THE CONVERSATION: US sparks new development arms race with China – but can it win?

Description

American lawmakers recently created the International Development Finance Corporation (IDFC) to finance infrastructure projects in low-income countries. The IDFC’s primary aim is to counter China’s growing influence, and it signals a dramatic new chapter in the fragile relationship between the US and China.

Tensions between the two countries have been high, as they struggle over trade, intellectual property rights and military control of the South China Sea. They are now also racing to connect the world by financing large-scale infrastructure projects such as highways, railways and ports.