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As announced on Monday, an investment venture of the US in Asia might replace China’s investment plans in the region. However, according to statistics, the US plans to invest only $113 million which is minimal compared to China’s trillion-dollar enterprise of Belt and Road.

This makes it clear that Washington doesn’t stand a chance with $113 million against Beijing’s colossal investment plans for the Asia Pacific region.

Secretary of State Mike Pompeo declared that the venture will focus on technology, energy, and infrastructure as per President Donald Trump’s plans in the Indo-Pacific. The entire tentative amount has been split up into parts with a focus on technology and exports.

Possible repercussions of the plan

  • Pompeo stated that this isn’t a competitive initiative by the US; instead, the US is aspiring for healthy partnerships to be made.
  • The Secretary of State also says that this course of action will also show how other countries benefit from an alliance with the US.
  • Brian Eyler, director of the Southeast Asia program at think tank Stimson Center said that there is a possibility of a most supportable and well-tenable set of actions by the US as opposed to the Belt and Road initiative by China but for now, chances look bleak.
  • The plan also offers more opportunities in the region
  • Washington’s involvement with Asia was doubted a year and a half ago, because of Trump’s departure from the Trans-Pacific Partnership trade deal. This might be a second chance to re-establish cordial relations with the Pacific.
  • There is also a possibility of China-US partnership, however distant it may seem. This will also result in major development in the region, with the help of two large world economies.
  • Alternative opinions have also generated from the Asia-Pacific region. They say that the region is self-sufficient and does not have to rely on either China or Asia to further its infrastructure.