U.S. Embassy Charge d’Affaires Kimberly Furnish, center, visits local schools on Andros Island in the Bahamas in February 2025. Furnish cautioned the Bahamas from signing on to the Chinese Communist Party’s One Belt, One Road initiative, urging the Caribbean nation instead to diversify its economy and increase transparency. NAVAL UNDERSEA WARFARE CENTER
THE WATCH STAFF
A senior United States diplomat cautioned the Bahamas against exploring closer trade ties with the Chinese Communist Party (CCP) in January 2025 after the CCP ambassador to the Caribbean nation urged it to join Beijing’s One Belt, One Road (OBOR) initiative at a business roundtable. Kimberly Furnish, charge d’affaires at the U.S. embassy, indicated the CCP’s track record with OBOR has been detrimental to many countries that decided to participate. Without naming the CCP or OBOR at the Bahamas Business Outlook conference, Furnish noted that “other countries may offer investment with nefarious strings attached” and employ “methods” that are contrary to “international best practices,” according to The Tribune, a Bahamian newspaper. The Bahamas participation in the OBOR loan and investment program could “undermine the sovereignty and long-term stability” of both the Bahamas and the U.S., she said.
CCP Ambassador Yan Jiarong touted the benefits of OBOR and urged the Bahamas to join, noting that it was the only Caribbean country with diplomatic ties with Beijing to have declined to participate. Furnish, though, emphasized the strong ties between the Bahamas and the U.S. “Our shared values, geographic proximity and culture ties make us natural allies,” Furnish said in her presentation immediately after the CCP’s pitch. “U.S. investment comes with a commitment to transparency, to good governance and to mutual benefits for both of our countries.”
OBOR, also known as the Belt and Road initiative, has come under heavy criticism for its often-onerous loan conditions since its launch in 2013. Ghana, Malaysia, Pakistan and Zambia are among countries that have canceled or formally protested the results of infrastructure projects and other capital outlays in their countries. Closer to the Bahamas, Panama announced in February 2025 that it planned to leave OBOR. A 2023 Council on Foreign Relations report observed that OBOR has “stoked opposition” around the world when nations realized its conditions. “For some countries that take on large amounts of debt to fund infrastructure upgrades, [OBOR] money is seen as a potential poisoned chalice. The [CCP operates OBOR] with loans close to a market interest rate that it expects to be fully repaid. Some [OBOR] investments have involved opaque bidding processes and required the use of Chinese firms. As a result, contractors have inflated costs, leading to canceled projects and political backlash,” the report stated.
The CCP, unlike other major economic powers, also has a track record of punishing nations that don’t participate, the Tribune reported. The newspaper noted that many Bahamian exports to China are subject to exponentially higher tariffs.
A better approach would be to improve the transparency and ease of doing business while diversifying the Bahamian economy, Furnish said. “It’s essential to create a business environment that’s competitive, rules based, efficient and transparent,” she said. “We must reduce bureaucratic hurdles and streamline processes for investors here. This includes streamlining business registration and work permit applications, improving access to credit and enhancing property rights. These steps will make the Bahamas an even more attractive destination for investors from around the world, including the U.S.”
By promoting such best practices, including the adaptation of internationally accepted financial reporting and procurement practices, the Bahamas will reap new U.S. investments, Furnish said. “These measures will protect U.S. investments, which will give investors confidence that contributes to the overall business climate. It will draw more U.S. investment. It will make the Bahamas an even more attractive destination for all foreign investors,” she said.
A long-term effort to diversify the Bahamian economy away from an overreliance on tourism would also be beneficial, she said, urging the Bahamas to target sectors like renewable energy, financial services, infrastructure and digital assets. By doing so, Furnish said, the Bahamas could position itself as “leading the way in the Caribbean.”