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How the U.S. foreign-aid pause strengthens China's global influence

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  • The U.S. foreign-aid pause has inadvertently allowed China to expand its influence in key regions, particularly in Africa, Asia, and Latin America, where Beijing’s Belt and Road Initiative is thriving.
  • Reducing foreign aid has made it harder for the U.S. to monitor and counter China’s economic, military, and technological expansion, especially in critical global institutions.
  • A more balanced and strategic approach to U.S. foreign aid is necessary to offer an alternative to China’s growing power and to maintain U.S. geopolitical influence in developing countries.

[WORLD] In recent years, the United States has been reevaluating its foreign aid policy, and one of the most significant shifts in this policy has been the halt in foreign aid under certain administrations. While the debate on foreign aid often centers around its effectiveness in fostering diplomacy, development, and global stability, there is a growing concern that these changes are impacting one of the most critical areas of international scrutiny: the U.S.'s ability to monitor and counter China's growing global influence.

The strategic pause on foreign aid, particularly under the Trump administration, has created a new environment in which U.S. global influence is weakened, specifically in regions where China is aggressively expanding its presence. This article delves into the key implications of this shift in policy and how it makes the scrutiny of China's economic, military, and geopolitical influence even more challenging for the United States.

The Strategic Importance of U.S. Foreign Aid

Foreign aid has long been a tool of American diplomacy, used not only to support economic development in partner nations but also to bolster U.S. geopolitical interests. By providing assistance to countries in need, the U.S. has been able to foster strategic partnerships, ensure access to key markets, and promote stability in key regions. However, this assistance is not solely altruistic. It is intricately tied to national security objectives, including containing the rise of rival powers like China.

China has been on a global expansion spree, using its Belt and Road Initiative (BRI) to build infrastructure in developing countries, many of which were once recipients of U.S. foreign aid. By offering loans, investments, and economic opportunities, China has been able to cultivate long-term relationships, securing influence in key regions across Africa, Asia, and even Latin America. In many cases, these countries have become increasingly dependent on Chinese investment, making them more susceptible to Beijing’s political and economic pressures.

In this context, U.S. foreign aid has served as a counterbalance, providing an alternative to China’s increasingly dominant presence. The pause or reduction of this aid under certain U.S. administrations has inadvertently allowed China to fill the gap and assert its influence more freely. This is especially concerning when the U.S. seeks to scrutinize and counter China’s actions in international organizations, trade negotiations, and security matters.

The Impact of Foreign-Aid Reduction on Scrutiny of China

With foreign aid paused or reduced, the U.S. has faced greater difficulty in monitoring China’s influence in critical regions. Countries receiving foreign aid from the U.S. often offer transparency and cooperation in matters related to trade, security, and governance, thus providing the U.S. with valuable information about China’s activities. When aid is reduced, these nations may no longer feel as compelled to share intelligence or align with U.S. foreign policy priorities.

The reduction in aid also limits the U.S.'s ability to offer a compelling alternative to China's economic model. Many of the countries most susceptible to China's growing power are not necessarily ideologically aligned with Beijing. However, they may have few options when U.S. foreign aid is halted, leaving them more vulnerable to Chinese overtures. As a result, China’s growing economic footprint becomes even harder for the U.S. to scrutinize, monitor, and ultimately counter.

China’s growing footprint also extends to institutions that play a central role in global governance, including the World Health Organization (WHO), the United Nations (UN), and the World Trade Organization (WTO). China’s increasing influence in these organizations presents a direct challenge to U.S. interests, particularly when the U.S. is unable to leverage foreign aid as a tool to maintain influence in these institutions.

The Consequences for U.S.-China Relations

The cessation of foreign aid has long-term implications for U.S.-China relations, as it impacts not only the ability to scrutinize China's actions but also the broader strategic competition between the two powers. China has invested heavily in diplomacy and economic influence, especially in countries that were traditionally aligned with U.S. interests. By reducing foreign aid to these nations, the U.S. risks losing its leverage and influence, allowing China to gain a stronger foothold in areas like Africa, Southeast Asia, and Latin America.

A specific example of this shift can be seen in Africa, where China has been a major investor in infrastructure projects, lending billions of dollars through its BRI. Countries like Kenya, Angola, and Ethiopia have benefited from Chinese loans, creating economic ties that make it more difficult for the U.S. to engage in these regions. The pause in U.S. foreign aid only exacerbates the challenge, making it harder for the U.S. to compete with China's growing influence.

Furthermore, China’s growing technological presence and its involvement in global supply chains further complicate U.S. efforts to scrutinize Beijing's actions. China's Belt and Road Initiative and the expansion of its 5G networks have allowed it to exercise significant control over global infrastructure. Without the leverage that foreign aid provides, the U.S. finds it more difficult to persuade partner countries to limit their reliance on Chinese technology and infrastructure, which could have national security implications for the U.S. and its allies.

The Need for a Balanced Approach to Foreign Aid

The key to addressing these challenges is not to cut foreign aid completely but to ensure it is strategically targeted to achieve specific U.S. goals. A more balanced approach to foreign aid, where assistance is not only aimed at alleviating poverty but also at maintaining geopolitical influence, is necessary to combat China’s rising power.

One potential solution is to establish more public-private partnerships and encourage U.S. businesses to invest in the same regions that China is targeting. This could provide an alternative to Chinese investment while still fostering economic development. Additionally, the U.S. should leverage its allies, particularly in Europe and Asia, to create a united front against China’s growing global influence. Through coordinated diplomacy and foreign aid, the U.S. can offer a competitive alternative to China’s growing economic footprint.

Another area for improvement is in the transparency and accountability of foreign aid programs. By ensuring that U.S. aid is used effectively and that recipients are held to high standards of governance, the U.S. can strengthen its position in countries where China is seeking to expand its influence. This would not only help ensure that the aid is used for its intended purposes but also reinforce the U.S.’s reputation as a partner in development, making it harder for China to present itself as the only viable option for countries in need.

The suspension of U.S. foreign aid has far-reaching consequences, particularly in the context of U.S.-China relations. With China’s increasing global presence, the ability to scrutinize and counter its influence is more critical than ever. The halt in foreign aid makes this task significantly harder, leaving China with more opportunities to expand its influence in developing countries and in global institutions.

To regain its competitive edge, the U.S. must rethink its foreign aid strategy. A more comprehensive approach that combines economic assistance, diplomatic engagement, and private sector investment is necessary to counter China’s growing influence. Only through a balanced and strategic foreign aid policy can the U.S. hope to effectively monitor and challenge China’s expanding power in the 21st century.


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