International infrastructure investments in the 21st century: a comparative analysis of the US and China's strategies

Abstract

In the 21st century, international infrastructure investment has become a key pillar of global economic governance, driving economic growth and international trade. However, there remains a significant global funding gap. Against this backdrop, the United States and China, as the world’s two largest economies, have adopted different investment strategies. This study, based on Hegemonic Stability Theory and Power Transition Theory, analyzes the roles of the U.S. and China in international infrastructure investment. The study finds that the U.S. follows a “market-oriented financing + multilateral cooperation” model, relying on private capital and global alliances, whereas China adopts a “state-led” approach, financing projects through policy banks and implementing them via state-owned enterprises. This difference stems from their distinct global positions: as the incumbent hegemon, the U.S. seeks to maintain its dominance by setting international rules, while China aims to expand its influence through large-scale investment, reshaping the global infrastructure landscape. Their competition not only shapes bilateral relations but also reshapes the global landscape of infrastructure investment.