US plans USD 175.8 million cable push in Caribbean to counter China

The Trump administration has proposed major new funding to replace ageing undersea cables in the Caribbean and Central America. The move signals a broader US bid to regain ground against China's influence despite renewed top-level diplomacy.Image used for representational purposes onlyThe Trump administration is preparing to sharply increase funding for programmes aimed at countering China’s growing influence around the world, including a USD 175.8 million plan to replace ageing undersea telecommunications cables in the Caribbean and Central America, according to notifications and documents obtained by The Associated Press.The proposed spending is part of a wider push to restore support for anti-China initiatives that were halted last year during sweeping budget and staff cuts. The move comes even as US President Donald Trump and Chinese President Xi Jinping have projected cooperation ahead of Xi’s expected visit to the US this autumn.Late last week, the administration told Congress it planned to spend USD 175.8 million on replacing outdated undersea cables in the Caribbean and Central America to prevent China from expanding its role in the region’s telecommunications infrastructure. The administration has voiced deep concern over China’s activities in the Americas, including Chinese ownership of ports at either end of the Panama Canal, projects funded through China’s Belt and Road initiative, and Chinese investment in telecommunications.A State Department official said China’s economic activities in the Western Hemisphere pose risks to US national security and prosperity. The official, who was not authorised to speak publicly and spoke on condition of anonymity, said Chinese offers may appear cheaper at first but often become more expensive because of cost overruns, hidden maintenance charges and poor performance. The broader effort could involve nearly half a billion dollars more for programmes in the Western Hemisphere, Africa and Asia, according to an internal State Department document obtained by AP. The document said, "The United States must respond to the CCP’s growing economic, technological, and diplomatic leverage around the world which undermines our national interests." It said many of the proposed programmes were meant to "reclaim diplomatic leverage" in areas where US spending had been stopped after deep cuts led by the Elon Musk-led Department of Government Efficiency, or DOGE.Those cuts dismantled the US Agency for International Development and eliminated several hundred diplomatic posts worldwide. They also affected previously approved projects, including some aimed at countering China. A senior US official, speaking on condition of anonymity about future plans, confirmed the administration’s intention to increase funding to counter China, but said many large projects were still under discussion. The programme described to Congress on Friday is called the "Countering CCP Control of Caribbean and Central America Undersea Cables project". According to the notification, it will "fund the installation of strategically-selected undersea cable infrastructure" and support foreign governments in working with private sector cable installers. The money will "support replacement of outdated undersea telecommunications cables in the Caribbean and Central America region with secure, US and trusted alternatives".Even as it continues with the war with Iran and peace efforts in Gaza and Lebanon, the administration has kept a strong focus on the Western Hemisphere, including moves against Venezuelan leader Nicols Maduro earlier this year, increased pressure on Cuba’s socialist government, and severe sanctions on the government in Nicaragua. Under the new cable programme, funding is expected to go to, or support, projects benefiting El Salvador, Guatemala, Honduras, Nicaragua and Haiti. The document said the US would not work with the Nicaraguan government. China’s embassy in Washington did not immediately respond to requests for comment.At the same time, the administration has drawn up plans to spend more than USD 340 million on more than 50 anti-China projects around the world, including many in the Western Hemisphere, the internal document said. In May, the administration told Congress it had spent several hundred million dollars in counter-China funding from the 2024 budget approved by the Biden administration, although many other projects funded for 2024 and 2025 had been put on hold.Among the projects being considered again are security operations centres in Argentina and Belize to monitor Chinese threats to critical infrastructure and cyber platforms across the region. Other initiatives would aim to protect Ecuador, Jamaica, Mexico, Paraguay, Peru and Uruguay from alleged Chinese attempts to infiltrate port operations and illegally exploit offshore fishing and critical minerals extraction.More broadly, the proposal would seek to counter Chinese influence in the selection of a successor to the Dalai Lama by "developing proprietary technology to ensure secure communications and information collection". It would also aim to push back against international support for China’s space programme and against Chinese firms seeking to export surveillance and censorship technology. The document did not give further details.Trump is expected to meet Xi in September around the annual UN General Assembly gathering in New York. Ahead of that meeting, Secretary of State Marco Rubio met Chinese Foreign Minister Wang Yi last week at a regional security conference in the Philippines. Trump has alternated between anger and praise towards Xi, even as the two sides remain at odds on several issues. The proposed spending, if approved, would mark a renewed and much larger US effort to counter China’s influence across several regions.With PTI Inputs- EndsPublished By: India Today Web Desk Published On: Jul 28, 2026 07:24 IST