The U.S. House Committee on Foreign Affairs convened on February 26, 2025, to evaluate the impact of recent aid reductions in the East Asia and Pacific (EAP) region and the resulting opportunities for China. The meeting highlighted concerns about the implications of halted American assistance and the potential shift in regional influence.

Key discussions centered on the noticeable increase in Chinese engagement in countries previously supported by U.S. aid. Witnesses pointed to specific examples, such as the potential collapse of the Millennium Challenge Corporation (MCC) compact with Nepal, which involves $500 million in U.S. funding. This situation has allowed China to strengthen its political and economic ties in Nepal, a trend that has been ongoing for years.

Additionally, the freeze on cyber tools provided by the International Republican Institute (IRI) has raised alarms. These tools were crucial for dissidents in various countries, including China, to communicate securely. With U.S. support diminished, China has reportedly approached partners in countries like Burma, Bangladesh, Nepal, and Sri Lanka, offering to fill the void left by American funding.

The meeting also addressed broader regional sentiments, noting a decline in confidence in U.S. engagement across Southeast Asia over the past five years. Polling data indicated that both the previous and current administrations have contributed to a perception that the U.S. may not be a reliable partner. This decline in trust coincides with China's increasing influence in the region, raising concerns that the U.S. is losing its foothold at a critical time.

In conclusion, the discussions underscored the urgent need for the U.S. to reassess its foreign aid strategy in the EAP region to counteract the growing influence of China and restore confidence among its regional partners. The committee's findings suggest that without a strategic response, the U.S. risks further diminishing its role in a region of significant geopolitical importance.