{"id":2629851,"date":"2026-07-15T05:45:00","date_gmt":"2026-07-15T09:45:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/a-relatively-young-u-s-agency-is-ripping-up-and-replacing-chinese-investments\/"},"modified":"2026-07-15T05:48:45","modified_gmt":"2026-07-15T09:48:45","slug":"a-relatively-young-u-s-agency-is-ripping-up-and-replacing-chinese-investments","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/a-relatively-young-u-s-agency-is-ripping-up-and-replacing-chinese-investments\/","title":{"rendered":"A relatively young U.S. agency is ripping up and replacing Chinese investments"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fa-relatively-young-u-s-agency-is-ripping-up-and-replacing-chinese-investments%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2629851&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The U.S.International Development Finance Corporation (DFC), founded during President Donald Trump&#8217;s management, aims to counter China&#8217;s Belt and Road Initiative (BRI) by investing in profitable projects worldwide that enhance U.S.influence. unlike China&#8217;s large-scale,government-funded BRI,which focuses on infrastructure development across 146 countries,the DFC employs a more selective,profit-driven approach,scrutinizing private investment opportunities and partnering with local entities. It&#8217;s strategy emphasizes replacing Chinese infrastructure with trusted vendors and promoting capitalism as a better development model. <\/p>\n<p>China&#8217;s BRI,launched in 2013,has achieved significant infrastructure milestones like the China-Europe Railway Express and the China-Pakistan Economic Corridor but faces criticism over &#8220;debt trap diplomacy,&#8221; exemplified by Sri Lanka leasing a port after debt default.Chinese projects often involve Chinese workers and companies, limiting local skill transfer and economic benefit while posing security risks through technology firms like Huawei. <\/p>\n<p>The DFC seeks to mitigate these issues by financing projects that involve trusted vendors and replacing problematic Chinese infrastructure, such as telecommunications systems in Kazakhstan. With a maximum contingent liability of $205 billion, the DFC operates far smaller than the BRI&#8217;s $1.5 trillion fund, aiming to demonstrate that capitalism and strategic investment can effectively promote development and counter China&#8217;s global influence.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<article class=\"fn-body\">\n<p class=\"wp-block-paragraph\">The U.S. International Development Finance Corporation is a federal agency with a nondescript, perhaps even boring, name, but officials are pitching themselves to the American people as the \u201ccoolest and best government agency that you\u2019ve never heard of.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Founded by President Donald Trump during his first administration, the DFC was established to \u201ccombat and serve as a bulwark against\u201d China\u2019s <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/world\/3264659\/china-belt-and-road-initiative-outpaces-us-influence\/\">Belt and Road Initiative<\/a> \u2014 the CCP\u2019s campaign to bolster geopolitical power through infrastructure investments in places such as Africa and Central Asia.<\/p>\n<section class=\"explore-more-section\" id=\"wex-recommended-widget\">\n<div class=\"magazine-container single\">\n<h1 class=\"magazine-title mt-2\">Recommended Stories<\/h1>\n<p>             <i class=\"fa-solid fa-play icon\"><\/i>         <\/div>\n<div class=\"explore-grid\">\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/world\/4648174\/how-long-can-iran-play-energy-card\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>How long can Iran play its energy card?<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/world\/4647238\/oil-prices-jump-latest-us-strikes-iran-attacks-gulf-neighbors\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Oil prices jump after latest US strikes and Iran\u2019s attacks on Gulf neighbors<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/world\/4647107\/iran-attacks-two-tankers-hormuz-uae\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>One dead after Iran attacks two tankers in Strait of Hormuz, UAE says<\/h3>\n<p>                         <\/a>                     <\/div>\n<\/p><\/div>\n<\/section>\n<p class=\"wp-block-paragraph\">\u201cBelt and Road \u2014 and its Digital Silk Road \u2014 is in 146 different countries. So I think there\u2019s a lot of territory to cover,\u201d DFC CEO Ben Black, who is set to testify in front of the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/foreignaffairs.house.gov\/committee-activity\/hearings\/ending-supply-chain-dependency-aligning-tools-capital-and-partnerships\" type=\"link\" id=\"https:\/\/foreignaffairs.house.gov\/committee-activity\/hearings\/ending-supply-chain-dependency-aligning-tools-capital-and-partnerships\">House foreign affairs committee<\/a> Wednesday, told the <em>Washington Examiner<\/em> during an interview.