As the U.S. shutters its flagship foreign aid agency, China is stepping forward to offer critical support across developing nations. The shutdown of USAID, which spent $32.5 billion in 2024, has left a large vacuum in sectors like health, education, and infrastructure—gaps Beijing is now beginning to fill.

Beijing’s Swift Response

With ample time to prepare after President Trump’s announcement of USAID’s closure, China has begun expanding its development footprint. In Cambodia, Chinese-backed programs are targeting child healthcare, nutrition, sanitation, and landmine clearance. In Nepal, Beijing has already offered funding support, according to local media reports.

Strategic Realignment, Not Replacement

While analysts agree that China isn’t replicating the scale of U.S. foreign aid, its ability to quickly mobilize resources is giving it a strategic edge. China is focusing on regions close to home—South Asia, Southeast Asia, and Central Asia—where its interests in public health, agriculture, and infrastructure align with recipient countries’ urgent needs.

Experts say China’s centralized political structure enables fast deployment of aid in ways that support its broader economic and geopolitical goals. However, other donors from Northeast Asia and Europe may also step in to address remaining gaps.

A Shift in the Global Aid Landscape

The retraction of USAID marks a turning point in global development. While some worry about the long-term consequences, others see an opening for new, diverse aid partnerships. China’s emergence as a major development player signals a broader reconfiguration of how—and by whom—foreign assistance is delivered.