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Aid Structure and Size

• Because Chinese economic growth depends on supplies of natural resources, especially energy-related resources, much of China's foreign aid has sought to expand supplies of such resources.
• Newly pledged aid from China was $124.8 billion in 2009, $168.6 billion in 2010, and $189.3 billion in 2011 — all far above the $1.7 billion it pledged in 2001.

Breakdown by Region

• Latin America received more aid than any other region between 2001 and 2011.
• In Africa, aid has been focused on a mix of natural resource programs and infrastructure.
• Middle East countries have received aid aimed at debt forgiveness, oil and gas projects, and railway construction.
• Aid in South Asia has focused on infrastructure and financial aid.
• Central Asia received relatively little aid. Most assistance was offered to fund oil, natural gas, and mining projects.
• Aid to East Asia reflected a more balanced approach than those taken in other regions, with a primary focus on infrastructure.

Future Directions

• Whether the scale of China's aid will increase, decrease, or remain the same in coming years is unclear.
• Facing slower economic growth, some policymakers in China may seek to maintain or even increase aid as a valuable stimulus for exports.
• If China's industrial demands for natural resources continue to grow, China may have incentives to expand supplies through aid agreements with developing countries and regions.
• Competing claimants on domestic, government-financed resources may view reductions of aid as a way to free resources to meet these other claims.