Trump Transforms DFC into America's "Financial Engine", Challenging the World Bank and China

US President Donald Trump appears to have a new ambition to position America as a rival to the World Bank. Through an institution called the DFC (Development Finance Corporation), the Trump administration is now attempting to build a giant financial engine to fund America’s strategic projects around the world. The problem is that its ambitions feel far greater than its capacity. The DFC wants to function as the World Bank, a Wall Street hedge fund, a war insurance company, and a geopolitical tool against China all at once. Yet, its number of employees is even equivalent to a startup—not even 1,000 people. Originally Helping Poor Countries, Now a Weapon Against China Initially, the DFC was established during Trump’s first term to provide loans and investment insurance for projects in developing countries. The difference from typical aid institutions is that the funded projects must still generate profits—not purely charitable. However, the DFC’s direction has now changed completely. The Trump administration is no longer too concerned with classic development issues like poverty alleviation or climate change. Its main focus now is on ways to reduce China’s dominance and make America lead again. For that reason, the DFC is beginning to aggressively draw up plans and fund strategic projects in various countries. DFC’s head of investment, Conor Coleman, emphasised that the institution is indeed targeting massive expansion up to the limit of the latest increased financing ceiling set by the US government. To achieve that target, the DFC plans to carry out around 60-80 investments each year, focusing on the infrastructure sector and various strategic industries, from fossil energy to pharmaceuticals. The targeted projects are also interconnected. This is done to control the entire supply chain. For example, railway projects in Angola and Congo are funded so that African minerals can be sent more quickly to American industries. Aiming to Become a World Bank Rival, But Staff Still in Startup Mode The DFC’s ambitions are now no small matter. The US Congress has even raised its total lending limit from $60 billion to $205 billion. That figure is starting to approach the World Bank’s total loan book of around $285 billion. The problem is that the DFC only has about 700 employees. In comparison, the World Bank has around 21,000 staff. The DFC is increasingly questioned when it states it will enter areas that are not even its expertise. For example, the ship insurance project in the Strait of Hormuz. The DFC intends to participate in guaranteeing insurance for tanker ships in a war zone even though it has almost no experience in the shipping and maritime insurance industries. Besides the high insurance premiums, the real issue in the Gulf region is fear. Ship owners and captains are reluctant to risk their fleets entering routes with the risk of attacks and explosions due to escalating conflicts. Although various DFC investment schemes sound sophisticated on paper, their implementation is far more complex. It’s no wonder that many DFC projects remain at the level of MoUs and press conferences. Some collaborations, such as with Uzbekistan, have not yet produced real investments. Shadows of Conflicts of Interest Behind DFC’s Global Ambitions Amid the grand ambition to turn the DFC into America’s new geopolitical machine, the independence of this institution is starting to be questioned. Spotlight has fallen after several companies linked to people close to Trump began receiving government support in strategic sectors that are now DFC priorities, particularly critical minerals and industrial technology. One widely discussed example is the involvement of a venture fund affiliated with Donald Trump’s eldest son, Donald Trump Jr. The US president’s son is involved in investments in a rare-earth magnet manufacturer that was subsequently supported by the US government through the Department of Commerce. Although all parties deny any improper practices, the situation has sparked concerns about potential conflicts of interest in the DFC’s massive expansion.