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How the USAID Shutdown Could Benefit China’s Global Influence

How the USAID Shutdown Could Benefit China’s Global Influence

February 7, 2025 By Peter Leave a Comment

The potential shutdown of the USAID could have significant implications for China's expanding global influence. While the Trump administration's move to close down USAID has sparked debate, experts believe it could pave the way for China to increase its presence on the world stage.

Impact on China's Global Investments

China has been heavily investing in countries worldwide through initiatives like the Belt and Road Initiative. While USAID focuses on aid, China's investments are primarily driven by economic interests. With USAID out of the picture, China could have more room to expand its influence through strategic investments.

Opportunities for China's Soft Power

Experts suggest that the closure of USAID could create opportunities for China to exert soft power through aid and investments. While the exact figures of China's foreign aid spending are not fully disclosed, estimates indicate a substantial amount being allocated for global projects.

Geopolitical Implications

The intensifying rivalry between the US and China has raised concerns about the impact of USAID's shutdown. As China continues to expand its economic and political influence, the absence of USAID could further tilt the balance in China's favor.

China's Belt and Road Initiative

China's Belt and Road Initiative has been a key driver of its global influence. By investing in infrastructure projects worldwide, China has been able to strengthen its economic ties and expand its reach. The initiative has faced criticism for potential debt traps, but China remains committed to its expansion.

US-China Trade Relations

The trade tensions between the US and China have further highlighted the importance of global influence. As the two countries impose tariffs on each other's goods, the strategic implications of USAID's shutdown become more pronounced.

Future Outlook

While the closure of USAID may benefit China in the short term, the long-term implications remain uncertain. Both US and Chinese policymakers are closely monitoring the situation to gauge the strategic shifts in global influence.

—————————————————————————————————————————————
By: nsheidlower@businessinsider.com (Noah Sheidlower,Huileng Tan)
Title: How the USAID Shutdown Could Benefit China’s Global Influence
Sourced From: www.businessinsider.com/usaid-shutdown-china-trump-musk-investment-belt-and-road-initiative-2025-2
Published Date: Fri, 07 Feb 2025 07:33:49 +0000

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