EU to Lay Out $46 Billion Technology Plan to Counter China

The European Union will unveil next week its strategy for more than 40 billion euros ($45.9 billion) in technology and infrastructure spending that is a key part of the West’s response to China’s Belt and Road program.

The EU’s “Global Gateway” strategy will focus on digital, transport, energy and trade projects, according to a draft seen by Bloomberg. The plan is aimed at boosting Europe’s interests and competitiveness around the world, while also promoting sustainable environmental standards and values such as democracy, human rights and the rule of law.

The strategy follows a U.S.-led agreement reached during July’s Group of Seven summit where leaders agreed to launch a global infrastructure initiative called Build Back Better World to help narrow the gaping infrastructure need in the developing world and provide a green rival to China’s ambitious initiatives.

Any U.S. or EU effort to counter Beijing’s massive trillion-dollar project to finance infrastructure projects across the developing world is already coming late and will struggle to cut through. The Biden administration has said it hopes that by insisting on transparency and offering alternatives to the onerous debt financing required by the Chinese, the U.S. and allies can offer an alternative.

The Global Gateway plan will “provide an umbrella brand for the already extensive EU investment in infrastructure worldwide,” the document says, to allow better coordination between member states, expand cooperation with international and regional partners and make funding go further.