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-1\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-1\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-15\" data-wex-ad=\"art-dsk-inart-1\"><\/div>\n<\/div>\n<\/div>\n<div class=\"article-paywall\">\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-large is-resized\">President Donald Trump and Vice President JD Vance hold a swearing-in ceremony for Jim Black, CEO of the U.S. International Development Finance Corporation, and John Jovanovic, Chairman of Exim Bank, Friday, December 12, 2025, in the Oval Office at the White House. (Official White House Photo by Daniel Torok)<\/p>\n<p>&#8221; data-large-file=&#8221;https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/\/2026\/07\/localimages\/Ben-Black-1-e1783977716383.jpg?w=696&#8243; &#8220;https:><figcaption class=\"wp-element-caption\">President Donald Trump and Vice President JD Vance hold a swearing-in ceremony for Ben Black, CEO of the U.S. International Development Finance Corporation, and John Jovanovic, chairman of Exim Bank, on Friday, December 12, 2025. (Official White House photo by Daniel Torok, provided by U.S. International Development Finance Corporation)<\/figcaption><\/figure>\n<\/p><\/div>\n<p class=\"wp-block-paragraph\">The agency\u2019s strategy is straightforward. Officials investigate and scrutinize private investment opportunities in areas of interest around the globe. When they identify a project that looks like it could turn a profit while edifying U.S. soft power in that area, they search for local partners to make it happen and invest.<\/p>\n<p class=\"wp-block-paragraph\">\u201cWe are for-profit, so our deals have to make money, and we bring in local partners to do just that,\u201d Black said. \u201cThere is a lot in Africa who do that. I\u2019d also say we\u2019re really leaning into Central Asia, which has been territory that we\u2019ve let go unnoticed and untouched for a long time, and there\u2019s a lot of interest to work with us there and a lot of desire to lean into the United States.\u201d<\/p>\n<p class=\"wp-block-paragraph\">The DFC has poured money into projects ranging from Brazilian mining deals to a maritime reinsurance plan in the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/strait-of-hormuz\/\" type=\"post_tag\" id=\"21488\">Strait of Hormuz<\/a>.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-2\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-2\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-16\" data-wex-ad=\"art-dsk-inart-2\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">This is not intended to be an Americanized version of the Belt and Road Initiative. It\u2019s an entirely different model with an entirely different philosophy because the U.S. believes that Beijing\u2019s strategy isn\u2019t working out.<\/p>\n<p class=\"wp-block-paragraph\">The Belt and Road was launched by Chinese paramount leader <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/xi-jinping\/\" type=\"post_tag\" id=\"233\">Xi Jinping<\/a> in 2013 as a multi-pronged global development program that would expand China\u2019s influence and growth in neglected regions in Africa, Asia, and Eastern Europe. Chinese workers have been shipped out to countries as far as South Africa, Portugal, and Chile to construct railways, set up economic investment zones, and modernize tech industries.<\/p>\n<p class=\"wp-block-paragraph\">The initiative has chalked up a list of major success stories, such as the China-Europe Railway Express, which shortened shipping to major European cities by weeks. There is also the China-Pakistan Economic Corridor, which connected the two nations through airports, highways, maritime ports, and thousands of miles of highway.