As the U.S. reduces its foreign aid and moves towards abolishing USAID under President Trump's leadership, analysts predict this creates an opportunity for China to increase its presence in Southeast Asia. USAID previously funded significant health and humanitarian projects, but with the suspension of such programs, there is fear that China will fill this void, enhancing its influence particularly in countries reliant on U.S. aid like Indonesia and the Philippines. Notably, China has already begun to step in, providing funding for critical de-mining efforts in Cambodia.
"The suspension of health, education, and humanitarian programs—key pillars of US soft power—may create vacuums that China can fill," said Huang.
"This strategic retreat could strengthen Beijing's influence across the region, particularly in current US aid recipients like Indonesia, the Philippines, Myanmar, and Cambodia."
"In a little over three weeks since Trump’s inauguration, Washington has frozen nearly all foreign aid and moved to effectively abolish USAID, a longstanding source of soft power in the region."
"Beijing made news by stepping in with $4.4m to fund a de-mining project in Cambodia that had been left in the lurch by Washington."
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