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flag U.S. lawmakers push back against China’s financial influence in South Asia, citing debt risks and unfair advantages, and launch initiatives to offer transparent, market-driven alternatives.

flag U.S. lawmakers are escalating efforts to counter China’s expanding financial influence in South Asia, citing debt concerns in Pakistan and Sri Lanka and labeling China’s state-backed lending “debt trap diplomacy.” During a congressional hearing on EXIM, officials noted China provided over $23 billion in export credit in 2024—far surpassing U.S. levels—and operates outside international norms, giving Chinese firms unfair advantages. flag To counter this, the U.S. is advancing the China and Transformational Exports Program and proposing “Project Vault,” a $10 billion public-private initiative to build a strategic reserve of critical minerals. flag Lawmakers stress the need for transparent, market-driven alternatives to China’s financing model to protect American economic security and supply chains.

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