The US and China are trying to make a deal that would allow the US to provide billions of dollars in aid to countries that do not receive it from Washington.
This would mean that any country that gets its hands on the funds would have to do the same for the US.
In a joint statement released on Tuesday, the US and the Philippines said they had agreed to a new mechanism for providing financial assistance to countries and regions that do receive US assistance.
The statement did not say when the new mechanism would be in place.
It would allow countries to access up to $1bn in US aid for infrastructure projects, infrastructure investment, education, health and other purposes.
However, the United States has insisted that countries do not get access to the funds unless they are ready to accept it.
China is also keen to make the agreement permanent.
It has long argued that the US has failed to fulfil its commitments.
“The US has not fulfilled its promises to China on infrastructure development and development assistance to China,” Chinese Foreign Minister Wang Yi told reporters in Beijing on Tuesday.
“China is determined to implement this new mechanism.”
The US is also expected to issue an additional $2.6bn in aid for low-income countries and countries with a history of corruption, according to the statement.
However China’s own President Xi Jinping has said the country would prefer to see the US “provide aid in a timely fashion”, and is likely to veto the aid proposal.
It comes amid increasing pressure from Washington for Beijing to do more to support developing countries.