Trump's US aid freeze opens door for China's influence: Report

By Al Mayadeen English
Source: Agencies
Today 15:38

One of the countries Among those who have most enthusiastically embraced BRI is impoverished Laos, which has borrowed heavily for infrastructure projects.

Listen

People walk by the Ministry of Foreign Affairs office, in Beijing, on Wednesday, Feb. 5, 2025 (AP)

In a recent report, Reuters highlighted a significant shift in regional influence, with US aid freezes opening the door for China to step in and fill the void.

After the Trump administration froze donations to Cambodia's largest demining organization in January, the group announced new funding from China. The Cambodian Mine Action Centre (CMAC), which works to clear unexploded munitions left by past US wars in Southeast Asia, has seen Beijing double its contributions over the last three years.

On February 5, CMAC revealed a pledge of $4.4 million from China, surpassing the $2 million donation from the US last year. Heng Ratana, the leader of CMAC, noted that China recognizes the importance of such support in "building up people-to-people networks" and generating economic returns.

Dive deeper

Beijing, as per Lowy Institute in Sydney which studies Asia-Pacific geopolitics, has been increasing its investments in neighboring countries, focusing on building "soft power" through goodwill exchanges and diplomatic engagement.

The freeze of US aid will "hamper humanitarian work" and human rights efforts in the region, analysts warn, especially as China steps in. Joshua Kurlantzick, an analyst at the Council on Foreign Relations, claimed, "The overall shift will be toward China and away from the US as the US squanders its soft power."

He further alleged that the combination of China providing more assistance and Washington retreating from funding civil society programs "crushes democratic potential in virtually every country in the region."

Among those who have most enthusiastically embraced BRI is Laos, which has borrowed heavily for infrastructure projects but now faces a public debt burden deemed "unsustainable" by the World Bank.

The US funding freeze, as per the report, will especially hurt groups that Beijing considers hostile. For example, in Myanmar, the Chin Human Rights Organization has laid off 30% of its workforce due to the freeze, as reported by Reuters.