COMMENTARY:
Twelve years ago, China established its “Belt and Road Initiative (BRI),” often called the “New Silk Road Initiative.” This huge, global program was originally established to better link East Asia to Europe. In subsequent years, the program was established in other regions of the world, such as the South Pacific, Latin America, and Africa. Through the BRI, China works with countries to develop and invest in their infrastructure. Projects have included roads, ports, power plants, telecommunication systems, and airports.
The BRI has been successful for China in four major ways. The first is the ability of China to enhance its image around the world as a superpower that cares deeply about countries that have infrastructure needs. Secondly, by assisting countries with their infrastructure, China has the opportunity to strengthen its trade relationships. Third, Chinese companies are usually involved with or directing the infrastructure projects. And finally, through the program, China obligates countries to cooperation and loyalty, especially if they have difficulties paying off the loans or investment.
Since its establishment, the BRI has invested approximately US$1.175 trillion in 149 programs and international organizations. Projects have included: a new industrial zone for Egypt on the Gulf of Suez, and a new electric train system for the capital Cairo; the Magampura Mahinda Rajapaksa Port in Sri Lanka, the first high-speed rail in Indonesia; a new seaport for Peru; and six hydroelectric power plants in Bolivia, two of which are already operational. The BRI has invested in 53 countries in Africa, 29 in Europe (many of these are not infrastructure projects, but signed cooperative agreements), 22 in Latin America and the Caribbean, 12 in the South Pacific, and 10 in Southeast Asia. A BRI record was established in 2024 with US$70.7 billion in construction projects and another US$51 billion in investments.
While the BRI continues to expand, along with China’s influence throughout the world, the U.S., in contrast, is retracting its global outreach efforts. The U.S. Agency for International Development (USAID) has been scuttled. Established in 1961 by the Kennedy Administration, USAID was meant as a counterweight to the Soviet Union’s influence, and to spread what is referred to as U.S. “soft power” throughout the world. USAID does this by working with countries to establish educational programs, healthcare systems, programs that foster economic development, and the building of renewable power systems.
USAID also assists countries with disaster relief efforts, such as famines in Africa, to mitigating the conflicts in Yemen and Afghanistan. According to its publications, in 2023 USAID disbursed $79.1 billion in aid throughout the world, 27 percent for economic development projects, 22.3 percent for health, 21.7 percent for humanitarian purposes. By helping countries thrive, the U.S. has helped prevent wars and disasters. By funding programs for foreign immunization programs, USAID has saved lives abroad and prevented diseases from entering the U.S. Since establishment, USAID has been a major tool in assisting the U.S. in spreading democracy throughout the world.
Through its Department of Government Efficiency, the Trump Administration has deemed USAID to be unnecessary, and has decreased most of its funding and put its supervision under the Secretary of State’s office. Programs are not being funded, diseases not being addressed, projects that would increase the quality of life in other countries are not being constructed, and U.S. soft power has been drastically reduced.
In the midst of what is happening at USAID is an opportunistic China that sees the door being swung open – wide open for China to walk through for it to capitalize on its BRI. Coupled with the U.S.’s tariff war with most of the world, the rise of the BRI and the fall of USAID is the most welcome development for China since it founded the BRI. International goodwill can take years to develop and to see projects come to fruition. By shuttering USAID, the U.S. is throwing decades of goodwill out the window in a short period of time. We are signaling to the world that we are not a reliable partner that can be trusted in the long run to improve lives and help countries achieve democratic governments.
By being willing to invest in projects in other countries, China can build goodwill and spread its diplomacy throughout the world, while developing new trade opportunities in lucrative regions. In today’s highly competitive and volatile world, these opportunities are as valuable as gold.
Jerry Pacheco is the president of the Border Industrial Association. Jerry Pacheco's opinions are his own and do not necessarily reflect the viewpoints of KRWG Public Media or NMSU.