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China rises in Southeast Asia as Western donors pull back

The Freeman

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July 22, 2025

China is set to expand its influence over Southeast Asia's development as the Trump administration and other Western donors slash aid, a study by an Australian think tank said Sunday.

The region is in an “uncertain moment", facing cuts in official development finance from the West as well as "especially punitive" US trade tariffs, the Sydney-based Lowy Institute said.

"Declining Western aid risks ceding a greater role to China, though other Asian donors will also gain in importance," it said.

Total official development finance to Southeast Asia -- including grants, low-rate loans and other loans -- grew "modestly" to US$29 billion in 2023, the annual report said.

But US President Donald Trump has since halted about US$60 billion in development assistance -- most of the United States’ overseas aid program.

Seven European countries -- including France and Germany -- and the European Union have announced US$17.2 billion in aid cuts to be implemented between 2025 and 2029, it said.

The Freeman

यह कहानी The Freeman के July 22, 2025 संस्करण से ली गई है।

हजारों चुनिंदा प्रीमियम कहानियों और 10,000 से अधिक पत्रिकाओं और समाचार पत्रों तक पहुंचने के लिए मैगज़्टर गोल्ड की सदस्यता लें।

क्या आप पहले से ही ग्राहक हैं?

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