Trump's soft-power retreat scrambles U.S.-China race

6-8 minutes 7/17/2025

President Trump has set a radical new course in the U.S.-China rivalry, ceding ground to Beijing in pursuit of a far narrower vision of America's role in the world.

Why it matters: Six months into office, the Trump administration has hollowed out the machinery of American soft power and retreated from key arenas where the U.S. has sought to blunt China's rise.

Driving the news: Voice of America — the U.S.-funded broadcaster long trusted to reach audiences inside authoritarian regimes — has gone dark in key regions after the Trump administration gutted its parent agency.

The big picture: Across domains where the U.S. once projected influence without military force, the Trump administration is unilaterally disarming.

Zoom in: In prioritizing trade and market access, Trump has adopted a less confrontational approach to the Chinese national security challenges that had — until recently — united Washington across partisan lines.

What they're saying: "The Biden administration oversaw a bloated and waste-ridden operation that doled out billions of dollars annually without oversight and resulted in duplicative or even contradictory foreign policy," White House spokesperson Anna Kelly said in a statement.

Between the lines: While Beijing has stepped into some voids left by America's retreat, it has shown little appetite for taking on large-scale humanitarian aid or governance reform work.

Secretary of State Marco Rubio, a China hawk who aggressively advocated for foreign aid as a senator, has embraced the "America First" model of tying U.S. assistance to the nation's interests, rather than promoting values.

The intrigue: Rubio's firing of thousands of State Department officials, including China policy staff, has raised concerns that the U.S. is sidelining its own expertise in ways that ultimately could benefit Beijing.

The flipside: Economy argues there's a dangerous short-termism to the administration's cuts in areas such as foreign aid or educational exchanges.

By the numbers: A new Pew Research poll of 25 countries found that China — not the U.S. — is now the world's leading economic power.

Axios' Marc Caputo contributed reporting.