Since the 1950s, Chinese foreign aid has been influenced by and linked with China’s investment, trade, and foreign policy objectives. Partly as a result, it has also been fairly opaque. However, as Chinese aid (and loans) have increased in volume and significance, and as China’s economic status has improved, this opacity has become more challenging for recipient countries to manage. The creation of China’s International Development Cooperation Agency (CIDCA) in 2018 can be seen as a concerted move by China to allay these concerns by making a stronger commitment towards a clearer distinction among the various types of Chinese financial flows. However, it remains difficult for recipient countries to navigate the system.

Report by the Centre for Global Development