The Shifting Sands of Aid: USAID's Retreat and China's Advance in Southeast Asia
April 3, 2025, 5:06 am
In the wake of a devastating earthquake in Myanmar, the absence of USAID has become a glaring void. The United States, once a beacon of hope in humanitarian crises, is now a shadow of its former self. The landscape of foreign aid is shifting, and the implications are profound.
On March 28, 2025, Myanmar was rocked by a powerful earthquake. Lives were lost, buildings crumbled, and the nation was thrown into chaos. President Trump promised aid, but the response was sluggish. A team was dispatched days later, a far cry from the swift action expected from a superpower. Meanwhile, China leaped into action, sending rescue teams and pledging over $13.8 million in aid. This stark contrast highlights a troubling trend: the retreat of American influence in Southeast Asia.
The gutting of USAID has left a gaping hole in the U.S. response to international disasters. Once a robust agency, USAID has seen its funding slashed by 83%. Nearly the entire foreign aid apparatus has been dismantled. This retreat signals a significant shift in the balance of power. The U.S. has surrendered a critical tool of soft power, allowing China to fill the void.
USAID has long been a strategic asset for the U.S., particularly in Southeast Asia. The scars of the Vietnam War and the secret bombings of Laos and Cambodia still linger in the region's collective memory. USAID's efforts to remediate these historical wounds were pivotal in fostering reconciliation. Programs aimed at cleaning up Agent Orange served as trust-building mechanisms. They were more than just aid; they were gestures of goodwill.
Yet, even before the earthquake, skepticism about U.S. leadership was growing. A study from the ISEAS-Yusof Ishak Institute revealed rising reservations among Southeast Asians regarding American engagement. The U.S. has contributed over $1.5 billion in development assistance over the past decade, primarily to Myanmar and Thailand. But with the anticipated cuts of $259 million in humanitarian aid to Myanmar in 2025, the future looks bleak.
The implications of USAID's withdrawal are dire. Healthcare systems, governance programs, and human rights organizations in Myanmar are already on the brink. Now, as the country grapples with the aftermath of the earthquake and ongoing civil war, the absence of American support is palpable. The international community is watching closely, and the perception of the U.S. is at stake.
China's rapid response to the earthquake raises questions about its intentions. Will it exploit the U.S.'s retreat to expand its influence? Just days after the U.S. suspended funding for de-mining efforts in Cambodia, China announced a $4.4 million grant for similar initiatives. This pattern suggests a calculated strategy to fill the gaps left by the U.S. However, China's approach is different. Its focus is primarily on infrastructure projects rather than humanitarian assistance. This distinction matters. While China may provide immediate aid, it lacks the long-term commitment to human rights and democracy that USAID historically championed.
Expecting multilateral organizations and large foundations to compensate for USAID's absence is a tall order. The cuts to foreign aid contracts have hampered the ability of disaster-response teams, including those from the United Nations, to deliver essential supplies. U.S. allies in the Indo-Pacific, like South Korea and Japan, are stepping up, but they too face economic challenges. Their contributions, while valuable, cannot replace the extensive support that USAID once provided.
The U.S. has promised an "America First" approach to foreign policy, but this strategy has come at a cost. By dismantling USAID, the U.S. has weakened its soft power and opened the door for China to assert its influence. The ramifications extend beyond Myanmar. The absence of American leadership will shape how Southeast Asians view the U.S. for years to come.
In the aftermath of the earthquake, the need for a robust response is critical. Lives hang in the balance, and the international community must act. The U.S. must reconsider its approach to foreign aid. The retreat from humanitarian commitments is not just a policy failure; it is a moral one. The people of Myanmar deserve support, and the U.S. must not turn its back.
As the dust settles in Myanmar, the world watches. The shifting sands of aid are revealing a new landscape, one where American influence is waning, and China's presence is growing. The question remains: will the U.S. reclaim its role as a leader in humanitarian efforts, or will it continue to cede ground to its rivals? The answer will shape the future of Southeast Asia and the global order for generations to come.
On March 28, 2025, Myanmar was rocked by a powerful earthquake. Lives were lost, buildings crumbled, and the nation was thrown into chaos. President Trump promised aid, but the response was sluggish. A team was dispatched days later, a far cry from the swift action expected from a superpower. Meanwhile, China leaped into action, sending rescue teams and pledging over $13.8 million in aid. This stark contrast highlights a troubling trend: the retreat of American influence in Southeast Asia.
The gutting of USAID has left a gaping hole in the U.S. response to international disasters. Once a robust agency, USAID has seen its funding slashed by 83%. Nearly the entire foreign aid apparatus has been dismantled. This retreat signals a significant shift in the balance of power. The U.S. has surrendered a critical tool of soft power, allowing China to fill the void.
USAID has long been a strategic asset for the U.S., particularly in Southeast Asia. The scars of the Vietnam War and the secret bombings of Laos and Cambodia still linger in the region's collective memory. USAID's efforts to remediate these historical wounds were pivotal in fostering reconciliation. Programs aimed at cleaning up Agent Orange served as trust-building mechanisms. They were more than just aid; they were gestures of goodwill.
Yet, even before the earthquake, skepticism about U.S. leadership was growing. A study from the ISEAS-Yusof Ishak Institute revealed rising reservations among Southeast Asians regarding American engagement. The U.S. has contributed over $1.5 billion in development assistance over the past decade, primarily to Myanmar and Thailand. But with the anticipated cuts of $259 million in humanitarian aid to Myanmar in 2025, the future looks bleak.
The implications of USAID's withdrawal are dire. Healthcare systems, governance programs, and human rights organizations in Myanmar are already on the brink. Now, as the country grapples with the aftermath of the earthquake and ongoing civil war, the absence of American support is palpable. The international community is watching closely, and the perception of the U.S. is at stake.
China's rapid response to the earthquake raises questions about its intentions. Will it exploit the U.S.'s retreat to expand its influence? Just days after the U.S. suspended funding for de-mining efforts in Cambodia, China announced a $4.4 million grant for similar initiatives. This pattern suggests a calculated strategy to fill the gaps left by the U.S. However, China's approach is different. Its focus is primarily on infrastructure projects rather than humanitarian assistance. This distinction matters. While China may provide immediate aid, it lacks the long-term commitment to human rights and democracy that USAID historically championed.
Expecting multilateral organizations and large foundations to compensate for USAID's absence is a tall order. The cuts to foreign aid contracts have hampered the ability of disaster-response teams, including those from the United Nations, to deliver essential supplies. U.S. allies in the Indo-Pacific, like South Korea and Japan, are stepping up, but they too face economic challenges. Their contributions, while valuable, cannot replace the extensive support that USAID once provided.
The U.S. has promised an "America First" approach to foreign policy, but this strategy has come at a cost. By dismantling USAID, the U.S. has weakened its soft power and opened the door for China to assert its influence. The ramifications extend beyond Myanmar. The absence of American leadership will shape how Southeast Asians view the U.S. for years to come.
In the aftermath of the earthquake, the need for a robust response is critical. Lives hang in the balance, and the international community must act. The U.S. must reconsider its approach to foreign aid. The retreat from humanitarian commitments is not just a policy failure; it is a moral one. The people of Myanmar deserve support, and the U.S. must not turn its back.
As the dust settles in Myanmar, the world watches. The shifting sands of aid are revealing a new landscape, one where American influence is waning, and China's presence is growing. The question remains: will the U.S. reclaim its role as a leader in humanitarian efforts, or will it continue to cede ground to its rivals? The answer will shape the future of Southeast Asia and the global order for generations to come.