EU Global Gateway Initiative Challenges China with $3.16 Billion Investment in Developing Countries and Emerging Markets

EU's Global Gateway scheme aims to offer a sustainable and transparent alternative to China's Road Initiative, focusing on projects in energy, transport, and education that promote green transition and reduce reliance on China for critical minerals.

• The EU Global Gateway initiative, launched two years ago, recently held its first Global Gateway Forum to review developments, inspire and fortify collaborations and brainstorm new projects. The EU's initiative competes with China's Belt and Road Initiative, with an implied focus on fairness and reduced bureaucracy.
• The EU aims to invest €300 billion by 2027 in fewer countries compared to China, focusing on green and sustainable projects in sectors such as energy, medicine, and education. The initiative's first project was the construction of vaccine manufacturing hubs in African countries in 2022.
• The Global Gateway initiative has approximately 60 partners, in contrast to China, which has over 150. However, a country can participate in both the Global Gateway and China's Belt and Road Initiative simultaneously.
• Bangladesh and Vietnam signed agreements during the Forum to develop renewable energies in their countries with the EU's funding, aiming to green-transform Vietnam's energy industry. The EU aims to secure access to minerals and rare earths in Asia and Africa through more deals.
• A significant portion of the investment in the Global Gateway initiative is expected to come from private European companies. Some companies, like Siemens, Volvo, Alstom, and Maersk, that hold stakes in businesses in China are also participating in the initiative. In order to counterbalance China, the initiative aims for rapid implementation, transparent project calls based on sustainability, and prevention of corruption.

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Deutsche Welle CNA Reuters