US resumes foreign aid to counter Chinese influence

US resumes foreign aid to counter Chinese influence
Photo: Collected

Online Desk

Published: 2026-07-28 15:04:43

The United States administration is preparing to allocate hundreds of millions of dollars to resume international programmes designed to counter China's expanding global influence. The strategic shift follows sweeping budget and personnel reductions implemented last year that halted several diplomatic and infrastructure initiatives across the developing world.

Congress was notified late last week of plans to direct 175.8 million dollars towards replacing outdated undersea telecommunications cables across the Caribbean and Central America. According to official documents obtained by news agencies, the project aims to prevent Beijing from establishing a dominant position in regional communications infrastructure.

American officials have voiced growing concern over Chinese commercial activities across the Americas, highlighting ownership stakes in ports surrounding the Panama Canal, investments in regional telecommunication networks, and infrastructure projects financed through the Belt and Road Initiative.

A State Department official confirmed that Beijing's economic expansion in the Western Hemisphere poses security and economic risks to Washington. Speaking anonymously, the official noted that while Chinese proposals may initially appear less expensive, long-term costs often rise due to maintenance fees, project overruns, and technical shortcomings.

The undersea cable initiative forms part of a wider State Department proposal considering nearly half a billion dollars in spending across the Western Hemisphere, Africa, and Asia. An internal department document indicates that the funding aims to reclaim diplomatic leverage lost after previous budget reductions, led by the Department of Government Efficiency, resulted in severe cutbacks at the US Agency for International Development and the removal of hundreds of diplomatic posts.

Additional plans under consideration include over 340 million dollars for more than 50 targeted global projects. Proposed measures include establishing cybersecurity hubs in Argentina and Belize to protect local infrastructure, alongside initiatives to safeguard maritime boundaries and critical mineral resources in nations such as Mexico, Peru, and Ecuador.

The diplomatic push comes as President Donald Trump prepares to meet Chinese President Xi Jinping in September during the United Nations General Assembly in New York. While the two leaders have sought to maintain working relations, Washington continues to pursue policy measures designed to limit Beijing's international economic reach.