Targeting Undersea Cables and the 'Dalai Lama': Trump Administration Boosts Anti-China Budget, China's Advance in the Western Hemisphere Stalls

The Trump administration is preparing to significantly increase funding by hundreds of millions of dollars for initiatives aimed at countering China's expanding global influence. This marks a contrast to last year, when many related initiatives were paused due to budget cuts and staff reductions. Over the weekend, the administration notified Congress of its plan to allocate $175.8 million to replace outdated undersea telecommunications cables in the Caribbean and Central America, preventing Chinese influence. The Associated Press obtained this notification document on July 27. The U.S. government has expressed deep concern over China's economic activities in the Americas, including countering China's ownership stakes in ports at both ends of the Panama Canal, infrastructure projects funded by China's Belt and Road Initiative, and investments in the telecommunications sector. A U.S. State Department official, speaking anonymously without authorization to discuss the matter publicly, stated that China's economic activities in the Western Hemisphere pose risks to U.S. national security and prosperity. The official noted that while Chinese proposals may initially appear cheaper, they often end up more expensive due to cost overruns, hidden maintenance fees, and poor performance. This undersea cable funding appears to be part of a broader effort to revive programs countering China's global influence, with billions more expected to be invested. These efforts continue even as President Trump and Chinese leader Xi Jinping currently display cooperative gestures, with Xi expected to visit the U.S. this fall. According to internal State Department documents obtained by the Associated Press, the department is considering investing nearly $500 million in anti-China initiatives across the Western Hemisphere, Africa, and Asia. The document states: 'The United States must respond to the Chinese Communist Party’s growing economic, technological, and diplomatic influence around the world, which is undermining our national interests.' Many proposed programs aim to 'regain diplomatic leverage' by reinvesting in areas previously funded but halted last year due to major budget and personnel cuts led by Musk’s Department of Government Efficiency (DOGE). These cuts disbanded the U.S. Agency for International Development and eliminated hundreds of diplomatic positions worldwide, affecting previously approved projects, including some countering China. Chinese Foreign Ministry spokesperson Lin Jian stated that China's cooperation with other regions 'is not about wooing or confronting anyone, but about safeguarding world peace, promoting global development, defending the international order, and building a community with a shared future for humanity.' A senior U.S. official, discussing future administration plans anonymously, confirmed that the Trump administration indeed intends to increase funding to counter China but could not elaborate on specifics. The official acknowledged discussions on large-scale projects, though many remain in the discussion phase. The plan, explained to Congress on July 24, is named the 'Countering CCP Control of Caribbean and Central American Undersea Cable Project.' The notification document states that the project will 'fund the installation of strategically significant undersea cable infrastructure' and support foreign governments and private undersea cable installers. Funds will 'support replacing outdated undersea telecommunications cables in the Caribbean and Central America with secure, U.S., and trusted alternatives.' Even as the Trump administration handles the Iran war and peace efforts in Gaza and Lebanon, it remains focused on the Western Hemisphere, including the earlier arrest of Venezuelan leader Maduro, continued pressure on Cuba’s socialist government, and strict sanctions on Nicaragua. According to the document, the new plan is expected to fund or support undersea cable projects benefiting El Salvador, Guatemala, Honduras, Nicaragua, and Haiti. However, due to tense U.S.-Nicaragua relations, the U.S. will not cooperate with Nicaragua’s government. Lin Jian stated that undersea cables benefit people worldwide, and China is willing to work with other countries to promote their construction and protection. In Beijing, he said: 'Politicizing or securitizing them only disrupts international market rules, threatens global digital connectivity and cybersecurity, and serves no one’s interests.' Meanwhile, the administration has drafted plans to invest over $340 million in more than 50 specific anti-China projects globally, many located in the Western Hemisphere. This internal State Department document outlines various proposals. In May, the administration notified Congress that it had already used hundreds of millions of dollars from the 2024 budget allocated for anti-China efforts, approved under the Biden administration. However, many other projects approved for 2024 and 2025 have been suspended. Proposed revived programs include establishing secure operations centers in Argentina and Belize to monitor Chinese threats to critical infrastructure and online platforms in the region. It also includes protecting Ecuador, Jamaica, Mexico, Paraguay, Peru, and Uruguay from alleged Chinese attempts to infiltrate port operations, illegal offshore fishing, and critical mineral extraction. More broadly, this still-under-review proposal aims to counter China’s influence over the Dalai Lama’s successor, 'by developing proprietary technology to ensure secure communications and information collection.' It also seeks to counter international support for China’s space program and Chinese companies’ attempts to export surveillance and censorship technologies. The document does not detail these initiatives. Trump is expected to meet Xi during the UN General Assembly in September, when world leaders gather in New York. In preparation, U.S. Secretary of State Rubio met last week with Chinese Foreign Minister Wang Yi at a regional security conference in the Philippines. Trump’s attitude toward Xi alternates between anger and delight, as U.S. leaders attempt to cultivate Xi as an ally while China pursues many goals contrary to the Trump administration’s objectives. The ultimate impact of these proposed new programs may not be clear for months or even years.