China rushes to replace the USAID Asian projects focused by Trump

The United States has canceled two Cambodia assistance projects at the end of February, one to encourage children’s literacy and another to improve nutrition and development for children under the age of five. A week later, the Chinese aid agency announced the financing of the programs to achieve almost identical goals.

“Children are the future of the country and the nation,” the Chinese ambassador in Cambodia Wang Wenbin said at the event, alongside the country’s Minister of Health and a UNICEF official. “We have to take care of the healthy growth of children together.”

Although China’s announcement did not include figures in dollars, Chinese money essentially finances the same types of development initiatives and objectives that ending in the context of the dismantling of the USAID by the Trump administration, according to two people who know of American projects, which were not authorized to speak publicly.

The two focused on “inclusive education” and “most vulnerable children”, according to press releases and supply documents. They both provided school supplies, offering hand washing materials and improving results for “vulnerable” families and households, newborns and disabled children, according to people.

The price for American programs – $ 40 million – was small compared to the $ 27.7 billion in savings that the Trump administration said this week that it saved by focusing thousands of aid contracts. But for Cambodia, whose national GDP is roughly equivalent to this Vermont, it was a large sum, and replacing lost foreign funds was a priority.

The State Department, which oversees the USAID and could now absorb the agency entirely, said in a statement that the United States was funding aid programs that make Americans richer and safer. At the same time, he said that the United States had made “significant progress” by investing in the development of Cambodia in the past 30 years, “in closely” partnership “with the government.

“Despite the changes in the American approach to foreign assistance, we hope to see our relationship with Cambodia mature in a productive way while we make America safer, stronger and more prosperous,” added the ministry in the press release.

The contracts were terminated on February 26 after President Donald Trump and Councilor Elon Musk launched a radical overhaul of American foreign aid, which included the dismantling of the American agency for international development.

Although this is just an example, it seems to confirm the fears expressed by democratic legislators and republican legislators, assistance defenders and former US officials: by reducing foreign aid, Trump gives China an easy opportunity to fill the void and benefit from a gentle power in countries where world opponents are competing for influence.

This is particularly urgent in Cambodia, where the United States has spent around 1 billion dollars since the 1990s. Washington has long waged a difficult battle with China in Southeast Asia, and Cambodia in particular. The Biden administration has raised concerns about Chinese military influence at the country’s naval base in the past four years.

But more recently, the United States has moved to to strenghten Defense is linked to the government in Phnom Penh, who granted access to the American warship to Ream for the first time at the end of last year.

“Diplomatic gift”

“It is a diplomatic gift” for China, said Charles Kenny, a principal researcher at the Center for Global Development. “In all the countries where there is a serious reduction in the USAID, if they put a small sum of money in a health and education project and to say:” Look, we accelerate “, it seems to be a bit of an advertising gift for them. And I’m sure they are smart enough to take it. “

Since the Trump administration has moved to close USAID, end most of its foreign aid contracts and put themselves on leave or place on most of its employees, American legislators, development experts and national security professionals have highlighted the geopolitical risks of reducing American foreign aid in the developing world.

Many of these legislators and experts have warned that China could move in, gaining influence on developing countries after having courted officials in Africa, Asia and South America for years, with tens of billions of loans focused mainly on infrastructure through the Belt and Road initiative.

And this is certainly the case. China has already announced funding for a Cambodian casualture initiative that was abandoned, then restored by the United States in mid-March, also Beijing announcement An early childhood development project in Rwanda, where USAID recently reduced contracts. And Chinese officials have would have Offered to compensate for the financing of gaps in Nepal, nestled between India and China.

Will Parks, Cambodia representative for the United Nations Fund for children, said in a statement that the organization and Cambodia had signed a partnership with China in 2024, based on a 2022 proposal. He was launched earlier this month and “complete” the funding of other nations, said Parks.

“Cambodia has made huge progress for children in the past decade,” he said. “But new reductions in aid budgets could compromise these hard -won achievements.”

The government of Cambodia was explicit on drawing a link.

“The Cambodian government is working with many partners, and we never count on a partner exclusively,” said government spokesperson Pen Bona by SMS in response to questions. “So, if a partner withdraws support, we seek to find another partner to replace him.”

China “will continue to provide assistance to economic and social development” in Cambodia “as part of South-South cooperation,” the Chinese Foreign Ministry said in a statement.

“China’s help policy remains coherent and clear,” continued the Ministry of Foreign Affairs. “The principles of the non-interference of China, not joining any political rope, and not giving empty promises remain unchanged.”

During a closed hearing audience on Capitol Hill this month, Pete Marocco, appointed by Trump, who directed the assault on the USAID, was questioned about Cambodia projects and the calendar of the rapid announcement of China, according to a person familiar with the session. Marocco has rejected the concerns about China increasing its influence, said this person.

Marocco did not respond to a request for comments.

While Trump’s team said that the canceled projects brought no advantage to the Americans, Diana Putman, who retired as an acting assistant assistant from the USAID for Africa, said the billions of aid abroad of the agency contributed to giving us the ambassadors a crucial advantage.

“Their lever effect and their ability to make a difference in terms of foreign policy in this country are safeguarded by the money they bring, and in the world South, this money is mainly money from the USAID,” said Putman.

This story was initially presented on Fortune.com

(Tagstotranslate) Bloomberg

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