China Expands Soft Power Influence Amid US Retreat from Global Commitments

The US is withdrawing from key international commitments, such as the WHO and Paris Agreement, under President Donald Trump. China has been advancing its position globally, positioning itself as a potential alternative to the Western superpower. With over 25% of global bilateral sovereign debt owed to China, the country's investments span continents, expanding its soft power influence.

In recent years, China has significantly reduced its lending to the developing world, yet it has emerged as the largest debt collector for many of these nations. According to a report by Australia's Lowy Institute, China's Belt and Road Initiative (BRI) lending has slowed down, and the country is now focusing on recovering outstanding debts. This shift has raised concerns about the potential impact on poverty reduction efforts and regional stability [1].

Deborah Brautigam, director of the China-Africa Research Initiative at the Johns Hopkins University School of Advanced International Studies, suggests that China's lending is driven more by commercial logic than political leverage. She notes that Chinese lenders are learning from past mistakes and are increasingly focusing on debt sustainability. As of 2023, over a quarter of the external debt in developing countries is owed to China, with these nations expected to pay at least $35 billion to Beijing this year alone [1].

Meanwhile, the United States has been withdrawing from key international commitments under President Donald Trump, including the WHO and the Paris Agreement. This withdrawal has allowed China to position itself as an alternative to the Western superpower, expanding its soft power influence through investments in infrastructure and debt collection. The US, however, has been shifting its AI export policy to counter China's growing influence.

The US has rescinded the "AI diffusion rule" and is now drafting its own approach, signaling a shift towards negotiating individual deals with countries. This new policy aims to grant access to advanced AI chips while ensuring robust US security standards are met. The first phase of a massive data center project, "Stargate UAE," is set to come online in Abu Dhabi in 2026. This project, involving Nvidia, Oracle, OpenAI, Cisco Systems, and SoftBank Group, marks a significant shift in US foreign policy regarding artificial intelligence [2].

The Stargate UAE project, which will house 100,000 of Nvidia's most advanced AI chips, is part of the UAE's ambition to diversify its economy beyond fossil fuels. This initiative is a strategic move by the US to deepen alliances and ensure that the global proliferation of advanced AI infrastructure occurs with US-designed technology, allowing for greater oversight and influence over security standards and usage [2].

References:
[1] https://www.ideastream.org/2025-05-28/china-is-now-the-biggest-debt-collector-in-the-developing-world-report-says
[2] https://www.nasdaq.com/articles/sovereign-ai-goes-global-us-extend-ai-influence-through-chip-deals