Biden proposes over USD 25 billion spending in Indo-Pacific to out-compete China

US President Joe Biden on Thursday proposed more than USD 25 billion spending, mostly in the Indo-Pacific region, in particular in the critical infrastructure sector and defence to out-compete China, amid Beijing's increasingly assertive presence in the strategic region.

 

This includes over USD 15 billion of proposed investment in the infrastructure sector in the Indo-Pacific and USD 9 billion for shoring up American defence in the region.

 

 

"This Budget cements our commitment to confronting global challenges and keeping America safe. It outlines crucial investments to out-compete China globally and to continue support for Ukraine in the face of unprovoked Russian aggression," Biden said in his message to the Congress.

 

Biden said it also continues his administration's work to restore America's global leadership - reviving key alliances and partnerships, strengthening the military, fostering democracy and human rights, protecting global health, honouring the veterans, fixing immigration systems at home, and advancing cybersecurity through implementation of the National Cybersecurity Strategy.

 

China is the United States’ only competitor with both the intent to reshape the international order and, increasingly, the economic, diplomatic, military, and technological power to do it, according to Biden's budgetary proposals sent to the Congress Thursday noon.

 

During these unprecedented and extraordinary times, the Budget requests both discretionary and mandatory resources to out-compete China and advance American prosperity globally, the White House said.

 

 

 

The Budget includes more than USD 2.3 billion in discretionary funding for the Department of State and the US Agency for International Development to support an open, secure, and connected Indo-Pacific and implement the Indo-Pacific Strategy to strengthen and modernise America's alliances and partnerships in this vital region, the White House said.

 

This total includes USD 90 million for the Association of Southeast Asian Nations and USD 50 million for the advancement of the Indo-Pacific Economic Framework for Prosperity.

 

In addition, the Budget expands funding for US diplomatic presence throughout the region, with particular focus on the Pacific Islands. According to the White House, the mandatory proposal to Out-Compete China will strengthen the US role in the Indo-Pacific and advance the US economy by investing USD 2 billion to create a new International Infrastructure Fund to support “hard” critical infrastructure.

 

It proposes another USD 2 billion to create a new equity revolving fund at the US International Development Finance Corporation to support equity investments; and USD 2 billion to make game-changing investments in the Indo-Pacific to strengthen partner economies and support their efforts in pushing back against predatory efforts.