In a move regarded as a threat to China’s regional economic ambitions, a multinational rail and shipping project connecting India with the Middle East and Europe was revealed on the fringes of the G20 meeting in New Delhi.

The corridor, which would connect India, Saudi Arabia, the United Arab Emirates, Jordan, Israel, and the European Union, would improve digital connection while boosting trade and delivering energy supplies.

The network, according to Biden’s national security adviser Jake Sullivan, reflects the vice president’s desire for “far-reaching investments” that result from “effective American leadership” and a readiness to accept other countries as allies.

A hub for economic activity would be established in the Middle East as a result of the improved infrastructure, according to him, rather than serving as a “source of challenge, conflict, or crisis” as it has in the past.

Biden makes the case for Washington as a different partner and investor for developing nations at the G20 conference in an effort to challenge China’s Belt and Road initiative on global infrastructure.

“This is a big deal. This is a really big deal,” Biden said.

The US president claimed the agreement will create “endless opportunities” for installing cable to connect communities and creating renewable electricity.

India is the host country of the summit, and Prime Minister Narendra Modi remarked, “Today, as we embark upon such a big connectivity initiative, we are sowing the seeds for future generations to dream bigger.”

“Enhancing connectivity with all regions has been a key priority for India,” said Modi, speaking through a translator. “We believe that connectivity is a means to not only increase mutual trade between different countries but also increase mutual trust.”

The agreement is being hailed as a “game-changer” by officials.

Officials claim that is an economic corridor built to connect Europe, the Middle East, and India. It will be made up of shipping and railway lines that will cross the United Arab Emirates, Saudi Arabia, Jordan, and Israel.

There are currently very little details available. However, officials from the US and Europe who were there for the announcement hailed it as momentous and a game-changer. According to sources, it will reduce trading time between Europe and India by 40%.

Beijing was not present when the agreement was announced.

China was conspicuously absent from this announcement. This appears to be an obvious attempt to compete with China’s enormous Belt and Road infrastructure effort, which was introduced back in 2013 and aims to link Asia, Africa, and Europe. This idea appears to be a counterweight, then.

Crown Prince Mohammed bin Salman was quoted by Saudi Arabia’s Al Ekhbariya TV as saying at the summit that the new project will involve pipelines for electricity, hydrogen, and railroads and would improve global energy security.

According to Jon Finer, the US deputy national security adviser, during the bloc’s annual summit in New Delhi, the agreement will benefit low- and middle-income countries in the area and enable the Middle East to play a crucial role in international trade.

According to US authorities, it will facilitate the flow of energy and trade from the Gulf to Europe by reducing shipping times, costs, and fuel use by connecting Middle Eastern countries by train and connecting them to India via port.

The European Union, India, Saudi Arabia, the United Arab Emirates, the US, and other G20 partners were scheduled to sign a memorandum of understanding for the agreement.

“Linking these key regions, we think, is a huge opportunity,” said Finer.

There were no immediate specifics available regarding the deal’s worth.

Independent analyst Radha Kumar called it a “wonderful initiative” that will provide competition to China’s Belt and Road project.

“China’s powers are increasing so rapidly that many countries feel the need to have alternatives,” she told Al Jazeera from New Delhi.

However, she went on to say that the new project wouldn’t necessarily threaten China’s ongoing global infrastructure initiative, which already has a separate life.

“India was not part of the Belt and Road Initiative, so this initiative gives connectivity to India.”

The move coincided with US efforts to broker a larger Middle Eastern diplomatic agreement that would see Saudi Arabia acknowledge Israel.

(Adapted from AlJazeera.com)