Biden’s Proposed $6.8 Trillion Budget Includes Billions to Counter China

The Biden administration’s $6.8 trillion budget plan that has been proposed on Thursday includes billions in support for Indo-Pacific allies to help counter China’s influence in the region, through infrastructure investments and other support. Acting Deputy Secretary of State for Management and Resources Bass said Washington’s competition with Beijing was “unusually broad and complex” and justified new forms of funding. The administration’s budget proposal faces stiff opposition from Republican lawmakers, although party leaders generally support efforts to counter China.

“Our approach towards the generational challenge posed by the People’s Republic of China (PRC) focuses on investing in our own domestic capabilities, aligning our efforts with those of allies and partners and competing with the PRC where interests and values differ,” Bass said.

The budget proposal for 2024 includes $400 million for a fund to “counter specific problematic PRC behaviors globally,” according to a State Department fact sheet.

Bass further stated that the administration is requesting mandatory spending, in addition to traditional discretionary funding, including $2 billion to support infrastructure projects and $2 billion to strengthen Indo-Pacific economies and support partners to push back against China.

Moreover, the budget proposes funding to boost U.S. presence in the Pacific Islands, where China has been trying to exert its influence.

Although the U.S. funding will likely pale in comparison to China’s Belt and Road Initiative, officials believe that Washington’s efforts are focused on high quality infrastructure and spur private sector investment.

“We are not looking to match China dollar for dollar, in part because any number of Chinese investments… don’t make a lot of commercial sense,” Bass said.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Kraft Heinz Sells Russia Baby Food Business to Local Company

Kraft Heinz has agreed to sell its Russia baby food business to local drinks and snacks producer Chernogolovka, the U.S. food company said on Friday. As Western firms’ exodus from Russia continues, domestic companies continue to benefit from the departure. Chernogolovka has been one of the major beneficiaries of the corporate exodus from Russia in the past year, overtaking Kellogg Co’s local operations and looking to grab a huge market share in the soft drinks market after the departure of Pepsi and Coca-Cola. 

Stellantis Signs Supply Agreement with Australia’s Alliance Nickel

Stellantis signed a supply deal with Australia’s Alliance Nickel to buy both battery grade nickel and cobalt sulphate from the miner’s NiWest project in Western Australia. The agreement marks the latest effort in Australia by Stellantis, the world’s third largest automaker by revenue, as the company sees the country as a significant supplier of battery materials needed for electrification of vehicles. The announcement also comes as Chile has moved to nationalize its lithium industry, another key metal for EV batteries, posing questions among EV manufacturers over the stability of future supplies and prices of battery materials.

Weak Demand for Commodities Shows China’s Underwhelming Economic Recovery

China’s raw materials markets show China’s underwhelming economic recovery, as futures markets for many commodities key to the country’s economy see prices fall amid weak demand. While commodities like copper and oil usually are on the spotlight, other commodities, sometimes overlooked, have been hampered by a slower than expected growth, after Beijing last year abandoned strict pandemic restrictions that have impacted its economic well being. 

Stay informed

error: This content is protected !!