Biden Announces Billions for Latin American Infrastructure to Counter Chinese Influence

US to distribute funding through the US International Development Finance Corporation and the Inter-American Development Bank, acting as an alternative to China's "debt trap" deals; new investment programmed announced at inaugural Americas Partnership for Economic Prosperity Leaders’ Summit.

US President Joe Biden announced a new investment program proposing billions in support to construct infrastructure across Latin America and the Caribbean to counter China's influence in the region.
The funding is to be distributed through the US International Development Finance Corporation and the Inter-American Development Bank, offering an alternative to China's 'debt trap' diplomacy and intended to build 'sustainable' infrastructure and strengthen supply chains.
The announcement was made at the inaugural Americas Partnership for Economic Prosperity Leaders’ Summit, which seeks to deepen economic ties and address migration issues amongst countries in the West Hemisphere.
Twenty-two Latin American nations have existing projects related to China's Road Initiative. Amid this context, Biden emphasised how the new investments aspire to contribute to a 'competitive and resilient' regional economy.
An additional plan announced by Biden is a new fund for 'debt for nature' swaps, where part of a developing nation's debt is forgiven in exchange for local investments towards conservation measures.
Migration is highlighted as a main issue the program aims to address, where the Inter-American Development Bank will be part of an effort to provide $89 million to support countries most affected by migration.