HALT CHINESE PROJECTS IN THE REGION, US AUTHORITIES TOLD

AN international bank, from which Trinidad and Tobago has billion-dollar loans, is under pressure from the United States to reduce China’s influence.

US legislators are pushing their country’s Treasury Department to curb the “outsize role” of China at the Inter-American Development Bank (IADB).

The American officials want a reduction in the number of projects awarded to Chinese companies.

The bank finances projects in Latin America and the Caribbean.

Chinese manufacturing and construction companies continue to carry out a number of costly and high-profile ventures in the region.

T&T is being funded by IADB in several ventures, including education, public sector digitisation, water services, the environment, and security.

Just last December, the bank approved a US $80 million loan, as part of a line of credit, for a water project.

IADB’s country strategy for T&T includes “helping to achieve more sustainable and inclusive growth.”

A bipartisan group of US lawmakers claims that China is using the bank as a tool to expand its influence in the region.

The legislators are asking the US authorities to rein in the awarding of projects by Chinese firms.

The group has prepared legislation that seeks to have the IADB report every two years on the scope and scale of Chinese influence and involvement in all aspects of the bank.

The lawmakers also want an action plan for the US to reduce Chinese sway in the IADB.

The lead sponsor of the legislation is Rep. Mike Gallagher, Republican Chairman of a new select committee of the House of Representatives.

The bank lent a total of US $23 billion in 2022.

The US is the largest shareholder, with 30 per cent voting share.

China has less than one per cent share but its companies get a large chunk of projects.

The concerns come at a time when economic and diplomatic relations between China and the region are getting closer and closer.

Trade between China and Latin America and the Caribbean has hit record highs.

The region exported goods to the value of US $184 billion to China last year and imported the worth of US $265 million.

The legislation is supported by members of both sides of the House and is the first planned step to halt China’s rapid advance in the region.