The suspension of USAid funding has created a significant disruption in humanitarian aid and development programs across the globe, accounting for a staggering 40% of global foreign aid. This 90-day shutdown has left employees locked out of offices, humanitarian shipments deteriorating, and crucial lifesaving assistance halted. In the midst of this chaos, China has seized the opportunity to increase its influence by stepping in to provide funding for programs previously supported by USAid.
China Aid, a government agency established in 2018 to streamline China's foreign investment through its Belt and Road Initiative, operates with a distinct focus on loans and highly visible infrastructure projects rather than local partnerships. Although the Chinese foreign aid budget remains undisclosed, studies indicate that China lent $1.34 trillion to developing nations between 2000 and 2021. This strategic maneuvering has allowed China to gain ground, particularly in the Pacific region, where the US and its allies have been working to counter China's growing influence.
“They don’t have to significantly increase funding of the foreign aid levels in order to replace the US as leader in this field,” – Huang
The suspension of USAid has been described by many analysts as a "self-inflicted wound," allowing China to advance its authoritarian world order. George Ingram, a senior fellow at the Brookings Institution's center for sustainable development, expressed concern over China's potential corrupting influence on the countries it engages with. He emphasized the importance of the US and its allies in promoting liberal democracies and economies, contrasting China's authoritarian approach.
“The US and Europe, Canada, Australia, Japan, we have a strong interest in living in a world of liberal democracies and economies,” – George Ingram
“China, like Russia, is trying to advance an authoritarian world. The total opposite of what our interests are.” – George Ingram
Professor Huang Yanzhong from the Council on Foreign Relations highlighted how the temporary cessation of USAid funding provides China with an ideal opportunity to expand its influence at a critical juncture when China's economic growth faces challenges.
“The US is handing on a silver platter to China the perfect opportunity to expand its influence, at a time when China’s economy is not doing very well,” – Professor Huang Yanzhong
“What Trump is doing is basically providing China a perfect opportunity to rethink, to renew soft power projects, and get back on track to transglobal leadership.” – Professor Huang Yanzhong
The impact of USAid's suspension has been disproportionately felt by development programs worldwide. Many workers within these initiatives hope for a restoration of funding at the end of the 90-day period. Meanwhile, China continues to build its narrative of altruism through loan-driven projects that enhance its soft power quickly.
“And … its narrative about international development, about how altruistic China is, becomes more convincing. So that also helps boost China’s soft power quickly.” – Huang