The Dialectics of China’s Foreign Aid: Interactions Shaping China’s Aid Policy

Abstract

China’s foreign aid has received much attention, but the knowledge of its determinants is limited. We show how domestic political forces interact with international circumstances to shape Chinese aid policies. The article applies Carol Lancaster’s framework on the interaction of domestic ideas, institutions, and interests in the development of foreign aid policy. We describe the dynamics of the Chinese domestic context and the interaction of these forces with international circumstances. The article concludes that shifts in ideology and interest both facilitated and required changes in the foreign aid program. While other countries are subject to similar domestic political forces, China appears relatively unique as donor because of large oscillations and simultaneous continuity of its aid program under the pressure of these domestic political forces.