Countering China: Agencies Provided Over $1 Billion but Have Not Assessed Overall Results of Projects
Fast Facts
China and the U.S. are competing for global economic and geopolitical influence—from mining critical minerals to developing military technology.
Since 2020, Congress has directed the State Department and USAID to spend at least $1.6 billion on projects to counter Chinese influence worldwide.
State and USAID funded about 470 projects—valued at nearly $1.2 billion—from FYs 2020-2023. But they haven't assessed the overall results of these projects. Doing so could help ensure funds go to projects that most effectively counter Chinese influence.
Our recommendations address this and more.
The U.S. flag and Chinese flag lie on top of a computer circuit board.
Highlights
What GAO Found
Since fiscal year 2020, the Department of State and the U.S. Agency for International Development (USAID) have used an interagency proposal process to allocate funding for countering Chinese influence projects. An interagency working group has overseen the process and drafted annual guidance for bureaus and posts around the world to submit proposals for funding. The guidance specifies that proposals should address specific lines of effort, which include issue areas such as economic coercion and military exports. However, the proposal process does not require bureaus and posts to seek input from key stakeholders with issue area or regional expertise. Providing documented input on proposals could help the working group better assess the feasibility of proposed projects and ensure approved proposals are designed to effectively address priorities for countering Chinese influence.
Examples of Fiscal Year 2024 Countering Chinese Influence Lines of Effort
State and USAID reported funding an estimated 470 projects valued at about $1.2 billion from fiscal years 2020 to 2023, but working group officials do not have readily available and reliable data on the types and status of these projects. In response to GAO’s request, officials stated they had to ask the bureaus and overseas posts managing the projects to compile data from various sources, resulting in incomplete data and errors. For example, of the estimated 470 projects, officials did not provide data on time frames for 129 and lines of effort for 38. Officials also lacked data on the specific projects funded from nearly a third of the approved proposals. As a result, working group officials lack critical information to track how funds were used and determine whether the funding ultimately supports the activities described in approved proposals.
The working group has not assessed the results of efforts to counter Chinese influence across the portfolio of projects. Although State and USAID began developing a framework to do so in 2023, the agencies were still in the early stages of developing it when a January 2025 executive order paused obligations of foreign assistance funds. As of March 2026, officials said that State is uncertain about whether it would resume developing the framework. Without a process for assessing results across the portfolio of funded projects, working group officials and other stakeholders lack evidence to determine the effectiveness of projects, which could help inform future funding decisions.
Why GAO Did This Study
The People’s Republic of China and the U.S. are engaged in economic and geopolitical competition spanning trade, security, and the development of advanced technology. Since fiscal year 2020, Congress has directed expenditure of at least $1.6 billion from specified appropriations accounts to counter Chinese influence. State and USAID administered this funding.
The Senate report accompanying legislation that became the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2024, includes a provision for GAO to review this funding. This report examines (1) State and USAID’s decision-making processes for the use of the funds, (2) the extent State and USAID maintained reliable data on the use of the funds, and (3) State and USAID’s efforts to assess results of projects countering Chinese influence.
GAO reviewed agency documents, interviewed agency officials, and analyzed State and USAID project data from fiscal years 2020-2023, which are the latest data available on funded projects.
Recommendations
GAO is making five recommendations, including that State require documented input from key participants on proposals for projects to counter Chinese influence, collect and periodically update complete data on funded projects, and develop a process for assessing results across the portfolio of funded projects. State concurred with the recommendations.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of State | The Secretary of State should ensure that the Office of China Coordination, in coordination with the Office of Foreign Assistance Oversight, releases the Countering PRC Influence Fund annual guidance earlier in the proposal process to provide agency units more time to develop proposals and subsequently obligate funds. (Recommendation 1) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of State | The Secretary of State should ensure that the Office of China Coordination, in coordination with the Office of Foreign Assistance Oversight, updates the annual guidance for the proposal process for the Countering PRC Influence Fund to require regional and functional bureaus to obtain and document input from relevant regional and issue area experts on all proposals related to their respective regions or areas. (Recommendation 2) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of State | The Secretary of State should ensure that the Office of China Coordination, in coordination with the Office of Foreign Assistance Oversight, updates the annual guidance for the proposal process for the Countering PRC Influence Fund to require Regional China Officers to review and document input on all proposals submitted by operating units within their region, including projects originating with or managed by functional bureaus. (Recommendation 3) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of State | The Secretary of State should ensure that the Office of China Coordination, in coordination with the Office of Foreign Assistance Oversight, consistently collects and periodically updates complete data on projects funded from the Countering PRC Influence Fund at a sufficient level of detail, such as the award number; the bureau, office, or post that has managed the project; targeted region and country; start and end dates; obligated funding; and the line of effort the project has supported. (Recommendation 4) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of State | The Secretary of State should ensure that the Office of China Coordination, in coordination with the Office of Foreign Assistance Oversight, develops a process for assessing the results of the portfolio of Countering PRC Influence Fund projects across lines of effort, appropriation accounts, and regions in countering Chinese influence. (Recommendation 5) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
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