Donald Trump’s shutdown of USAid has already had disastrous effects on humanitarian aid and development programmes around the world, but it has also ceded ground to the US’s chief rival, China, analysts have said.
The result of the sudden 90-day suspension of USAid funding – which accounts for 40% of global foreign aid – has been chaos: employees locked out of offices, humanitarian shipments left to rot, and lifesaving assistance stopped. Around the world, development programmes previously assisted by the USAid are panicking, warning of disastrous risks of escalating famine, death and disease.
“[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,” said professor Huang Yanzhong, senior fellow for global health at the Council on Foreign Relations.
“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.”
More than one analyst described the shuttering of USAid as a “self-inflicted wound”.
Global dynamics have been dominated by the ongoing US-China competition and a key battlefront is in the development sector as Washington and its allies vie against Beijing for influence in the global south.
In 2018, the Chinese government created the standalone China International Development Cooperation Agency, or China Aid, to streamline China’s spending, including its foreign investment programme, the belt and road initiative (BRI). Beijing doesn’t disclose foreign aid budgets but a study by William & Mary’s Global Research Institute found China lent $1.34tn to developing nations between 2000 and 2021, mostly through the BRI. The new agency would “further the effectiveness of aid as a key foreign policy instrument”, according to a government press release at the time.
Comment: Perhaps this will fuel the growth of both US and China.
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