Though the Obama administration’s decision to withhold much of the $1.3 billion in annual aid given to Egypt isn’t surprising, there several arguments why such decision is facing huge critisms. Cutting aid is a lose-lose proposition: It will cost Washington substantial influence within Egypt without achieving any gains for either American geostrategy or democratic prospects within Egypt. It is an unforced error in the extreme. While the influence of China in Africa, and many other parts of the world, is growing very fast the USA still following the same politics in the MENA region without taking wider initiatives to meet the real needs for promoting democracy through collaboration within education, health, water, agro-industries and other sectors that can make difference for the population. The so-called “aid” is not even fair since it has only promoted the US-interests in the MENA region.