorable terms to prevent developing countries from falling into debt crises.

Furthermore, by supporting developing countries, the EU aims to strengthen its supply chains and enhance its interests and competitiveness worldwide.

Since 2013, China has invested trillions of dollars in infrastructure development in dozens of countries worldwide through the Belt and Road Initiative.

However, Western countries such as the EU and the United States criticize China's Belt and Road as a debt trap that leaves participating countries with surplus facilities and high-interest debt, and have announced various investment plans to counter it.