Elon Musk hacked the USAID agency, and now China is ready to replace it

In Nepal, Chinese officials, according to the Annapurna Express, have offered the government development funding to replace USAID assistance. At the same time, in the strategically important Cook Islands in the Pacific Ocean, it is expected that the USAID's withdrawal will create an opportunity for China to expand its influence. In Colombia, which received about $385 million in funding from USAID in 2024, NGOs report that the Chinese government is interested in taking on this role.

These early moves underscore concerns that the U.S. withdrawal will create a vacuum that China will quickly fill as part of its global competition with Washington.

"China is already reaching out to partners," said Francisco Bencosme, former head of USAID's China policy during the Biden administration. "They will fill in the void in places like Cambodia and Nepal, and those are just the places we know about."

Republican and Democratic analysts warn that a USAID shutdown could weaken the US ability to counter China's global ambitions. Michael Sobolik, a China expert at the Hudson Institute and former aide to Senator Ted Cruz (R-Texas), emphasized USAID's role in providing developing countries with alternatives to Chinese investment, especially in infrastructure and telecommunications. He also noted that USAID has promoted the development of independent media in Africa and Southeast Asia, where Chinese state media such as Xinhua are gaining influence.

"Sure, USAID was doing some highly questionable stuff that’s worthy of review. But don’t throw the baby out with the bathwater. Beijing is hoping we do exactly that," Sobolik said.

Democrats on the House Committee on the Chinese Communist Party criticized the Trump administration's decision as a strategic mistake that will strengthen Beijing's position. The three-page memorandum, prepared by Democrats led by Congressman Raja Krishnamoorthy (D-Illinois), emphasizes the need to strengthen USAID's work to counter China's investment and influence.

"When the Chinese Communist Party is aggressively investing abroad, rerouting supply chains, and buying authoritarian favor through elite capture, the United States must double down on USAID’s work, not stifle it," the memorandum says.

However, Republicans on the same committee refrain from defending USAID. In response to questions from NatSec Daily, the committee said it had "full confidence in Secretary Marco Rubio's ability to effectively address important human rights and development issues," but did not comment on USAID's role.

The USAID cuts come at a time when China is actively expanding its One Belt, One Road initiative and strengthening its diplomatic and economic presence in developing countries. Critics of the Trump administration's decision warn that ceding these territories to China could have long-term implications for US foreign policy and global stability.

The suspension of USAID programs has a negative effect on the Ukrainian tech sector as well. After all, USAID played a key role in developing Diia.City, a legal and tax environment that has attracted more than 1,300 IT companies since 2022, as well as supporting more than 265 startups and technology companies to participate in 29 global technology delegations in Europe and America. In addition, USAID has partnered with Ukrainian universities and cybersecurity companies to develop the cybersecurity sector.

USAID also supported the digitalization of public services and transparent procurement systems through the Diia and Prozorro platforms. Through the Cyber Diagnostics program, small and medium-sized enterprises could assess the security of their digital infrastructures for free. In addition, the ReskillUA program provided 30,000 Ukrainians with access to online courses and certifications in key areas such as reconstruction, recovery, business, and technology.