In an attempt to counter China’s Belt and Road Initiative, President Donald Trump is planning to strike ‘big deals’, as per Marco Rubio, the U.S. Secretary of State.
What Happened: Rubio announced that Washington is seeking to ‘reverse’ projects that boost Beijing’s influence, reported the South China Morning Post.
Earlier this month, President Trump and Indian Prime Minister Narendra Modi agreed to collaborate on the India-Middle East-Europe Economic Corridor, a project designed to enhance transport connections between India, the Middle East, and Europe. The Secretary of State, in a conversation with Breitbart News, stated, “I think there’s more big deals like that coming under President Trump.”
China’s Belt and Road Initiative, a transcontinental infrastructure scheme, has sparked worries in Washington about Beijing’s growing influence. Rubio cautioned that the initiative could “threaten” U.S. interests and result in China dominating its trading partners. However, he reassured that Trump was taking steps to “reverse all of that”.
Rubio also highlighted that nations in the Indo-Pacific, such as Japan, South Korea, the Philippines, Australia, and India, are eager for the U.S. to stay actively ‘engaged and involved’.
Why It Matters: This development comes amid a backdrop of increasing trade tensions. Trump has planned to go ahead with the tariffs on Canada, Mexico, and China, a move that could impact multiple sectors and cause concern for American consumers. On Thursday, Trump announced that the U.S. would not only implement his initially proposed 10% tariffs on all Chinese imports starting March 4, but would double them, resulting in an effective rate of 20%.
Nevertheless, the U.S. is also keen on making trade agreements with China’s Xi Jinping. Rubio also stated that Washington required a diplomatic relationship with both China and Russia. “These are big, powerful countries with nuclear stockpiles. They can project power globally,” added Rubio. Meanwhile, China has kickstarted efforts towards initiating discussions with the U.S. military, signaling a possible easing of recent tensions.
As for the Belt and Road initiative, the U.S. believes that more than 150 countries signing cooperation agreements are at risk of debt traps from China. However, Beijing has dismissed these arguments.
These ‘big deals’ that the U.S. is planning could be seen as a strategic move to counter China’s influence and protect its own interests in the region.
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