live Trump says U.S.-Iran deal 'very possible' after latest talks - Middle East conflict on 7 May
Trump said the U.S. and Iran were making progress in peace talks, though direct negotiations remain premature. Meanwhile, Israel, reportedly, ...
The closure of the United States Agency for International Development (USAID) under the Trump administration has raised doubts over the future of the U.S influence in the Global South. The abrupt policy shift disrupts ongoing humanitarian and economic development efforts, particularly in South Asia, and creates an opportunity for China to expand its soft power in the region.
With USAID pulling back, China’s extensive financial engagement and investment in South Asian countries like Pakistan, Bangladesh, and Sri Lanka are likely to deepen, altering the geopolitical landscape.
USAID has played a role in South Asia, funding programs in health, education, and infrastructure. In Pakistan, USAID contributed over $8.5 billion between 2002 and 2020, funding projects in energy, agriculture, and governance. Its departure leaves a vacuum that China is prepared to fill through initiatives like the Belt and Road Initiative (BRI).
Under the BRI, China has already committed more than $62 billion to Pakistan through the China-Pakistan Economic Corridor (CPEC), with major investments in energy and transportation infrastructure. As USAID funding diminishes, Pakistan will likely rely even more on Chinese investment.
In Bangladesh, USAID provided over $7 billion in development assistance over the past five decades, focusing on health, climate resilience, and disaster response. However, China has made significant inroads in the country, particularly in infrastructure projects. Chinese companies have been involved in the construction of key projects such as the Padma Bridge rail link and the Dhaka - Chittagong railway expansion. As USAID reduces its role, Bangladesh has increasingly sought Chinese financing, including a $3.6 billion loan for the Payra coal-fired power plant, underscoring China's growing economic presence.
Sri Lanka has also been a significant recipient of USAID assistance, receiving over $2 billion in aid since 1956. However, Chinese investments, particularly in port development and real estate, have dramatically increased over the past decade. The construction of the Hambantota Port, funded through a $1.1 billion Chinese loan, resulted in Sri Lanka ceding a controlling stake to a Chinese company on a 99-year lease due to debt repayment struggles. As USAID’s role diminishes, Sri Lanka remains financially tied to China, increasing its dependence on Chinese-backed infrastructure projects.
China's financial engagement in South Asia has been extensive, with its total foreign direct investment (FDI) in the region reaching approximately $40 billion. In addition, China’s global foreign aid expenditures rose from $631 million in 2003 to over $3 billion by 2023. This financial clout allows Beijing to shape economic policies in recipient countries, often in ways that align with its strategic interests. The decline of USAID’s presence may further cement China’s influence, reducing Washington’s leverage in the region.
The withdrawal of USAID could shift South Asia’s geopolitical balance, giving China an even stronger foothold. China’s increasing role as a foreign aid provider means that countries like Pakistan, Bangladesh, and Sri Lanka may find themselves increasingly reliant on Chinese economic aid.
U.S. President Donald Trump said that Iran wanted to negotiate and make a deal in comments to reporters on Wednesday (6 May). But earlier, he warned Washington would ramp up attacks if no agreement was reached.
Argentinian authorities are reconstructing the journeys of Dutch citizens who presented with symptoms of deadly hantavirus after visiting Argentina and Chile as part of a luxury cruise trip, the country's Health Ministry said in a statement on Wednesday (6 May)
The United Arab Emirate said it was dealing with missile and drone attacks from Iran for the second day in a row on Tuesday (5 May), despite denials from authorities in Tehran who threatened a "crushing response" if the UAE retaliated.
The steps of the Metropolitan Museum of Art were transformed once again into the world's most prestigious runway for the 2026 Met Gala. This year’s theme, 'Costume Art,' invited guests to explore the intersection of nature, history, and the surreal under the official dress code 'Fashion Is Art'.
The 61st Venice Biennale has opened under grey skies and political tension, with disputes over Russia and Israel, resignations on the jury, and protests marking the start of one of the art world’s most high-profile events.
The United States is closely monitoring American passengers aboard a luxury cruise ship affected by a hantavirus outbreak, the U.S. Centers for Disease Control and Prevention (CDC) said on 6 May.
A federal judge in New York released a handwritten document described as a suicide note purportedly written by late financier and convicted sex offender Jeffrey Epstein, nearly seven years after his death in a Manhattan jail cell. The document was released late Wednesday (6 May).
Russia has restricted some mobile internet services ahead of Victory Day on Saturday (9 May), citing security concerns. The annual celebrations, marking victory over Nazi Germany in the Second World War, have been scaled back amid fears of attacks from Ukraine.
Ted Turner, the CNN founder who pioneered the 24-hour news cycle, has died aged 87, the network reported on Wednesday (6 May), citing a Turner Enterprises press release. He died surrounded by family.
The Secretary-General of the Iranian Red Crescent Society (IRCS), Meysam Afshar, said the organisation has documented alleged violations of international humanitarian law during the U.S.–Israel war on Iran and shared the findings with international bodies.
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