The Group of Seven richest democracies attempted to challenge China's expanding impact on Saturday by giving poor nations an infrastructure plan which would compete with President Xi Jinping's multi-trillion-dollar Belt and Road Initiative.

The G7, whose leaders are gathering in southern England and discussing strategic competition with Beijing, is already looking for a clear response to Xi's increased boldness in the aftermath of China's rapid economic and military growth over the last 40 years.

According to the White House and US President Joe Biden and other G7 leaders anticipate the proposal, called the Build Back Better World (B3W) project, would establish a transparent infrastructure partnership to help developing countries cut the $40 trillion required by 2035.

“This isn't simply about facing or facing China,” said a senior official in Biden's administration. “However, until today, we have not provided a good alternative that matches our beliefs, standards, and business practices.” According to the White House, the G7 and its partners would utilize the endeavor to mobilize private sector funding in sectors like climate, health and health security, digital technologies, and gender equity and equality.

China's Belt and Road Initiative (BRI) is a multibillion-dollar infrastructure program unveiled by Xi in 2013, comprising development and investment ventures spanning Asia, Europe, and beyond.

Over 100 nations have signed deals with China to work together on BRI projects such as railroads, ports, motorways, and other infrastructure.

Critics argue that Xi's goal to build a new version of the historical Silk Road trade route to connect China with Asia, Europe, and even beyond is a mechanism for Communist China's growth. Such reservations, according to Beijing, reflect the “imperial hangover” of many Western nations which have insulted China for generations.

The re-emergence of China as a key global power is seen as among the most momentous geopolitical developments in modern history, alongside the demise of the Soviet Union in 1991, which effectively ended the Cold War.

China's economy was smaller than Italy's in 1979, however, after opening to international investment and instituting market reforms, it has grown to become the world's second-largest economy and a worldwide leader in a variety of innovative technologies.

The G7 leaders — the US, Canada, the UK, Germany, Italy, France, and Japan — choose to use their meeting in the seaside resort of Carbis Bay to demonstrate to the world that the world's richest governments can offer an alternative to China's expanding might.

According to the US source, the West has failed to provide a better solution to the Chinese government's "lack of clarity, low environmental and labour standards, and forceful tactics," which has left several nations even worse.

According to a Refinitiv database, more than 2,600 projects totaling $3.7 trillion were related to the Belt and Road Initiative as of mid-last year, while the Chinese foreign ministry stated in June that around 20% of projects had already been significantly impacted by the COVID-19 outbreak.

Sullivan tweeted, “America is crusading the world to force huge multinational businesses to contribute their fair share so that we can invest in our middle class at home.”

By endorsing the initiative, major economies hope to deter multinational corporations from moving earnings – and tax income – to low-tax jurisdictions irrespective of where their sales are produced.

Current worldwide tax standards date back to the 1920s and are incompatible with multinational tech corporate giants that offer services remotely and credit a large proportion of income to intellectual property kept in low-tax jurisdictions.

According to industry lobbyists, US internet giants such as Facebook and Amazon might gain from the deal to adopt a worldwide minimum corporation tax rate of 15% if the final agreement includes eliminates increasingly popular digital services taxes. The decision was predicted after G7 finance officials supported a tax rate of at least 15% during a gathering on June 5. The US Treasury has stated that the G7's approval will give impetus for discussions leading up to a larger G20 finance summit in July in Italy.