How USAID Cuts Hand Big Win to China

 


The Trump administration's recent actions to scale back USAID, the largest global provider of U.S. foreign assistance, have created an opportunity that China is likely to seize, according to analysts.

Shortly after taking office last month, President Trump signed an executive order halting foreign aid for 90 days, with exemptions for emergency food aid and military assistance to Israel and Egypt. The United States is the largest humanitarian aid provider globally, accounting for more than 40 percent of international aid last year, as reported by the United Nations. About two-thirds of this aid is managed by the U.S. Agency for International Development (USAID).

Now, the administration is working to merge USAID into the State Department, reducing its workforce from around 10,000 employees to fewer than 300. This move, led by the newly formed Department of Government Efficiency (DOGE), has sparked criticism from aid organizations and lawmakers, who warn that halting these programs could risk lives and increase China's global influence.

China has already stepped up its aid efforts, particularly in Cambodia, a nation still dealing with the legacy of landmines from the Khmer Rouge regime and subsequent conflicts. Shortly after the freeze on USAID, the Cambodian Mine Action Centre announced a $4.4 million grant from China to fund landmine clearance over the course of one year in seven provinces.

Meanwhile, in Nepal, officials from the main opposition Communist Party of Nepal reported that Chinese diplomats have reassured them of Beijing's readiness to provide assistance in areas like humanitarian aid, health, and education, according to the Nepali news outlet Annapurna Express.

China has long criticized U.S. foreign aid, accusing Washington of using it for self-interested purposes. A report from the Chinese Academy of International Trade and Economic Cooperation (CAITEC) in April 2024 described U.S. foreign aid as "selfish, arrogant, hypocritical, and ugly," claiming it harms global peace by interfering in other countries' internal affairs for American benefit.

CAITEC pointed out that, under President Joe Biden, USAID Administrator Samantha Power became the first to be appointed as a permanent member of the White House National Security Council. The academy argued that this move underscored the role of aid in advancing U.S. national security and suggested that U.S. aid now serves as a tool in the broader competition between great powers.

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Elon Musk, head of the Department of Government Efficiency (DOGE), remarked during a February 3 session on X Spaces: "It became apparent that it's not an apple with a worm in it. What we have is just a ball of worms. You've got to basically get rid of the whole thing. It's beyond repair."

A State Department spokesperson told *Newsweek*: "We are reviewing all foreign assistance funds to ensure they align with American interests. National security will remain a top priority. This review is part of aligning our work with the America First agenda, and the results will be communicated transparently."

J. Brian Atwood, who led USAID under the Clinton administration, told *Newsweek*: "China has been critical of USAID programs for years... Their aim was to weaken support for USAID both in the U.S. and abroad. They’ll be thrilled that the Trump administration is dismantling the agency, and they’ll quickly move to replace the U.S. in many countries. This is a major self-inflicted wound for the United States."

Senator Roger Wicker, a Republican from Mississippi, said: "I’ve long believed that USAID is our main tool to combat China’s Belt and Road Initiative, which seeks to expand Chinese influence across the globe, including in Africa and South America."

Francisco Bencosme, the former USAID China policy lead under the Biden administration, was quoted in *Politico* saying: "China is already reaching out to its partners. They’ll fill the void in places like Cambodia and Nepal, and those are just the places we know about."

The future of USAID within the State Department remains uncertain, and it is unclear what will happen to the thousands of staff members now placed on administrative leave.

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