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 As U.S. pulls back, China is primed to expand its soft power

U.S. Retreat from Global Commitments

  • Under Trump, the U.S. exited major international agreements (e.g., WHO, Paris Agreement).
  • The U.S. accused WHO of bias and demanded disproportionate financial contributions.
  • It also withdrew funding from the UNFCCC and backed off climate finance commitments.

Relevance : GS 2(International Relations , Global Order)

China’s Expanding Financial Footprint

  • China pledged an additional $500 million to WHO over 5 years.
  • Its share in WHO’s assessed contributions rose from 6.5% (2015-16) to 15% (2024-25).
  • China now contributes the second-highest amount to WHO, trailing the U.S. (~20%).

Shift in Climate Financing Influence

  • China’s share in UNFCCC core funding is now 17%, second only to the U.S. (22%).
  • With U.S. retreating, China is poised to expand influence in climate governance.

Rise as a Global Creditor

  • China has become the worlds largest bilateral lender, holding 26% of global bilateral sovereign debt (up from ~1% in 2003).
  • In contrast, the U.S.’s share fell from 36% (1973) to 4% (2023).
  • Strategic investments via Belt and Road Initiative (BRI) and loans have entrenched China’s leverage in Asia, Africa, and Latin America.

Shifting Global Perceptions

  • 2024 Pew Research Center survey showed 60%+ respondents across 21 countries acknowledge China’s major economic influence.
  • The Democracy Perception Index (2024) found:
    • People in 76 out of 96 countries had a more favorable view of China than the U.S.
    • Only 20 countries viewed the U.S. more favorably.
  • Growing perception of China as a reliable global partner in contrast to the U.S.’s perceived unreliability.

Implications for Global Governance

  • China is filling leadership gaps in multilateral institutions left by the U.S.
  • Its strategy leverages soft power via financial aid, health diplomacy, climate action, and infrastructure.
  • The quote by China’s Ambassador — We have to adapt ourselves to multilateral organisations without the Americans” — highlights China’s pragmatic approach to leadership voids.

Conclusion

  • The U.S.’s inward turn has created vacuums in global governance.
  • China is not just catching up; it is actively recasting the global order through economic and diplomatic means.
  • This signals a rebalancing of global power, with long-term implications for international norms and alliances.

June 2025
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