China has stepped in to fund Cambodian aid projects, following the U.S.’s decision to terminate similar programs under USAID. The move by China’s aid agency effectively replaces the axed U.S. initiatives.
What Happened: The U.S. canceled two aid projects in Cambodia at the end of February. These projects, one focusing on child literacy and the other on nutrition and development for children under five, were part of a broader effort by the Trump administration to dismantle USAID. The U.S. programs, which cost $40 million, may now be absorbed entirely by the State Department. A week after the U.S.’s withdrawal, China’s aid agency revealed funding for programs with almost identical goals, reported Fortune.
Although the Chinese announcement did not disclose a specific funding amount, the initiatives align with the development goals of the terminated U.S. projects.
Despite changes in the U.S. approach to foreign assistance, the State Department expressed hope for a productive maturation of its relationship with Cambodia. However, China’s decision to fund Cambodian projects comes amid concerns that it may expand its influence over developing nations.
Why It Matters: A recent trend shows China stepping in to fund projects in areas where USAID has curtailed contracts. China’s announcement of funding for a Cambodian de-mining initiative and an early childhood development project in Rwanda are recent examples. Chinese officials have also reportedly proposed filling funding gaps in Nepal, which lies between India and China.
These moves by China come in the wake of a controversial decision by the Trump administration to dismantle USAID, a move that has been criticized by figures such as Bill Gates.
Giving his views on the USAID shutdown, Tai Wei Lim, a professor at Japan’s Soka University, “there may be opportunities for other aid givers like China to exert soft power influence through dispensing aid.” Meanwhile, Jeremy Chan, a senior analyst at Eurasia Group, told Business Insider, “The chaotic end of USAID will undoubtedly rebound to China’s benefit, even if it is unlikely to change Beijing’s international development strategy in the short term.”
However, as per a commentary on Brookings by Yun Sun, a non-resident fellow at John L. Thornton China Center, China’s foreign aid has consistently been much smaller than that of the U.S. She also stated that due to its sluggish economy and uncertainty about the Trump administration, China is not prioritizing foreign aid for now. “The withdrawal of U.S. foreign assistance will leave China with bigger weight in a smaller space, but it doesn't mean China can step in to fill the void,” opined Sun.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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