World leaders agree a strategic effort to counterbalance Chinese influence—President Xi Jinping was absent.
A landmark move to counter China’s growing influence and boost global infrastructure development has been announced at the G20 summit.
Indian Prime Minister Narendra Modi and U.S. President Joe Biden co-chaired a special event on the Partnership for Global Infrastructure and Investment (PGII) and the India-Middle East-Europe Economic Corridor (IMEC) on September 9, 2023, during the summit in New Delhi, India. The event was attended by leaders from the EU, France, Germany, Italy, Mauritius, the UAE, Saudi Arabia, and the World Bank.
The PGII is an initiative designed to bridge the infrastructure gap in developing countries and accelerate progress towards global sustainable development goals. The IMEC, on the other hand, consists of an eastern corridor connecting India to the Arabian Gulf region and a northern corridor connecting the Gulf to Europe, including a railway and ship-rail transit network and road transport routes.
This historic initiative represents a strategic effort by the participating nations to strengthen economic ties and foster development across Asia, the Middle East and Europe. Those involved say it is a collective move toward creating an integrated and sustainable global economy centered on clean energy, digital connectivity, and secure supply chains.
Importantly, it also poses a direct challenge to China’s Belt and Road Initiative (BRI) by providing countries in the region with an alternative for infrastructure development and economic cooperation. Additionally, it embodies a shared vision among the participating nations for an open, secure and prosperous future, which could be interpreted as a strategic effort to counterbalance China’s expanding influence in the region.
Modi emphasized the importance of physical, digital, and financial connectivity in his remarks, noting that the IMEC would facilitate economic integration between India and Europe.
