US and Chinese Aid to Africa: A Relational Approach to Impact on Soft Power

Abstract

Abstract Over the last two decades, China has become increasingly influential in Africa, and the US policy pivoting to confront domestic challenges and withdrawing from its role in international fora has raised many concerns. Based on this global context, this paper examines the US-China soft power competition through foreign aid. It takes a relational lens to analyze their aid to the African countries. It first looks at how foreign aid could be transformed into soft power assets, and then innovatively puts the two countries side by side and examines the relational powers of their foreign aid and the impacts on the other’s national image. The paper uses ordered (Ordinary Least Squares) OLS, ordered logit, and IV regression to analyze aid data and opinion poll data. The results show that foreign aid can promote the African perceptions of both countries. It also finds that Chinese aid has a negative impact on the image of the US in Africa, while American aid has no significant effect on African perception of China. This conclusion aligns with the competitive nature of the US–China relationship. China’s model of aid may be preferred by Africans, while the US may need to revisit its approaches in Africa in order to turn this situation around.