The IssueEpisode 2 - Trump's foreign aid cuts hand China advantage in Southeast Asia

Donald Trump's decision to freeze and cut $60 billion in US foreign aid has significant implications for Southeast Asia, where China already dominates development spending with $53 billion compared to America's $9.9 billion and Australia's $7.2 billion. Western nations including the UK and EU are following America's lead in reducing aid budgets, potentially ceding further influence to Beijing in Australia's region. The Lowy Institute warns this retreat could undermine Western reliability as development partners while strengthening China's position, though Japan and South Korea are increasing their aid contributions.

The Issue was broadcast on Seven at Thursday 28 May 2026, 21:08.