WASHINGTON – A comprehensive report released today by Ranking Member Jeanne Shaheen and Democratic members of the Senate Foreign Relations Committee details how the first six months of President Donald Trump’s administration have severely compromised the United States’ ability to effectively compete with the People’s Republic of China (PRC).
The report, commissioned by Senator Jeanne Shaheen (D-NH), emphasizes the urgent need for a coherent, whole-of-government U.S. strategy to counter growing Chinese influence, warning that the Administration’s failure to leverage foreign aid, diplomatic tools, and international partnerships has created significant openings for China.
This release comes at a crucial time as the Senate considers a rescissions package and budget requests that would further undermine America’s diplomatic capacity, particularly following significant layoffs at the State Department and the near closure of the U.S. Agency for International Development (USAID).
Titled “The Price of Retreat: America Cedes Global Leadership to China,” the 91-page report is based on extensive travels to Asia, Africa, Latin America, and Europe, as well as interviews with foreign officials, U.S. companies, and international NGOs.
The findings detail how the Trump Administration has collectively undermined America’s ability to deliver foreign assistance and maintain development programs, along with cuts to independent media initiatives and counter-disinformation tools.
Shaheen expressed grave concerns, stating, “This report paints a troubling picture.” She articulated that while President Trump adopts a retreating stance globally—criticizing allies, slashing diplomatic programs, and favoring adversaries—China is actively expanding its influence, reshaping the global order to its benefit.
Shaheen highlighted the risk posed by the Administration’s actions, asserting that the retreat from global leadership will impose severe costs on the American people.
“China articulates a vision for a future where America lags behind,” she added, “and the Administration’s lack of a strategic response is alarming.”
Among the report’s alarming highlights are cuts that President Trump has made to core elements of America’s global influence.
The report details how the Administration’s trade policies have not only instigated chaos and increased costs domestically but also complicated allies’ ability to enhance defense spending.
Furthermore, it highlights significant cuts to USAID, undermining the effectiveness of foreign assistance programming.
The attempt to shutter the U.S. Agency for Global Media (USAGM) is particularly concerning, as China continues to enhance its global propaganda reach.
Dismantling counter-disinformation capacities at the State Department is another unfavorable outcome, which severely limits the U.S. and its allies’ abilities to counter adversarial propaganda.
The report points to numerous other backsteps, including the suspension of Millennium Challenge Corporation (MCC) projects globally and the freeze on critical U.S. funding initiatives aimed at countering PRC influence.
The assessment further expresses worries over measures that harm the U.S. reputation and appeal, such as diminished funding for scientific research and attacks on international students, compounded by the elimination of U.S. led people-to-people programs.
The findings suggest a retreat from multilateral engagement as the Administration proposes cuts to U.S. contributions in international organizations like the United Nations, raising concerns over America’s international standing.
Key recommendations from the report aim at addressing these concerning trends.
Recommendations include rebuilding America’s foreign assistance focusing on humanitarian and development programs to restore U.S. influence and presence globally.
It also advises requiring a National Intelligence Estimate to analyze the impact of U.S. foreign assistance reductions on national security interests, specifically how these changes afford advantages to China.
Another vital recommendation is the reinvigoration of counter disinformation capabilities paired with robust support for independent global media, which have been vital in fostering democracy and transparency.
The report highlights the need to restore U.S. leadership within multilateral organizations, preserving contributions to international bodies and expanding American personnel in crucial organizations to enhance strategic initiatives.
Moreover, it emphasizes strengthening trade resilience by rejecting policies that adversely affect the economic and defense supply chains and calls for new strategies to ensure critical mineral supply chains are secure amidst growing competition.
Recommendations also include legislation aimed at enhancing oversight over U.S. diplomatic closures and protecting the MCC programs, which offer transparent alternatives to China’s Belt and Road Initiative.
The report advocates investing in programs that foster global talent and expand educational exchanges, ensuring that America remains a destination for innovation and education in the face of increasing competition from China.
Moreover, it articulates the need to fortify the Australia-United Kingdom-United States (AUKUS) partnership, advocating additional collaborations within the Indo-Pacific to enhance deterrent capabilities among allies.
Lastly, it calls for measures to stabilize the U.S. diplomatic workforce amid increasing global competition, stating that Congress must enhance oversight on executive branch reductions that weaken diplomatic efforts.
The report outlines a critical juncture for U.S. foreign policy, emphasizing that urgent strategic measures are essential to prevent further erosion of American influence on the global stage amid rising competition from China.
The full report is available HERE.
An abridged version of the report is available HERE.
image source from：foreign
