During the G20 summit, President Biden and other world leaders will focus on a proposition to boost the lending capacity of the World Bank and IMF by $200 billion. This proposal aims to provide developing and middle-income countries with an alternative to China's Belt and Road Initiative, which the U.S. sees as a strategy for China's regional dominance. The absence of President Xi at the summit is considered a missed opportunity for China, giving the Biden administration a chance to showcase its value proposition to the Global South. It also highlights the need for improved communication and action between the U.S. and China.

President Biden expressed disappointment over Xi's absence and stressed the importance of addressing climate change, development, and the future of the global economy during the summit. The U.S. has criticized China's lending practices under Belt and Road as coercive, imposing restrictions on debt restructuring and giving China leverage over recipient countries. To counter China's influence, the U.S. has allocated $3.3 billion for both the World Bank and IMF in its supplemental budget request. This investment aims to provide non-coercive lending options to low- and middle-income countries and leverage up to $200 billion globally.

China, on the other hand, faces economic challenges, including a property bubble, local government debt, high youth unemployment, and a declining population. Its economic slowdown raises concerns about geopolitical risks and potential security strategies influenced by the economy. At the summit, G20 leaders will also discuss the global impact of Russia's invasion of Ukraine and collaborate on combating climate change. However, concrete agreements in the climate sector are expected to be incremental.

President Biden's subsequent meeting with Indian Prime Minister Narendra Modi emphasizes the significance of the U.S.-India relationship in dealing with an ascendant China and addressing critical issues such as climate change, artificial intelligence, and supply chain resilience. The two leaders aim to strengthen economic cooperation and mutual security interests. Overall, President Biden's participation in the G20 summit and subsequent visit to Vietnam showcases the U.S.'s commitment to being an economic and security partner of choice for its allies, contrasting with China's regional dominance ambitions. The U.S. aims to provide non-coercive lending options, strengthen international cooperation, and address pressing global challenges.