China has fired back at the United States over criticism of a $267 million loan to The Bahamas for the construction of a new hospital, calling U.S. accusations “baseless and absurd” and denying that the funding is part of a geopolitical strategy to deepen influence in the Caribbean.
The Chinese Embassy in The Bahamas issued a strongly worded statement after U.S. Chargé d’Affaires Kim Furnish warned that China’s Caribbean investments disproportionately benefit elites, lead to incomplete projects, and saddle nations with unsustainable debt.
“Chinese investments in the Caribbean typically benefit elites, not the people, leaving countries with shoddy or incomplete projects and unsustainable debt to China, jeopardising their development and sovereignty,” said Furnish over the weekend. “The United States Embassy will continue to work with the Government of The Bahamas so they can make informed decisions about interactions with China.”
China issued a sharp response: “Is there a U.S. loan proposal at all on the table?” the Chinese Embassy asked, defending the US$195 million loan—73 percent of the total US$267 million project cost—for a new hospital in western New Providence. The funding is being provided through the Chinese Export-Import Bank under what Bahamian officials describe as “very favourable” terms.
The diplomatic row follows reports that the Bahamas turned down a competitive offer from the UK earlier this year. UK Export Finance reportedly offered financing with terms compatible with Western medical systems, but Bahamian officials said the project was already too advanced for the UK bid to be considered.
Director of Communications in the Office of the Prime Minister, Latrae Ramming, reiterated the government’s neutral stance, saying, “We do not intend to get between the geopolitical fight of China and the United States.” He also emphasized China’s long-standing role in The Bahamas’ development.
In response to U.S. concerns, the Chinese Embassy asserted that its loans come with no political strings and represent only a small share of The Bahamas’ external debt. “China is a trustworthy friend and reliable partner of The Bahamas,” the statement said, citing similar hospital projects in Trinidad and Tobago and Guyana.
The embassy also pushed back on Washington’s broader narrative of “debt-trap diplomacy,” arguing that Western-led financial institutions are more responsible for developing nations’ debt burdens. Calling on the U.S. to abandon its “outdated Cold War mentality,” China urged Washington to adopt a more inclusive approach to Caribbean development.
“The loan provided by China is long-term and very low-interest,” the statement emphasized, framing the hospital project as a purely cooperative development effort with no hidden agenda.
