Development Finance in an Era of China Competition
In today’s episode, we’ll examine the role of development finance in U.S. economic statecraft and Washington’s efforts to compete with China for influence in strategically important areas.
Competition between the United States and China increasingly extends into trade, technology, infrastructure, and critical mineral supply chains. China has used state-backed financing to support overseas infrastructure and resource projects, building economic relationships and, in some cases, dependencies that can serve its broader strategic interests. The United States has sought to offer an alternative by mobilizing private investment, strengthening supply chains, and supporting development projects that advance American economic and national security priorities.
The U.S. International Development Finance Corporation, or DFC, is a central part of this effort. By providing financing, political risk insurance, and other forms of investment support, the DFC aims to mobilize private capital for projects in developing markets that might otherwise struggle to attract investment. Its role has taken on added significance as Washington looks to diversify critical mineral supply chains and reduce strategic dependencies.
I'm pleased to have as my guest today, Conor Coleman, Head of Investments and Chief of Staff at the U.S. International Development Finance Corporation. We’ll discuss the DFC’s mandate, its role in U.S. economic statecraft, and how development finance can advance American strategic interests in an era of intensifying competition with China.
Timestamps:
[00:00] Introduction
[02:10] The Role and Mission of DFC
[03:58] Recent Projects and How They Advance US Interests
[06:37] How the DFC Diversifies Supply Chains
[08:33] Competing with the BRI
[10:33] Success in Mobilizing Partnerships and Direct Investments
[13:20] Balancing Support and Sovereignty
[16:06] Internal and External Indicators of Success
[18:12] Competition with China as a Measure
[19:48] Coordinating with Allies and Partners
[21:03] Prioritizing Competing Goals
[22:38] Challenges for DFC and Defining a Story