Trump is ceding ground to China with suspension of USAID

People protest against US President Donald Trump's decision to shut down the United States Agency for International Development (USAID) in Washington, DC, on February 5, 2025. [AFP]

Since returning to the White House for his second term, President Donald Trump has shown the world that his administration is less concerned about global interests. This shift in focus has led to the shutdown of the United States Agency for International Development (USAID), the world’s largest aid donor.

While Trump doesn’t owe the world any explanation for halting USAIDS’s international operations, the suspension of this agency is a double-edged sword.

On January 26, Secretary of State Marco Rubio stated, “Every dollar we spend, every program we fund, and every policy we pursue must be justified by three simple questions: Does it make America safer? Does it make America stronger? Does it make America more prosperous?”

Trump’s administration says USAID has not been serving the interests of Americans. However, if we consider the dynamics of geopolitics, the agency was established to promote America’s interests worldwide. Its closure could have significant ramifications for Washington’s foreign policy.

For decades, US diplomacy has relied on foreign aid, and by ending such programs, the United States risks losing a vital diplomatic tool. This leaves Washington vulnerable, especially at a time when many Americans, along with their Western allies, are concerned about China’s rising influence in the Global South.

While the US and its Western allies have long focused on governance, anti-corruption efforts, HIV/AIDS, and military training, these initiatives often lack the tangible, immediate impact of infrastructure projects, which are critical for economic growth. In contrast, China’s large-scale infrastructure projects have provided visible and lasting results, addressing urgent needs.

USAID was established 60 years ago to further US interests through foreign aid. Since its creation by President John F. Kennedy in 1961, USAID has worked to promote economic growth, stability, and the national security, political, and economic interests of the United States. For decades, USAID has been America’s signature for internationalism.

Foreign assistance has been a key diplomatic tool for Washington, helping maintain its global dominance. By cutting foreign aid, President Trump is giving China the opportunity to reassess its approach and take a more prominent role on the global stage.

Trump’s decision to halt USAID operations has had significant consequences for developing nations, particularly in Africa. Critics argue that USAID misused American taxpayer money, but its contributions to global development have been invaluable. The agency has supported health, education, and infrastructure projects in regions where other nations have failed to act. Its suspension will not only harm developing countries but also US pharmaceutical companies that rely on USAID contracts.

By eliminating USAID, Trump has weakened America’s global leadership and influence, while simultaneously opening the door for China to expand its reach, particularly in developing nations. It has become clear that America can no longer be relied upon to provide consistent support, allowing China’s influence to grow beyond the Global South. This creates a perfect opportunity for China to enhance its soft power and strengthen its position in global leadership.

The writer is a journalist and communication consultant