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How China Benefits from the Dismantling of USAID? How can Digital Health and Telemedicine fill the Gap? Anna E. Schmaus-Klughammer, LLB(hons) President

Authors:
  • Klughammer GmbH / One World Medical Network e.V. / Deggendorf Institute of Technology

Abstract

The dismantling of USAID creates a global development vacuum, benefiting China, which can expand its influence through the Belt and Road Initiative (BRI). While China focuses on infrastructure and financial aid, digital health and telemedicine offer an alternative, particularly in healthcare access, medical training, and public health monitoring. Klughammer’s cost-effective solutions, like Case.io and Telko.live, could help sustain healthcare services where USAID funding has been lost. However, funding constraints, regulatory barriers, and competition from China pose challenges. Success will depend on scalable deployment and strategic partnerships.
How China Benefits from the Dismantling of USAID?
The dissolution of the U.S. Agency for International Development (USAID) presents an
opportunity for China to expand its global influence. For over six decades, USAID has been a
key player in providing humanitarian aid, supporting development, and funding infrastructure
projects in developing countries. With this support now absent, a vacuum emerges that
China can fill through its Belt and Road Initiative (BRI). 1
The BRI offers low-interest loans to countries in need for the construction of highways, ports,
and power plants. Many of the nations previously receiving USAID assistance may now turn
to China for support in their infrastructure projects. Experts highlight that China stands to
"win" from USAID's closure, as it seeks access to key resources abroad and builds alliances
that are not in the interest of the United States. 2
One example is Bangladesh, which, facing economic difficulties, is likely among the first
countries to seek assistance from China following the loss of USAID support. 3
However, while China may benefit, Europe is more likely to face challenges rather than gain
from USAID’s dissolution. In particular, Eastern European countries that relied on USAID for
democratic reforms, infrastructure development, and energy security projects are now left
without critical support. The sudden cessation of U.S. aid has left pro-democracy groups,
independent media, civil society initiatives, and local governments scrambling to find
alternative funding sources. 4
This reduction in U.S. assistance could create a vacuum that other global powers, such as
Russia and China, might seek to fill, potentially increasing their influence in the region. For
instance, in Moldova, U.S. funds have been crucial in balancing the media landscape against
Russian-funded outlets. The loss of USAID support raises concerns about the country's
vulnerability to external interference. 5
In summary, China benefits from USAID's dissolution by expanding its investments and
influence in developing countries, while Europeespecially its eastern nationsfaces
challenges in maintaining support for democratic institutions and development projects,
which could lead to increased influence from rival powers.
1 https://apnews.com/article/usaid-hiv-humanitarian-assistance-disease-spending-
20f9cb969ffb6773e57886e34bf69165
2 https://apnews.com/article/trump-usaid-brazil-colombia-peru-amazon-venezuela-
a0e9bb720165da269bf472b0f9cb50d4
3 https://nypost.com/2025/02/05/opinion/transgender-recognition-in-bangladesh-kosovo-guatemala-
how-one-usaid-employee-shows-whats-wrong-with-the-embattled-agency/?utm_source=chatgpt.com
4 https://www.theguardian.com/us-news/live/2025/feb/04/donald-trump-tariffs-live-blog-news-updates-
canada-trudeau-mexico-china?utm_source=chatgpt.com
5 https://www.reuters.com/world/asia-pacific/indonesia-health-programmes-with-usaid-hold-minister-
says-2025-02-06/?utm_source=chatgpt.com
Here are USAID projects that China might be interested in or could potentially replace with its
own initiatives:
Colombia: USAID has provided humanitarian aid to support Venezuelan refugees in
Colombia. China has been expanding its influence in Latin America through
infrastructure investments and financial aid, making this an area of potential interest.
Peru: USAID has implemented programs offering alternatives to cocaine production,
assisting farmers in transitioning to legal and sustainable agricultural practices. China
has strong trade ties with Peru, particularly in mining and agriculture, making this an
area where it could step in.
Africa (PEPFAR Program): USAID has provided $6.5 billion in humanitarian
assistance to combat HIV/AIDS, benefiting over 25 million people. China has been
increasing its medical aid and health infrastructure investments in Africa and could
take over aspects of these programs to strengthen its geopolitical influence.
Indonesia: USAID has invested $800 million since 2020 in health initiatives, including
efforts to combat HIV and tuberculosis. China has growing economic and strategic
ties with Indonesia, making health and development programs a key area for
increased Chinese involvement. (
Jordan: The USAID Jordan Tourism Development Project supported economic
growth through technical assistance and training in tourism. Given China’s interest in
Middle Eastern economies as part of its Belt and Road Initiative, it may look to
expand investments in Jordan’s tourism and infrastructure sector.
These projects align with China’s strategic interests in trade, infrastructure, and geopolitical
influence, making them potential targets for Chinese investment and expansion following
USAID’s dissolution
Can digital health and telemedicine fill the gap?
Digital health and telemedicine can partially fill the gap left by USAID’s dissolution, especially
in healthcare access, medical training, and public health monitoring. Platforms
like Case.io and Tel ko .l iv e can provide remote consultations, second opinions, and online
medical education, reducing reliance on physical infrastructure. However, challenges such
as funding, digital access, and competition from China’s large-scale infrastructure
investments may limit their impact. Successful implementation would require strategic
partnerships and scalable deployment in affected regions.
One World Medical Network e.V.
Ulrichsberger Strasse 17 * 94469 Deggendorf * Germany * info@owmn.org * www.owmn.org
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