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epared for Members and Committees of Congress

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
ž––Š›¢ȱ
In the past several years, the People’s Republic of China (PRC) has bolstered its diplomatic
presence and garnered international goodwill through its financing of infrastructure and natural
resource development projects, assistance in the carrying out of such projects, and large economic
investments in many developing countries. This report examines China’s economic impact in
three regions — Africa, Latin America (Western Hemisphere), and Southeast Asia — with an
emphasis on bilateral foreign assistance.
China’s foreign aid is difficult to quantify. The PRC government does not release or explain
Chinese foreign aid statistics and much of PRC foreign aid does not appear to be accounted for in
the scholarly literature on foreign aid. Some Chinese foreign assistance partially resembles
official development assistance (ODA) as defined by the Organization for Economic Co-
operation and Development (OECD), but in other aspects shares characteristics of foreign
investment. In terms of development grants, the primary form of assistance provided by major
OECD countries, China is a relatively small source of global aid. However, when China’s
concessional loans and state-sponsored or subsidized overseas investments are included, the PRC
becomes a major source of foreign aid.
This report is based on research done by the New York University Robert F. Wagner Graduate
School of Public Service in 2007-2008. The Wagner School study, while not comprehensive,
suggests a dramatic increase in PRC foreign aid and related activity. According to the research,
which is largely based upon news reports of Chinese foreign economic activity, PRC foreign
assistance and government-supported economic projects in Africa, Latin America, and Southeast
Asia grew from less than $1 billion in 2002 to $27.5 billion in 2006 and $25 billion in 2007. Aid
and related investment to Africa showed the most significant increase. These totals, however,
should be interpreted with caution. Some aggregate values may be inflated: Some PRC loans or
aid pledges may not have been fulfilled and some aid pledges that include multiple projects or
that span several years may have been counted more than once. Some PRC investment activities
may more closely resemble FDI than aid. In other ways, totals may be undervalued, such as when
economic projects or data have not been reported or when the values of Chinese materials and
labor have not been included.
Overall, China’s foreign assistance during the past several years has been driven primarily by
Beijing’s desire to secure and transport natural resources and secondarily for diplomatic reasons.
According to the NYU Wagner School study, during the 2002-2007 period, Africa received the
greatest amount of loans and development assistance, followed by Latin America and Southeast
Asia. The study suggests that China’s foreign aid activities in Africa and Latin America serve the
PRC’s immediate economic interests, while those in Southeast Asia relate to longer term
diplomatic or strategic objectives. In Africa and Southeast Asia, Chinese infrastructure and public
works projects constitute the most common form of aid, while in Latin America, where some
countries are more developed, PRC-sponsored natural resource development activities are more
prominent.
China is fast becoming a top trading partner to Africa and Southeast Asia, and it is second to the
United States as a market for Latin American commodities and goods. Although the PRC’s aid
projects are a highly visible reminder of China’s growing “soft power,” other countries and
regions, such as the European Union, the United States, and Japan, continue to dominate foreign
direct investment in Africa, Latin America, and Southeast Asia. This report will not be updated.
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
˜—Ž—œȱ
Introduction ..................................................................................................................................... 1
Measuring China’s Foreign Aid....................................................................................................... 1
China’s Foreign Aid Impact ...................................................................................................... 4
Major Findings of the NYU Wagner School Study......................................................................... 5
Regional Highlights......................................................................................................................... 9
Africa ........................................................................................................................................ 9
Latin America.......................................................................................................................... 13
Southeast Asia ......................................................................................................................... 15

’ž›Žœȱ
Figure 1. Reported PRC Aid by Year and Region, 2003-2007 ........................................................ 6
Figure 2. Reported PRC Foreign Aid by Funding Source............................................................... 7

