US State Department requests US$4 billion to outcompete China
- Request includes US$2 billion to create new international infrastructure fund
- US efforts to fund infrastructure in developing countries have been dwarfed by China
The United States must employ “all the tools at our disposal” to outcompete China, a top US State Department official said on Monday, as the Biden administration unveiled its budget request for the 2025 fiscal year.
The request includes US$4 billion over five years in mandatory funding for this purpose, including US$2 billion to create a new international infrastructure fund to provide a credible, reliable alternative to Chinese infrastructure funding, Deputy Secretary of State for Management and Resources Rich Verma told a news briefing.
The other US$2 billion was earmarked for “game-changing investments” to help Indo-Pacific countries push back against “predatory efforts,” he said, adding that those would include efforts to improve governance and the rule of law.
The State Department requested a separate US$4 billion in discretionary funding to cover foreign assistance and diplomatic engagement in the region.
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Chinese President Xi Jinping unveils 8-point vision for nation’s Belt and Road Initiative at forum
US efforts to fund infrastructure in developing countries have long been dwarfed by China’s massive Belt and Road Initiative, a 10-year-old project to build infrastructure and energy networks connecting Asia with Africa and Europe through overland and maritime routes.