Many US policies are creating a void for other countries to fill

This article is authored by Mehdi Hussain, research associate, Indian Council of World Affairs, New Delhi.

For decades, the US stood as the quintessential model of globalisation, championing democracy, a neo-liberal market economy, multiculturalism, and serving as a cradle of innovation and opportunity. It remains a dream destination for people across the globe, admired for its progressive values, vibrant culture, and leadership in science, technology, and entertainment—from Hollywood to Silicon Valley. For long, it attracted the world’s brightest minds to its dynamic economy and world-class research institutions.

US President Donald Trump (AFP)

However, under this image is now eroding. The administration’s inward-looking policies, marked by disruption of global trade norms, tightening of international migration, and withdrawal from multilateral institutions, have shaken the foundations of American global leadership. America is increasingly perceived as unreliable and unpredictable, creating space for other nations to recalibrate and assert their presence on the world stage.

This vacuum in global leadership and trust is now being filled by proactive actors like India, Asean, China, and other countries of the Global South. They are advancing alternative models of global engagement and cooperation, embracing multipolarity across innovation, education, trade, and climate leadership.

One telling shift is seen in global education trends. The 2025 Report on Chinese Students’ Overseas Study and the 2025 Blue Book on Chinese Students Studying Abroad reveal a significant drop in the US’s appeal as a preferred study destination. The UK now leads, followed by Hong Kong SAR, Australia, Japan, Singapore, and Canada—with the US dropping to fourth place. This shift is largely driven by stringent visa policies targeting Chinese STEM and CCP-linked students, broader immigration restrictions, and scrutiny over social media for security concerns. According to Forbes, 12 non-profit US institutions are already facing financial vulnerability due to declining foreign student enrollment, threatening the stability of smaller colleges.

In contrast, countries like the UK are capitalising on this shift by introducing favourable policies such as the graduate route visa, allowing international students to work for two years post-study. Fast-tracking STEM visa applications further reinforces its appeal.

The US retreat from globalisation also threatens its own research and development (R&D) ecosystem. Its withdrawal from global institutions like the Paris Accord, WHO, and UNESCO has encouraged new international partnerships elsewhere. The EU’s Horizon 2020 initiative, Europe’s largest research and innovation programme, is enhancing global competitiveness in areas like climate, health, ICT, and energy. India’s IMPRINT (Impacting Research Innovation and Technology), launched in 2015, focuses on applied research in critical sectors like clean water, sustainable urbanisation, health care, and IT, fostering academia-industry collaboration.

Meanwhile, the US-China tech war has spurred China to scale up its semiconductor ecosystem, ban American tech firms like NVIDIA and Micron, and weaponise rare earth elements. These developments are accelerating China’s domestic innovation, particularly in AI and 5G, and prompting global supply chain diversification. The rise of China Plus One strategies highlights countries’ efforts to reduce overdependence on Chinese semiconductors while ensuring technological sovereignty.

India, too, is intensifying its domestic capabilities. Through initiatives like Atmanirbhar Bharat Abhiyan and Make in India, the country is boosting self-reliance in manufacturing, technology, infrastructure, and defence. Notable initiatives include the India Semiconductor Mission, Production Linked Incentive (PLI) schemes, Ayushman Bharat for healthcare infrastructure, and robust digital public infrastructure like UPI and AI-driven platforms. During the Covid-19 pandemic, India exported over 65.5 million vaccine doses to more than 90 countries, underscoring its global health leadership. India is also making strides in 5G, Internet of Things (IoT), and semiconductor partnerships with countries like the US, Taiwan, South Korea, and Singapore.

In Southeast Asia, Asean countries are increasingly central to the emerging global order. The region has become a dynamic hub for digital transformation and supply chain resilience. Nations such as Vietnam, Malaysia, and Thailand are actively drawing investments in semiconductors and electronics, positioning themselves as vital alternatives in the global manufacturing ecosystem. Singapore stands out as a regional leader in fintech, artificial intelligence, cybersecurity, and green finance, serving as a base for the Asia-Pacific operations of major global tech firms. Asean’s commitment to regional integration—through frameworks like the Asean Digital Masterplan 2025, the Asean Smart Cities Network, and the Regional Comprehensive Economic Partnership (RCEP)—underscores its ambition to foster a digitally empowered, interconnected, and innovation-driven economy. Moreover, regional initiatives in renewable energy and sustainable infrastructure highlight Asean’s growing leadership in the Global South’s climate transition efforts.

In the green energy space, India’s International Solar Alliance is gaining momentum, while domestically, it is pushing ahead with its National Green Hydrogen Mission—aiming for 5 MMT of annual production by 2030—and developing battery storage systems to support a clean energy transition.

Globally, a multipolar order is emerging. China, India, Asean, and the EU are growing stronger in AI, semiconductors, climate action, and innovation. China's launch of DeepSeek AI is an example of how localised technology can empower developing nations. Across the Global South, countries are striving to reduce vulnerabilities to global shocks by enhancing their positions in strategic sectors.

These dynamic shifts are not just filling the void left by a retreating US, they are actively reshaping the contours of the global order, giving rise to new regional hubs of innovation, education, and scientific collaboration.

This article is authored by Mehdi Hussain, research associate, Indian Council of World Affairs, New Delhi.