China’s foreign aid as a proxy of ODA: preliminary estimate 2001-2022

Abstract

ABSTRACT By establishing the China International Development Cooperation Agency (CIDCA) in 2018, China has attempted to enhance foreign aid as a diplomatic means and has been more assertive in providing foreign aid through both bilateral and multilateral channels. However, China only publishes aggregated foreign aid statistics in white papers, and data beyond 2019 are not available. This paper aims to estimate China’s foreign aid from 2001 to 2022 as a proxy for Official Development Assistance (ODA) defined by the Organisation for Economic Co-operation and Development. The results revealed that China’s foreign aid, on a grant-equivalent basis, decreased from US$6.4 billion in 2019 to US$5.0 billion in 2020. China has mobilized a large amount of funding for international cooperation on COVID-19. It is unclear how much of this was financed by regular foreign aid budgets. Thus, two cases were set in the current study. In the upper case, all donated vaccines, estimated at US$3.9 billion, came from other sources while in the lower case, it was assumed that the regular foreign aid budget covered all costs. China’s foreign aid in 2022 was estimated at US$7.9 billion in the upper case and US$5.0 billion in the lower case. Compared with major ODA donors, China ranked 6th in the upper case and 13th in the lower case. Currently, the CIDCA is attempting to mobilize new financial resources to expand its activities under the Global Development Initiative. It is important to continue to comprehensively examine how China proceeds in improving its development cooperation.