This budget positions the United States to up our game in the Indo-Pacific: the frontline in our competition with Beijing.
Will Biden’s ‘little Nato’ G7 unity push cause an ‘economic iron curtain’ to fall over US-China relations?
- The US president must navigate a delicate balance between countering China’s economic coercion and sowing more division, according to observers
- Washington risks earning further ire for ‘inciting bloc confrontation’ – accelerating decoupling and driving China closer to Russia, they say
US President Joe Biden is expected to emphasise unity among Group of Seven countries during his visit to the Asia-Pacific, and highlight Washington’s dedication to the region amid escalating tensions with China and the ongoing conflict in Ukraine, analysts said.
Biden is attending a G7 summit this Friday in Japan’s Hiroshima, where he will deepen ties with long-time allies. He had then planned to travel to Papua New Guinea as the first sitting US president to visit the tiny island state and head to Sydney for a meeting with leaders of the Quad – but late on Tuesday scrapped the latter two stops in favour of returning to the US to negotiate with Republicans over raising the US debt ceiling.
While seeking to reassure partners at the G7 summit, Biden must navigate a delicate balance between countering China’s economic coercion and avoiding further division among US allies, observers said. . ."
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The Indo-Pacific is the most dynamic and fastest growing region in the world – with 50% of its population, 60% of global GDP, and eight out the top 10 U.S. export markets.
It has driven 75% of global economic growth over the past five years. China invests 50% of its assistance and economic and diplomatic resources there.
Our budget proposal will allow us to further deepen our diplomatic footprint in the Indo-Pacific – with $140 million in discretionary funding for new missions in the Pacific Islands and a surge of new positions in the region and beyond, including in the areas of greatest contestation with Beijing like technology, economics, and regional and international organizations.
. . .We are not demanding that other countries “choose” between us and China – but rather, are offering a more attractive choice. If we can spark a race to the top, that would be to everyone ’s benefit. Our budget sets us up to work with like-minded partners to strengthen our offer, and ensure it is relevant and responsive to the needs and aspirations of people around the world. That’s why our budget includes $2 billion in new investments in high-quality, sustainable infrastructure, rather than low-quality, opaque, extractive projects that leave countries mired in debt.
It would invest $2 billion to bolster Indo-Pacific economies and help the United States compete in areas where the PRC currently dominates and in key priorities for the region, including maritime security, disease surveillance, clean energy, and digital technology.
This complements nearly $2.2 billion in discretionary funding for our Indo-Pacific partners to support critical investments in good governance, rule of law, clean energy, health security, security assistance, and vital regional institutions.
And it contains over $7 billion to extend our economic engagement with the Freely Associated States via the Compacts of Free Association: a critical component of the Administration’s Indo-Pacific and National Security Strategy.
Secretary of State Antony J. Blinken
Senate Appropriations Committee Hearing on U.S.-China Competition
May 16, 2023
LINK: https://www.appropriations.senate.gov/imo/media/doc/SecState%20Blinken%20Testimony.pdf
"Chair Murray, Vice Chair Collins; State and Foreign Operations Chair Coons and Ranking Member Graham; distinguished members of the Senate Appropriations Committee: thank you for the opportunity to testify before you.
I’m pleased to be here with Secretary Austin and Secretary Raimondo.
This Administration is committed to leading a bipartisan, whole-of-government China strategy that advances U.S. interests and values and delivers for the American people. We stand at an inflection point. The post-Cold War era is over.
There is an intense competition underway to shape what comes next.
China represents the most consequential geopolitical challenge we face today: a country with the intent and, increasingly, the capability to challenge our vision for a free, open, secure, and prosperous international order.
We of course cannot dictate Beijing’s path. And we cannot wait for China to change its trajectory. But we can put ourselves in a position of strength to compete intensely to shape the broader strategic environment around China and advance our vision. We are not trying to contain China. And in fact, the United States continues to have a comprehensive trade and investment relationship with China, as do most of our allies and partners. We are for de-risking and diversifying, not decoupling. That means investing in our own capacities and in secure, resilient supply chains; pushing for a level playing field for our workers and companies and defending against harmful trade practices; and ensuring that U.S. and allied technology isn’t used against us. . . .
Blinken Gives Startling Testimony to U.S. Senate Committee on Appropriations
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