What difference does it make? China and global aid

The chapter analyses China’s role in relation to the upheaval and changing international development finance regime and the global aid architecture following the war in Ukraine. China’s approach to multilateral aid is not seeing major changes in disbursements, although China is becoming more assertive in its multilateral engagement. The chapter discusses China’s financial contributions and its approach to key issues in global aid policy: debt management, humanitarian aid, climate change, and mobilisation of development finance. The chapter notes that China has not really stepped in when traditional donors are scaling down. China is unlikely to fill the gaps following reduced aid resources from traditional donor countries. Its main contributions will continue to be in bilateral aid. The chapter summarises the ongoing changes in bilateral aid to Africa. It notes that China is adapting to experiences and lessons from 20 years of expansion of its development aid to the continent. China’s grant aid is showing increasing similarities with aid from traditional donor countries in social and economic sectors. Chinese development finance through concessional loans may be further reduced. The strong emphasis on mechanisms for stimulating private capital and business development is likely to remain. China’s political commitment to cooperation and dialogue with Africa remains a strong asset in China’s relations with Africa. At the same time, key principles in Chinese foreign policy associated with sovereignty and non-interference are under pressure. A growing gap is emerging between principles and rhetoric on the one hand, and realities on the other.