The UK is to overhaul its development investment arm in a move designed to counterbalance China’s influence in emerging countries by offering “alternatives” to taking on “strings-attached debt”.
Liz Truss, UK foreign secretary, will launch British International Investment (BII) on Thursday, a body that will leverage private capital to invest in countries across Asia, Africa and the Caribbean, offering an alternative to Chinese loans, which are seen by some in the west as a tool to spread Beijing’s influence.
The BII is a revamped version of the government’s Commonwealth Development Corporation Group, which has been historically criticised for investing in purely commercial projects, such as hotels and shopping centres, and for concentrating on more advanced economies.