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What We’re Watching: Global Gateways vs Belt and Road, US-Russia tit-for-tat, Germany’s COVID challenge

The EU rivals China’s Belt and Road Initiative. The European Commission has unveiled its Global Gateways plan, which aims to invest €300 billion globally in infrastructure projects by 2027. Indeed, Brussels is positioning its plan as a better alternative to China’s ambitious Belt and Road Initiative. This announcement comes as Beijing has been steadily upping its investment in the Global South, including a pledge this week to supply Africa with an additional 1 billion COVID vaccine doses over the next three years, as well as doling out $10 billion of trade finance to support African exports. But European Commission President Ursula Von der Leyen points to several advantages for the European plan. One, Global Gateway focuses both on physical infrastructure – like fiber-optic cables, transportation, healthcare and clean energy resources – as well as investment in research and education. And unlike Beijing’s plan, which saddles recipient countries with debt, the EU will provide cash “under fair and favorable terms.” Its plan will also include buy-in from Europe’s robust private sector. Beijing has not commented on the development, but the Chinese foreign minister’s visit to Ethiopia on Wednesday was likely intended to signal Beijing’s enduring commitment to the region.

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