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Friday, Jul 10, 2026

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China's Belt and Road Initiative Set to Address Gap Created by USAID Funding Halt

With the US ceasing its foreign aid expenditures via USAID, China's Belt and Road Initiative may take the opportunity to back infrastructure projects in developing countries.
The recent decision by the United States to freeze funds designated for the United States Agency for International Development (USAID) has resulted in a deficit in global development assistance, particularly impacting infrastructure initiatives.

Experts indicate that China’s Belt and Road Initiative (BRI) could potentially fill this gap.

The BRI, which offers low-interest loans for infrastructure endeavors such as highways, ports, and power facilities, has been instrumental for China in promoting its foreign policy and obtaining crucial resources in developing countries.

The freeze on USAID funding, announced by President Donald Trump, affects nations that depend on the 64-year-old agency for developmental support, many of which are also recipients of Chinese investments through the BRI.

Sharif Naubakhar, a public policy professor at the Hong Kong University of Science and Technology, remarked that while BRI funding is not classified as aid, it prioritizes critical infrastructure, energy, and clean water, making it attractive to countries seeking alternatives to US backing.

China’s growing involvement in global development aligns with its broader strategy to forge alliances that contrast with US national interests.

Professor Christopher Barrett from Cornell University noted that China stands to gain from the USAID funding freeze as it continues to establish partnerships in areas where the US has historically been active.

Nations facing economic challenges, such as Bangladesh, are likely to look to China for investment and support, as indicated in a recent report by the Council on Foreign Relations.

These countries may see China as a feasible alternative for infrastructure funding following a decline in US assistance.

As global dynamics evolve, the competition for influence in developing countries may escalate, with China positioning itself as a significant actor in the void left by the USAID funding freeze.
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