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-3\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-3\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-17\" data-wex-ad=\"art-dsk-inart-3\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">But some countries and international bodies warn that China is using the BRI to conduct \u201cdebt trap diplomacy,\u201d a concept <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.chathamhouse.org\/2020\/08\/debunking-myth-debt-trap-diplomacy\/1-introduction\">explained by Chatham House<\/a> as \u201cluring poor, developing countries into agreeing unsustainable loans to\u00a0pursue infrastructure projects so\u00a0that, when they experience financial difficulty, Beijing can seize the asset, thereby extending its strategic or\u00a0military reach.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Hambantota International Port in Sri Lanka is among the most notable casualties of China\u2019s high-interest construction loans. The Sri Lankan government, crushed by debt, settled its BRI outstanding debts to Beijing by leasing over control of the port for 99 years.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-large is-resized\">FILE \u2013 A worker rests between billboards that read: \u201dConstruction of the Serbian-Hungarian railway\u201d in Belgrade, Serbia, Friday, Sept. 4, 2020. In 2014, Hungary and Serbia concluded an agreement with Beijing to modernize the railway between their capitals of Budapest and Belgrade, part of a Belt and Road plan to link up with the Chinese-controlled port of Piraeus in Greece, to the south, an entry point for Chinese goods to Central and Eastern Europe. (AP Photo\/Darko Vojinovic, File)<\/p>\n<p>&#8221; data-large-file=&#8221;https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/\/2026\/07\/localimages\/AP24126772056555.jpg?w=696&#8243; &#8220;https:><figcaption class=\"wp-element-caption\">A worker rests between billboards that read \u201dConstruction of the Serbian-Hungarian railway\u201d in Belgrade, Serbia, on Friday, Sept. 4, 2020. (AP Photo\/Darko Vojinovic)<\/figcaption><\/figure>\n<\/p><\/div>\n<p class=\"wp-block-paragraph\">Other issues arise from the fact that China approaches these projects in a unilateral manner. Chinese workers from Chinese companies are shipped in to complete projects and then are immediately returned to their homeland or shipped elsewhere for another project. Others stay behind and maintain the infrastructure in perpetuity. This means that the locals are sometimes iced out of learning the crucial skills necessary to develop and maintain this infrastructure without the Chinese.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-4\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-4\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-25\" data-wex-ad=\"art-dsk-inart-4\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">\u201cBRI projects are tied to Chinese contractors and conducted through a largely closed bidding process,\u201d according to a <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.cfr.org\/task-force-reports\/chinas-belt-and-road-implications-for-the-united-states\/findings\">report<\/a> from the Council on Foreign Relations. \u201cBecause Chinese workers do most of the construction and then operate the newly built facilities, the transfer of know-how and training of local workers is limited.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Black mentioned this dynamic when he recalled a taxi ride he took years ago in Rwanda. His driver told him how much the locals loved Americans. It was a comment he didn\u2019t take very seriously as a tourist ripe for flattery. But then he said the rider, unprompted, professed how much the same locals hated the Chinese \u2014 as they were driving on a road built as part of the BRI.<\/p>\n<p class=\"wp-block-paragraph\">\u201cI go, \u2018But [the Chinese] built you this road. Are you just telling me that because I\u2019m American?&#8217;\u201d Black recalled. \u201cHe goes, \u2018No, because what happens is they come in and build this road. They use all their own workers. They don\u2019t eat in our restaurants. They don\u2019t drink in our bars. They don\u2019t trade with us. They don\u2019t interact whatsoever. They don\u2019t put money into the economy.&#8217;\u201d<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-5\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-5\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-26\" data-wex-ad=\"art-dsk-inart-5\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">Black derided this as a \u201cpure, fundamentally, extractive model\u201d that doesn\u2019t sit well with those ostensibly benefitting from the infrastructure.