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Chinese foreign aid

Chinese foreign aid may be considered as both governmental (official) and private development aid and humanitarian aid originating from the People's Republic of China (PRC).

Chinese official aid - unlike most major nation-state sources of aid - is not regulated and measured under the OECD's protocols for official development assistance (ODA). According to OECD estimates, 2020 official development assistance from China increased to US$4.8 billion. In this respect, the program is similar in monetary size to those of Norway and Canada. China, however, provides a larger amount of development finance in the form of less-concessional loans. The Chinese government represents its aid as characterised by a framework of South-South cooperation and "not interfering in the internal affairs of the recipient countries".

In 2018, China established the China International Development Cooperation Agency (CIDCA) to have the main responsibility for coordinating the country's foreign aid. Other government bodies continue to have roles in administering foreign aid from China.

China's approach to foreign aid has changed a number of times since the 1949 establishment of the PRC, often prompted by changing domestic circumstances and domestic politics.

During the Mao era, China focused on providing aid to other countries in support of socialist and anti-imperialist causes. An early instance was the donation of CHF 20 million to Egypt 1956 during the Suez Crisis. By the 1960s, China was more broadly providing aid to dozens of Third World countries in Asia and Africa. When China began its foreign aid program, it was the only poor country that was supplying outbound foreign aid, even providing assistance to countries that had a higher GDP per capita than China. Although China also received foreign aid, it was a net donor of foreign aid during this period.

During the Cold War, China's foreign aid was often motivated by geopolitics, particularly the issue of international recognition of the PRC (as opposed to the Republic of China government on Taiwan).

From 1956 to 1976, China provided $3.665 billion in foreign aid to the third world. China provided ten percent of these aid funds to Middle Eastern countries.

From 1970 and 1975, China helped finance and build the TAZARA Railway in East Africa, which cost about $500m, and as of 2012 was considered to be China's largest-ever single-item aid project. In 1974 (near the end of Mao Zedong's period as China's leader), aid reached the remarkably high proportion of 2% of gross national product. The proportion declined greatly thereafter although the absolute quantity of aid has risen with China's growing prosperity.

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