The US is working with other G7 members to compete with China's Belt and Road Initiative through a network of infrastructure projects, including a railroad connecting Saudi Arabia with Europe, President Joe Biden said.
On the sidelines of the G20 Summit in September, key leaders of the world led by Prime Minister Narendra Modi and Biden had announced the launch of the ambitious India-Middle East-Europe Economic Corridor.
"We are going to compete on that (Belt and Road Initiative) and we're doing it in a different way. The Belt and Road Initiative has ended up in debt and a noose for most of the people (nations) who have signed on," Biden said at a Rose Garden news conference with visiting Australian Prime Minister Anthony Albanese.
He said that they are working with G7 partners to provide infrastructure for those nations.
The Group of Seven (G7) comprises the UK, Canada, France, Germany, Italy, Japan and the United States.
"We want to, for example, at the G20, we were able to act on a proposal to build a railroad all the way from Riyadh all the way through the Middle East, Saudi Arabia, Israel, up through Greece, and not the railroad, but pipeline across the Mediterranean up into Europe," Biden said in response to a question.
The US president said that his previous comment of "extreme competition" with China was not conflict. "I talked about how we're going to compete with China in every way according to the international rules, economically, politically, and other ways, but not -- I'm not looking for conflict," he said in response to another question.
Albanese is headed to China next month. Biden was asked "What do you make of China's re-engagement with Australia?" and "Can Australia trust Beijing, and can Australia do business with China?.
"'Trust but verify' is the phrase. And look, China is having their own internal and external difficulties right now. China's economic growth is stagnant compared to what it was. China has engaged in activities that Russia and many other activities have -- that others have engaged in terms of intimidation and dealing with other countries," Biden said.
"But the fact is that I have met with Xi Jinping more than any other world leader has. I've had over 68 hours of private meetings, with simultaneous interpreters starting back when I was vice president because it wasn't appropriate for a president of the United States to be meeting with the vice president," he said.
Biden said that subsequently, in addition to that 68 hours, "I've also had another, as they tell me they keep meticulous contact, I think, 12, 15 hours of discussions".
He said that last week, he requested USD 3.4 billion in supplemental funds to boost submarine production and maintenance to meet US needs and also support AUKUS.
The AUKUS pact, which is a trilateral alliance between the UK, US and Australia, is seen as a counter to an aggressive China in the strategic Indo-Pacific region, which included its claim over most parts of the disputed South China Sea.
Australia is making a significant investment in the US and its ability to produce submarines as part of this deal, Biden said.
"When we put together the deal, I was asked by Xi Jinping, well, we're just trying to surround China. I said no, we're not surrounding China. We're just making sure that the sea lanes remain open. He doesn't -- unilaterally be able to change the -- rules of the road in terms of what constitutes international airspace and water space, etc. So, that's what this is all about," he said.
The Quad is a very important piece as well. It is about maintaining stability, stability in the Taiwan Straits, the Indian Ocean, that whole area, Biden said.
Under the Quad, Japan, India, Australia and the United States formed a coalition to counter China's aggressive behaviour in the Indo-Pacific region.
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