USAid Shutdown Sparks Concerns Over China's Rising Influence

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The recent 90-day suspension of USAid funding, which constitutes 40% of global foreign aid, has raised alarms regarding a potential power shift towards China, analysts warn. The shutdown has resulted in chaos within humanitarian operations worldwide, leaving aid workers locked out and critical support halted, according to reports.

Former U.S. President Donald Trump’s decision to merge USAid into the State Department aims to re-align global spending with U.S. priorities. However, experts like Prof. Huang Yanzhong from the Council on Foreign Relations argue that this move inadvertently provides China an opportunity to bolster its soft power amid its own economic struggles.

While Beijing's China International Development Cooperation Agency (China Aid) operates differently, focusing on loans and infrastructure projects, the agency is well-positioned to fill gaps left by USAid. Some in the field, such as Tom Wang from People of Asia for Climate Solutions, caution against a simplistic view of China's ascendance, noting that while it may lack USAid's experience, it possesses strengths in technology and renewable energy.

Concerns also persist about reduced bargaining power for recipient nations and potential shifts towards more authoritarian aid practices from China, which critics argue could undermine good governance in developing regions.

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