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Washington, D.C. — House Foreign Affairs Committee Chairman Michael McCaul issued the below statement following the release of the U.S. Government Accountability Office’s (GAO) report highlighting the substantial investments China is making through the world’s largest infrastructure finance program, the Belt and Road Initiative (BRI). Earlier this year, the House Foreign Affairs Committee passed Chairman McCaul’s DFC Modernization and Reauthorization Act of 2024.

“This report reiterates what I have been warning about for years – China’s Belt and Road Initiative is outpacing U.S. efforts to build strong economic ties with other nations. Congress must pass my bipartisan bill, the DFC Modernization and Reauthorization Act, as quickly as possible and get it to the president’s desk for signature. Without a reauthorization, our nation risks falling even further behind in the great power competition for global influence. We know that countries would prefer to work with the United States over the debt-trap diplomacy offered by China – we just need the tools in place to make them the offer.”

BACKGROUND

Chairman McCaul commissioned this GAO report as part of the fiscal year 2023 NDAA to assess the damaging effects of BRI projects on host countries and U.S. interests. Some key takeaways from the report are:

  • From 2013 to 2021, China significantly outpaced American investment, putting $603 billion towards investment projects through its BRI compared to the U.S.’s $70 billion.
  • From 2013 to 2021, China provided about $346 billion to low-income and lower middle-income countries, and about $332 billion to upper middle-income and other countries. Russia was the largest recipient of BRI assistance, receiving approximately $104 billion from 2013 to 2021, or about 15% of the estimated BRI total.
  • Chinese banks are now the world’s largest source of financing for coal-fired power plants.
  • China is now the world’s largest debt collector, with low-income countries owing China between $1.1 trillion to $1.5 trillion in debt.

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