<\/p>\n<p class=\"wp-block-paragraph\">There are also security risks. State-aligned Chinese juggernauts such as Huawei are major suppliers for BRI projects \u2014 building out infrastructure like fiber-optic lines, 5G networks, and <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/artificial-intelligence\/\" type=\"post_tag\" id=\"1658\">artificial intelligence<\/a>. Corporations like <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/994832\/huawei-paid-dem-power-broker-tony-podesta-1m-to-lobby-biden-white-house\/\">Huawei<\/a> are deeply entwined with Beijing\u2019s political machine, meaning that their digital infrastructure can serve as a back door for the CCP.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-large is-resized\">FILE \u2013 A Panama Canal worker docks the Chinese container ship Cosco at the Panama Canals\u2019 Cocoli locks, in Panama City, Dec. 3, 2018. (AP Photo\/Arnulfo Franco, File)<\/p>\n<p>&#8221; data-large-file=&#8221;https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/\/2026\/07\/localimages\/AP25064720669559.jpg?w=696&#8243; &#8220;https:><figcaption class=\"wp-element-caption\">A Panama Canal worker docks a Chinese container ship in Panama City on Dec. 3, 2018. (AP Photo\/Arnulfo Franco)<\/figcaption><\/figure>\n<\/p><\/div>\n<p class=\"wp-block-paragraph\">This is one of the most valuable types of opportunities for DFC investment, coming in to replace Chinese projects with \u201ctrusted vendors\u201d not linked to China.<\/p>\n<p class=\"wp-block-paragraph\">Black just returned from a trip to Kazakhstan, where the DFC is interested in a total \u201ctelecom turnover\u201d in partnership with the owner of Tele2, one of Kazakhstan\u2019s largest telecommunications companies.<\/p>\n<p class=\"wp-block-paragraph\">\u201cWe were able to finance and agree to a true rip and replace of Huawei systems and replace it with trusted vendors,\u201d Black told the <em>Washington Examiner<\/em>.<\/p>\n<p class=\"wp-block-paragraph\">Uprooting Chinese infrastructure and replacing it with \u201ctrusted vendors\u201d is a costly process that countries take for a variety of reasons. Sometimes the Chinese digital infrastructure was unsatisfactory. Sometimes it was a roadblock to a more valuable investment from the West.<\/p>\n<p class=\"wp-block-paragraph\"><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/defense\/4576167\/us-competing-russia-china-terror-groups-influence-across-africa\/\">US COMPETING WITH RUSSIA, CHINA, AND TERROR GROUPS FOR INFLUENCE ACROSS AFRICA<\/a><\/strong><\/p>\n<p class=\"wp-block-paragraph\">Unseating Beijing\u2019s dominance in global development is a lofty goal, especially for an agency working with just a fraction of the BRI\u2019s resources.<\/p>\n<p class=\"wp-block-paragraph\">The BRI is a $1.5 trillion campaign funded by the state without expectation of immediate profit. The DCF is operating on $205 billion of maximum contingent liability, a fraction of that funding.<\/p>\n<p class=\"wp-block-paragraph\">\u201c$205 billion is a lot of money,\u201d Black said. \u201cBut it pales in comparison.\u201d<\/p>\n<p class=\"wp-block-paragraph\">Ultimately, the DCF is putting its money on <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/capitalism\/\" type=\"post_tag\" id=\"2239\">capitalism<\/a>, hoping that the distaste for China\u2019s model grows while its profit-making endeavors show foreign allies that capitalism is the best way to get a project done.<\/p>\n<\/div>\n<\/article>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. DFC: The quiet agency challenging China&#8217;s Belt and Road<\/p>\n","protected":false},"author":3468,"featured_media":2629852,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/07\/Ben-Black-1-e1783977716383.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[48105,34402,38812,82735,82734],"class_list":["post-2629851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-chinese-investments","tag-economic-policy","tag-international-trade","tag-investment-security","tag-us-agency"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/07\/Ben-Black-1-e1783977716383.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2629851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3468"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2629851"}],"version-history":[{"count":2,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2629851\/revisions"}],"predecessor-version":[{"id":2629854,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2629851\/revisions\/2629854"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2629852"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2629851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2629851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2629851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}