Biden Describes Shifting Geopolitical Alliances As ‘A Real Big Deal’

At the recent G20 leaders’ summit in New Delhi, President Joe Biden’s handshake with Saudi Crown Prince Mohammad bin Salman made a surprising turn of events in the U.S.-Saudi Arabia relationship. Just a year earlier, Biden had warned of consequences after OPEC, led by Saudi Arabia, cut the crude production to boost prices during Russia’s war in Ukraine. 

However, Saudi Arabia has now become one of six new invitees to the China-dominated BRICS coalition and a signatory to Biden’s pact for an economic corridor connecting India with Middle Eastern and European Union countries, seen as a counter to China’s Belt and Road Initiative.

This development highlights the complex web of economic and strategic opportunities emerging as countries navigate between the U.S. and China, seeking to build their alliances and spheres of influence. While the U.S. and Western nations aim to “de-risk” their economies from China, it is also leading to a fragmented global economy characterized by protectionism and nationalism.

Read also G20 Nations Seek to Expand Lending Capacity of Multilateral Banks to Counter China’s Influence

Biden’s infrastructure pact aims to connect India with the Middle East and Europe through two corridors, focusing on existing ports and railway lines. This approach appears to be lower risk and may utilize infrastructure already built under the Belt and Road Initiative.

In the midst of these developments, India’s Prime Minister Narendra Modi is positioning India as a leader of the developing world, emphasizing the interests of the Global South. The partnership between India and the U.S. is growing as part of the Indo-Pacific strategy to counter China, but global supply chains are aligning along shifting geopolitical lines, leading to a more fragmented world economy.

While the desire for greater prosperity calls for collaboration, the reality is that supply chains and alliances are evolving in response to changing global dynamics, creating a complex and multipolar world. The key challenge is to foster economic integration without excluding others.

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