The Trump administration’s decision to get into infrastructure projects in the Indo-Pacific region – similar to China’s massive Belt and Road Initiative but on a smaller scale – could end up with the US and China working together on some projects, an analyst in Hong Kong has said.
“My thought is, if you end up paralleling some process like Belt and Road, I don’t think it’s too far to imagine the two of them coming together, [and] maybe doing something together,” Brett McGonegal, the CEO of Capital Link International, said in an interview with CNBC.
US Secretary of State Mike Pompeo has just announced plans to spend $113 million on digital economy, energy and infrastructure projects in Asia. It comes at a time when the US and China are involved in trade ‘war’ and is seen by some as a bid to boost American standing and show its desire to remain engaged with Asia.
Both Belt and Road and the American initiative just announced by Pompeo were political endeavors, but getting the green light to undertake infrastructure projects in other states required a lot of “political buy-in”, McGonegal noted.
“I think this may be a way to get to the table, where both parties benefit.”
Brett McGonegal is also a principle shareholder in Asia Times.