Democrats and some Republicans in Congress are warning the Trump administration against shutting down the United States Agency for International Development (USAID). They argue that this move would allow China to fill the economic and geopolitical void left behind. However, this concern is overstated and reflects a misunderstanding of China’s true motives in distributing foreign aid.
Under Xi Jinping’s leadership, the Chinese Communist Party has deftly expanded China’s economic and geopolitical reach across the globe, primarily through initiatives like the Belt and Road Initiative (BRI), which invests in vital infrastructure projects. This expansion, while impressive, raises crucial concerns as China’s foreign aid is strategically designed to achieve three main goals: securing essential natural resources (particularly oil and gas), gaining access to critical locations such as ports, and creating new markets for its goods and services. It is no wonder that the majority of China’s foreign aid is directed toward energy and transportation projects that serve these strategic interests.
Yet Elon Musk’s Department of Government Efficiency (DOGE) team has revealed that USAID had been misallocating millions of dollars in areas that hold little interest for China. For instance, $2.5 million was spent on electric vehicles in Vietnam, $1.5 million on a Pro-LGBT group in Serbia, and $70,000 on a DEI musical in Ireland. This misuse of funds has essentially turned USAID into a slush fund for Democrats and nongovernment organizations (NGOs) to finance leftist ideological programs. These programs neither advance America’s interests nor counter China’s influence. It’s unlikely that China would step in if USAID stops funding these programs, as they do not align with China’s foreign aid goals. Furthermore, the Communist Party, in fact, is known for suppressing feminist and LGBT groups.
There is no doubt that China is keen to take advantage of U.S. withdrawal in certain strategic areas. For example, officials in the Cook Islands, situated in the Indo-Pacific, have voiced concerns that a withdrawal of USAID could open the door for China. Beijing is actively looking to enhance its presence on crucial islands in the Pacific.
However, it is essential to recognize that China’s desire to fill this void may not always materialize. Many countries continue to prefer partnering with the U.S. over China, largely due to the nature of USAID’s assistance, which is primarily provided in the form of grants. This type of aid is highly valued by recipient countries because it doesn’t require repayment. In contrast, China rarely offers aid without strings attached; it typically insists on some form of repayment. Loans from Chinese banks and investments made by Chinese firms abroad are often categorized by Beijing as foreign aid, making them less attractive to nations seeking genuine support. […]
— Read More: thefederalist.com
