The $175.8 million programme, titled Countering CCP Control of Caribbean and Central America Undersea Cables project,
seeks to replace outdated cables with secure alternatives, according to a document reviewed by The Associated Press. The funding would target countries including El Salvador, Guatemala, Honduras, Nicaragua, and Haiti, though U.S. officials stated they would not work directly with Nicaragua’s government. The initiative is part of a broader $340 million effort to address what the administration describes as China’s growing economic, technological, and diplomatic leverage,
with projects spanning the Western Hemisphere, Africa, and Asia.
Funding Details and Regional Focus
The State Department’s internal document outlines proposals worth more than $340 million, including security operations centres in Argentina and Belize to monitor cyber threats and protect critical infrastructure. Other initiatives aim to counter Chinese influence in port operations, offshore fishing, and critical mineral extraction in Ecuador, Jamaica, Mexico, Paraguay, Peru, and Uruguay. The administration also plans to use the funding to support projects and push back against Chinese firms exporting surveillance technology, according to the document.
China’s Response and Diplomatic Tensions
In a statement, Lin emphasized that China’s partnerships with developing countries are not about wooing or rivaling anyone
but about jointly safeguarding world peace
and building a community with a shared future for humanity.
The remarks came as U.S. Secretary of State Marco Rubio met Chinese Foreign Minister Wang Yi at a regional security conference in the Philippines, ahead of a planned meeting between President Donald Trump and Chinese President Xi Jinping in September.
 "Photo: Firstpost")
Broader Anti-China Spending and GAO Concerns
Beyond the undersea cable programme, the State Department is considering nearly $500 million in additional spending on initiatives targeting China’s influence. This includes efforts to counter Beijing’s role in the selection of the Dalai Lama’s successor, reduce international support for China’s space programme, and address concerns over Chinese investments in telecommunications and infrastructure. However, a recent Government Accountability Office (GAO) report revealed significant challenges in managing U.S. anti-China spending, noting that nearly $1.2 billion allocated between fiscal years 2020 and 2023 for 470 projects resulted in a “chaotic ledger” with unclear outcomes.
The GAO report highlighted issues such as poor management, missing data, and untraceable expenditures, raising questions about the effectiveness of previous initiatives. Despite these concerns, the administration has moved forward with new funding proposals, arguing that China’s growing influence poses risks. A State Department official stated that while Chinese projects may appear cheaper initially, they often become costlier because of hidden maintenance costs, delays, and poor performance.
Strategic Competition Amid Diplomatic Engagement
The renewed funding push underscores the complex dynamic between the U.S. and China, where strategic competition coexists with diplomatic engagement. While Trump and Xi Jinping are expected to meet in September, the administration’s actions reflect a broader effort to maintain U.S. influence in key regions. The undersea cable project, for instance, is seen as a way to support foreign governments and help them work with private-sector cable installers.
Officials argue that Chinese investments in telecommunications, infrastructure and ports across the Americas pose growing strategic and national security risks. By providing alternative infrastructure and security solutions, the administration aims to counter China’s efforts. However, the effectiveness of these measures remains uncertain, particularly given the GAO’s findings on past spending inefficiencies.
As the U.S. moves forward with its plans, the coming months will test whether the new funding can translate into tangible outcomes. The administration’s success will depend on its ability to navigate both the technical challenges of infrastructure development and the diplomatic complexities of countering a rising global power.
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