Washington, July 16 (IANS) The Trump administration has announced that it is stepping up investments in South and Southeast Asia as part of a broader strategy to reduce dependence on China for critical supply chains, as the US International Development Finance Corporation (DFC) approved $1.5 billion for energy infrastructure across the region.
The funding is aimed at supporting American liquefied natural gas (LNG) exports and energy equipment while strengthening supply chains in a region Washington considers strategically important amid growing competition with Beijing, officials said on Wednesday (local time).
The announcement came during a House Foreign Affairs Committee hearing on securing critical supply chains and reducing reliance on China.
DFC Chief Executive Officer Benjamin Black told lawmakers the agency is repositioning itself as a key instrument of American economic statecraft under President Donald Trump.
“In June, DFC’s board approved $1.5 billion for energy infrastructure across South and Southeast Asia, ensuring US LNG and American equipment help power the energy needs of a strategic region,” Black said.
Black said the DFC now has “$205 billion of investment capacity” and has rebuilt its investment pipeline to “more than 340 deal opportunities totalling $78 billion” across sectors including agriculture, healthcare, financial services, energy, technology and critical minerals.
He said the agency is focusing on regions vital to US economic security, including East Asia and the Pacific, Central Asia, the Middle East, Africa and the Western Hemisphere.
“Under President Trump’s leadership, DFC is equipped to be a leading force for restoring US economic security,” Black said.
The hearing examined how the United States is using development finance, infrastructure investment and economic partnerships to build resilient supply chains in sectors ranging from energy and telecommunications to artificial intelligence and critical minerals.
House Foreign Affairs Committee Chairman Brian Mast argued that the United States could no longer afford to depend on China for technologies and raw materials critical to its economy and national security.
“The United States cannot remain dependent on China,” Mast said, adding that Beijing had spent decades building influence over mines, processing facilities, logistics networks and technology platforms to gain leverage over the United States and its allies.
Alongside the South Asia initiative, Black highlighted investments in critical minerals, telecommunications and transport infrastructure intended to diversify global supply chains. These included financing for trusted telecommunications providers in Kazakhstan, support for a critical minerals investment consortium and infrastructure projects across Africa.
Officials from the US Trade and Development Agency (USTDA) and the Millennium Challenge Corporation (MCC) also outlined projects designed to improve transport, energy and digital infrastructure in emerging markets while offering alternatives to Chinese-backed investments.
–IANS
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