Abstract
China’s rise has been prominent in contemporary history. It overtook Japan as the world’s second largest economy in 2010, and its growth has continued though at a slower pace. China’s impact is increasingly felt by the international community in sectors including development assistance. As a recent example, during the inaugural Belt and Road Forum for International Cooperation in Beijing in May 2017, the Chinese government pledged substantial financing to the developing world. Some of the measures include: China will provide US$8.81 billion (RMB 60 billion) of aid over the next three years to developing countries (and international organizations) participating in the Belt and Road; The China Development Bank will set up a special lending scheme of US$36.7 billion (RMB 250 billion) to support the Belt and Road; The China Export-Import Bank (China Exim Bank) will set up a similar scheme of US$14.6 billion (RMB 100 billion) and an additional US$4.4 billion (RMB 30 billion) Infrastructure Development Fund (Xinhua, 2017). By 2016, Chinese enterprises had invested US$18.55 billion in countries along the Belt and Road and created 177,000 employments for them (MOFCOM, 2017).
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
One US dollar bought 6.81 Chinese RMB on 31 May 2017. This rate is used in the paper.
- 2.
MOFCOM has experienced such difficulty in collecting aid data from other Chinese agencies to produce the two white papers on Chinese foreign aid.
- 3.
For example, a senior official from Papua New Guinea’s Department of Central Planning and Monitoring expressed such views during interview with the author, Port Moresby, November 2015.
- 4.
For more details, see http://www.focac.org/eng/; https://eng.yidaiyilu.gov.cn.
- 5.
The principal of concessional loans is borrowed by the China Exim Bank from the market at commercial rates. The interest gap here refers to the interest difference between concessional and commercial loan rates.
- 6.
- 7.
For instance, some criticize the commercial operation of these farms in Africa and the tensions between Chinese management and local staff.
- 8.
Author’s interview, Canberra, July 2016.
- 9.
- 10.
This is based on the author’s research and observation during fieldwork in countries including Cambodia, Timor-Leste, Papua New Guinea and other Pacific island countries.
- 11.
Author’s interviews, November 2013–September 2015.
- 12.
The three agencies include the Executive Bureau of International Economic Cooperation (Agency for International Economic Cooperation), China International Centre for Economic and Technical Exchanges and the Academy for International Business Officials.
- 13.
Author’s interview with UNDP official, Canberra, June 2016.
References
Abdenur, A. E., & João Moura Estevão Marques, D. A. F. (2013). The North’s Growing Role in South-South Cooperation: Keeping the Foothold. Third World Quarterly, 34(8), 1475–1491.
ADB. (2017). Meeting Asia’s Infrastructure Needs. Manila: Asian Development Bank (ADB).
AidData. (2017). Tracking Chinese Development Finance-BETA. Retrieved from http://china.aiddata.org
Breslin, S. (2013). China and the South: Objectives, Actors and Interactions. Development and Change, 44(6), 1273–1294.
CDB. (2017). Guo kai hang: tuchu fuwu “yi dai yi lu” jianshe [China Development Bank: To Prioritize the Service for Belt and Road]. Retrieved from http://www.cdb.com.cn/xwzx/khdt/201702/t20170204_4068.html
Chandy, L., & Kharas, H. (2011). Why Can’t We All Just Get Along? The Practical Limits to International Development Cooperation. Journal of International Development, 23(5), 739–751.
Chen, X. (2009). Xinshiqi zhongguo da waijiao de fangxiang [Direction for China’s Big Diplomacy in a New Era]. Retrieved from http://lw.xinhuanet.com/htm/content_4954.htm
Chin, G., & Quadir, F. (2012). Introduction: Rising States, Rising Donors and the Global Aid Regime. Cambridge Review of International Affairs, 25(4), 493–506.
De-Haan, A. (2011). Will China Change International Development as We Know It? Journal of International Development, 23(7), 881–908.
DeHart, M. (2012). Remodelling the Global Development Landscape: The China Model and South-South Cooperation in Latin America. Third World Quarterly, 33(7), 1359–1375.
Dornan, M., & Brant, P. (2014). Chinese Assistance in the Pacific: Agency, Effectiveness and the Role of Pacific Island Governments. Asia & the Pacific Policy Studies, 1(2), 349–363.
Gore, C. (2013). The New Development Cooperation Landscape: Actors, Approaches, Architecture. Journal of International Development, 25(6), 769–786.
Grimm, S., Rank, R., McDonald, M., & Schickerling, E. (2011). Transparency of Chinese Aid – An Analysis of the Published Information on Chinese External Financial Flows. Stellenbosch, South Africa: Center for Chinese Studies, University of Stellenbosch.
Hanusch, M. (2012). African Perspectives on China-Africa: Modelling Popular Perceptions and their Economic and Political Determinants. Oxford Development Studies, 40(4), 492–516.
MFA. (2017). Full Text of President Xi’s Remarks at Plenary Session of BRICS Xiamen Summit. Retrieved from http://www.fmprc.gov.cn/mfa_eng/topics_665678/XJPZCJZGJLDRDJCHWHXXSCGJYFZZGJDHH/t1489862.shtml
MoF. (2017). Zhonghua renmin gongheguo caizhengbu yusuansi: caizheng shuju [Department of Budget, Ministry of Finance, People’s Republic of China: Financial Statistics]. Retrieved from http://yss.mof.gov.cn/zhengwuxinxi/caizhengshuju/index.html
MOFCOM. (2017). Shangwubu hezuosi fuzeren tan 2016 nian woguo duiwai touzi hezuo qingkuang [Official in Charge of MOFCOM’s Department of International Trade and Economic Affairs Talked About Chinese Overseas Investment in 2016]. Retrieved from http://www.mofcom.gov.cn/article/ae/ag/201701/20170102502097.shtml
OECD. Development Finance of Countries Beyond the DAC [Data file]. Retrieved from http://www.oecd.org/development/stats/non-dac-reporting.htm
Samy, Y. (2010). China’s Aid Policies in Africa: Opportunities and Challenges. The Round Table, 99(406), 75–90.
State Council. (2011, April 22). Zhongguo de duiwai yuanzhu [China’s Foreign Aid]. People’s Daily, p. 22.
State Council. (2014, July 11). Zhongguo de duiwai yuanzhu (2014) [China’s Foreign Aid (2014)]. People’s Daily, p. 22.
The World Bank. World Development Indicators: Net Official Financial Flows [Data file]. Retrieved from http://wdi.worldbank.org/table/6.10
Xinhua. (2017). Full Text: List of Deliverables of Belt and Road Forum. Retrieved from http://news.xinhuanet.com/english/2017-05/15/c_136286376.htm
Zhang, D. (2017). Why Cooperate with Others? Demystifying China’s Trilateral Aid Cooperation. The Pacific Review, 30(5), 750–768.
Zhang, D., & Smith, G. (2017). China’s Foreign Aid System: Structure, Agencies, and Identities. Third World Quarterly, 38(10), 2330–2346.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 The Author(s)
About this chapter
Cite this chapter
Zhang, D. (2020). Chinese Foreign Aid and Financing: An Example of New Development Assistance?. In: Jing, Y., Mendez, A., Zheng, Y. (eds) New Development Assistance. Governing China in the 21st Century. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-13-7232-2_10
Download citation
DOI: https://doi.org/10.1007/978-981-13-7232-2_10
Published:
Publisher Name: Palgrave Macmillan, Singapore
Print ISBN: 978-981-13-7231-5
Online ISBN: 978-981-13-7232-2
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)