The Future of Gutting Aid US Cedes Soft Power Game to China

The Future of Gutting Aid US Cedes Soft Power Game to China

In recent years, the United States has frozen nearly all foreign aid under President Donald Trump's administration. This sudden shift has significant implications for countries such as Cambodia, which has been forced to suspend mine removal efforts until alternative funding sources are found. Similarly, the Cook Islands' prime minister is planning to sign a cooperation deal with Beijing, marking a turning point in the US's decades-long effort to exercise soft power through its attractiveness.

As a result of this shift, experts warn that China may become the dominant player in the developing world, leveraging its aid to gain influence and shape international priorities. The US Agency for International Development (USAID) workforce is currently on leave, and traditional soft power tools are being replaced by Trump's hard power approach.

Michael Schiffer, a former USAID assistant administrator for Asia, cautions that China could fill the gap in areas such as public health and policing, leaving the US to react belatedly. We'll be sitting on the sidelines, and then in a couple of years, we'll have a conversation about how we're surprised that the PRC has positioned itself as the partner of choice in Latin America, Africa, and Asia, he said.

One key difference between Chinese aid and Western nations' is its opacity. China provides most of its aid through loans rather than grants, making it difficult to track and account for. Experts doubt there will be a significant increase in Chinese aid, but China can still gain by simply being present – after all, you can't partner with someone who's not there.

The US's aid freeze has already had real-world consequences, including the shutdown of schools in Uganda and flood relief shelters under threat in South Sudan. Aid groups are sounding the alarm about the devastating effects of this shift, which may leave countries struggling to access essential services and supplies.

As the world adjusts to this new reality, experts are pondering the future of gutting aid and soft power. Will China take up the mantle?

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.