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China invites countries to fund programs instead of USAID

China invites countries to fund programs instead of USAID Photo: China invites countries to fund programs instead of USAID (Getty Images)

China is offering its assistance to countries affected by the Trump administration’s decision to halt the US Agency for International Development (USAID), stepping in to fund programs that lost American support, Politico reports.

According to the report, Chinese officials have already informed Nepal’s government — a strategically significant country for Beijing, located on the southern slopes of the Himalayas between India and China — that China is ready to replace USAID programs with its own development projects.

Meanwhile, a delegation from the Cook Islands, a Pacific archipelago, led by Prime Minister Mark Brown, will visit China this week to sign an agreement on deepening trade and economic cooperation, including increased Chinese investment in the nation’s infrastructure.

In Colombia, non-governmental organizations report that China is showing interest in stepping in to replace USAID programs that were frozen. Last year, Colombia received approximately $385 million from USAID.

China’s strategic push

These moves indicate China’s intent to capitalize on the situation and quickly expand its influence in regions crucial to its global ambitions, potentially displacing the United States from key strategic areas.

In response, Democratic lawmakers in the US House of Representatives have developed a strategy to warn the Trump administration about the risk of China strengthening its global position due to the suspension of US foreign aid. However, House Republicans have not taken steps to defend USAID or push for the restoration of assistance.

USAID suspension

On January 21, US President Donald Trump announced a 90-day suspension of all foreign aid programs to review their alignment with his administration’s foreign policy goals.

A few days later, an order was issued for the termination of existing foreign aid programs and a freeze on new funding. USAID operations in Ukraine were also put on hold, suspending ongoing projects and financial support.

Meanwhile, a group of former USAID officials condemned the Trump administration's actions and urged Congress to take swift action to protect the agency’s statutory role.

For more details, see RBC-Ukraine’s report: “USAID on hold: Why billions in US aid to Ukraine have been frozen and what it means.”