American aid discounts expand Chinese influence

The Trump administration’s decision to freeze and reduce external aid weakens national security, which creates a vacuum that China quickly fills strategic lending and infrastructure. China strengthens this effect to confront American interests, enhance authoritarian regimes, and expand its military scope.

China has planted close relations with political elites and citizens in the global south, and secured influence through direct financial incentives. While the reputation of China has decreased in Western countries, it remains a preferred partner in development in many regions. It enhances relations by financing projects directly in the domestic areas of leaders, which enhances political loyalty. Studies indicate that China’s infrastructure projects are likely to be allocated to the birth areas of African presidents, which enhances China’s strategic relations.

In addition to economic relations, development projects in China directly affect the foreign policy decisions of the host countries. Research has linked Chinese aid to transformations in the United Nations voting patterns, where democratic countries are more likely to influence Beijing more than autocraticism – probably because Ottawas are already in line with China.

In some cases, the promised infrastructure projects were persuaded to cut ties with Taiwan. For example, Costa Rica received Chinese funding for the National Stadium just months after ending its diplomatic recognition in Taiwan.

China’s financial assistance extends beyond diplomacy; It also provides access to critical infrastructure that can serve military purposes. By 2024, Chinese entities control risks in 129 outlets around the world, raising concerns about their potential use by the Chinese army. This effect extends to defense relations, as is evident from Chinese military ties in Africa. Between 2008 and 2016, the Popular Liberation Army (PLA) conducted 294 links across 40 African countries, including work visits, marine port calls and military exercises aimed at strengthening defense relations.

Unlike Western aid, which often supports civil society and NGOs, Chinese foreign assistance is primarily funded by state -based infrastructure projects. This approach provides very clear political “victories” that enhance their home position.

In many cases, governments are first seeking help from American and Western institutions, such as the World Bank and IMF, only to reject fears about profitability-which allows China to intervene and gain a long-term effect.

A prominent example is the port of Hambantotta in Sri Lanka. The Sri Lankan government contacted the United States and India first to finance, citing positive feasibility studies from Canadian and Danish analysts. After refusing, the import bank in China funded the project, and a Chinese company obtained the construction contract. This pattern is repeated all over the world, as China fills the emptiness that Western institutions left.

With the contract of US foreign aid programs, China is entering countries like Nepal, and the Cook Islands and Colombia remember that China has already provided financial assistance to compensate for the decline in American aid. If this trend continues, China’s ability to form global policy will increase.

The United States must reassess the external aid strategy. While the promotion of democracy is still decisive, infrastructure investment with visual economic advantages will be a key to facing the increasing impact of China. Aid programs that give priority to high visual projects can help enhance good intentions and economic stability in developing countries.

Moreover, projects funded by the United States must put a high level of work and environmental sustainability-which indicates that democratic rule and economic development can be side by side.

Instead of relying on discourse, the United States must focus on providing the benefits of improving people’s lives directly in the global south. By align its development assistance with the priorities of the recipient countries, the United States can enhance its influence and protect its strategic interests against China’s growing domination.

Anita R Kelogg Assistant Professor of National Resources Studies at Eisenhower College at National Defense University. She is also a “Kelogg’s Global Politics” host. The views expressed in this article are the author of the author and do not reflect the official policy, the position of the National Defense University, the Ministry of Defense or the US government.