When the U.S. Development Finance Corporation (DFC) was launched in 2019, a big part of its mandate from Congress was to counter China’s Belt and Road Initiative. That sentiment was a key theme on Capitol Hill late last year during the DFC’s Congressional reauthorization, when lawmakers from both parties made urgent appeals for the agency to do more to challenge China in the Global South.
Congress nearly tripled the DRC’s budget from $60 billion to $205 billion to be used over the next five years. While that is a substantial increase, it’s just a small fraction of what Chinese entities spend each year on BRI projects.
