The People’s Republic of China (PRC) has strategically positioned digital infrastructure investment at the core of its global strategy. Through state-directed financing, bundled technology offerings, and sustained engagement, China has become the dominant provider of telecommunications infrastructure in large swathes of the Global South, advancing its commercial interests, surveillance capabilities, and technological strategic advantage.
By contrast, the United States and its democratic allies have approached connectivity investment in a fragmented and under-resourced manner, focusing on large-scale upstream assets or narrow technology interventions, leaving last-mile connectivity unaddressed. This report argues that connectivity offers a decisive entry point for countering China’s digital influence and advancing US economic and strategic objectives. It advocates for a blended finance approach, emphasizing that building digital infrastructure is a strategic effort to shape the global internet's future architecture, governance, data flow, and embedded values. Recommendations include reforming the US International Development Finance Corporation (DFC), building enabling environments and markets, catalyzing capital, and coordinating with allies.
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