President Donald Trump’s sharp reductions in foreign aid and restructuring of agencies like USAID have ignited bipartisan concern that America is ceding global influence to China. Analysts argue retreating from development projects erodes decades of soft power while Beijing fills gaps in regions like Southeast Asia and Africa.
In Cambodia, China allocated $4.4 million for demining operations as Trump halted a $6.3 million U.S. grant to clear unexploded ordnances—a stark symbol of diverging priorities. Panama’s withdrawal from China’s Belt and Road Initiative after U.S. pressure underscores escalating competition for alliances.
These countries question if the U.S. remains a reliable partner,said Samantha Custer of AidData. China leverages doubts to frame itself as the stable alternative.
Key differences in foreign aid strategies:
- China focuses on infrastructure loans (e.g., Peru’s $1.3B Chancay port).
- The U.S. prioritizes grants for public health, agriculture, and governance (e.g., HIV programs in Africa).
Between 2000-2021, China spent $1.34 trillion on global projects. The U.S. disbursed $1.24 trillion, including military aid, but critics argue quantity matters less than consistent diplomacy. Despite Congress creating a counter-initiative in 2018, funding disputes and USAID’s uncertain future complicate responses.
National security adviser Mike Waltz defends reforms: Programs must align with strategic interests, like countering China.However, Senator Andy Kim (D-NJ) warns, We’re handing Beijing influence through self-inflicted retreats.
While U.S. military and economic dominance remains unchallenged, experts stress soft power vacuums matter. As one NGO lost 90% of U.S. funding, China promotes alliances without political conditions—a tactic resonating in developing nations.
