US Agency Steps In to Replace Chinese Projects

A new U.S. development arm is stepping onto the world stage, taking over projects that were once under Chinese control. The plan is simple: find places where money can be made and where U.S. influence can grow, then bring in local partners to help finish the work. The team says profit matters, but so does building relationships with people on the ground.

Current Investments

• Mining in Brazil
• Reinsurance scheme for ships near the Strait of Hormuz

The goal isn’t to copy China’s Belt and Road Initiative (BRI); instead, it offers a different approach because the U.S. thinks China’s model isn’t always fair.

The Belt and Road Initiative in Context

The BRI, launched by Chinese leader Xi Jinping in 2013, builds railways and ports across Africa, Asia, and Europe.

• Praise: Speedy travel corridors, such as a China–Europe railway and the Pakistan–China corridor.
• Criticism: Debt traps, asset seizures (e.g., Sri Lanka’s 99‑year lease of a port), lack of local training, closed bidding processes, and limited skill transfer.

A U.S. official recounted an anecdote from Rwanda where locals disliked Chinese workers for their isolation and lack of local investment—an extractive model that misses the point of helping host countries.

Security Concerns

Many BRI projects use technology from firms tied to China’s government, such as Huawei. The U.S. aims to replace such tech with “trusted vendors” that aren’t linked to Beijing, reducing spying risks. For example, the U.S. is working with a major Kazakh telecom company to replace Huawei equipment.

Cost and Value Comparison

Replacing Chinese infrastructure isn’t cheap, but the U.S. believes it can offer better value and fewer hidden costs.

The Bigger Picture

The competition for influence across Africa and other regions is intensifying. The U.S. seeks to offer an alternative that promises profit, local partnership, and security.