Š‹•Žœȱ
Table 1. Similarities and Differences between OECD-Defined “Official Development
Assistance” (ODA) and “Chinese Aid”........................................................................................ 3
Table 2. Reported PRC Aid by Year, 2002-2007 ............................................................................. 6
Table 3. Reported PRC Aid by Funding Source and Region, 2002-2007 ....................................... 7
Table 4. Reported PRC Aid by Year and Region, 2002-2007.......................................................... 8
Table 5. Reported PRC Aid by Type and Region, 2002-2007......................................................... 8
Table 6. Selected African Countries with Large Reported Aid and Investment Projects,
2002-2007................................................................................................................................... 12
Table 7. Selected Major PRC Financing and Aid-Related Economic Projects in Africa .............. 13
Table 8. Selected Latin American Countries with Large Reported Aid and Investment
Projects, 2002-2007.................................................................................................................... 15
Table 9. Selected Major PRC Financing and Aid-Related Economic Projects in Latin
America ...................................................................................................................................... 15
Table 10. Selected Southeast Asian Countries with Large Reported Aid and Investment
Projects, 2002-2007.................................................................................................................... 17
Table 11. Selected Major PRC Financing and Aid-Related Economic Projects in
Southeast Asia ............................................................................................................................ 18
Table A-1. Selected PRC Aid and Investment Projects in 2008 (Announced or Begun):
Africa.......................................................................................................................................... 19
Table A-2. Selected PRC Aid and Investment Projects in 2008 (Announced or Begun):
Latin America............................................................................................................................. 20
Table A-3. Selected PRC Aid and Investment Projects in 2008 (Announced or Begun):
Southeast Asia ............................................................................................................................ 21
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ

™™Ž—’¡Žœȱ
Appendix. Recent PRC Foreign Assistance and Investment Projects (2008) ............................... 19

˜—ŠŒœȱ
Author Contact Information .......................................................................................................... 21

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
—›˜žŒ’˜—ȱ
This report examines China’s aid-related activities in Africa, Latin America, and Southeast Asia.1
In the past several years, China’s growing “soft power” — primarily diplomatic and economic
influence in the developing world — has become a concern among many U.S. foreign policy
leaders, including Members of Congress.2 One of the most important ways in which the People’s
Republic of China (PRC) has bolstered its economic presence and garnered international goodwill
has been through its offers of financing or concessional loans for infrastructure projects, large
economic investments, and the signing of trade agreements. Many observers have praised
Chinese aid and investment as filling unmet development needs, particularly in countries that
have been relatively neglected by major aid donors. Others have criticized China for failing to
promote democracy, equitable and sustainable development, and environmental preservation in
these countries. Some U.S. policy-makers and others have expressed frustration that because of
China’s policy of providing foreign assistance without conditions, they are losing the ability to
influence the behaviors of aid recipients regarding human rights and economic reforms. Some
reports indicate, however, that PRC foreign aid, investment, and trade activities may begin to
contract as the global economic crisis unfolds.
ŽŠœž›’—ȱ‘’—ŠȂœȱ˜›Ž’—ȱ’ȱȱ
PRC foreign assistance is difficult to quantify. Still a developing country itself, China appears to
administer foreign aid in an ad hoc fashion, without a centralized system, foreign aid agency and
mission, or regularized funding schedule.3 Nor does Beijing publicly release foreign aid-related
data. Some analysts surmise that the Chinese leadership is reluctant to be perceived as a major aid
donor, since the PRC itself continues to be a recipient of foreign assistance and because the
government fears that its citizens may object to lavish spending on economic projects abroad.
Estimates of China’s foreign assistance, which consists mainly of concessional or low-interest
loans and government-backed or subsidized investments in infrastructure and natural resources,
vary widely due to the different definitions of aid. A relatively small portion of Chinese aid
includes what typically is characterized as “official development assistance” (ODA) by the
world’s major aid donors, such as development grants, humanitarian assistance, social welfare
programs, and food aid. China also provides relatively little military and security-related
assistance. Few of China’s foreign aid activities fit the Organization for Economic Co-operation
and Development’s (OECD) definition of ODA — “flows of official financing to developing
countries provided by official agencies which have a clear development or anti-poverty purpose
and are at least partially concessional in nature,” with a grant element of at least 25%.4

1 This report is based on research done by the New York University Robert F. Wagner Graduate School of Public
Service, Understanding Chinese Foreign Aid: A Look at China's Development Assistance to Africa, Southeast Asia,
and Latin America
, April 25, 2008. For questions or further information, please contact Thomas Lum of the
Congressional Research Service who served as project manager for this study.
2 For a discussion of China’s soft power, see CRS Report RL34620, Comparing Global Influence: China's and U.S.
Diplomacy, Foreign Aid, Trade, and Investment in the Developing World
, section by Thomas Lum.
3 Carol Lancaster, “The Chinese Aid System,” Center for Global Development, June 2007 http://www.cgdev.org.
4 OECD Glossary of Statistical Terms, http://stats.oecd.org/glossary/index.htm.
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
ŗȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
China’s aid projects to a large extent serve its own development needs, facilitating the export of
raw materials to China, and requiring that 50% of project materials and services are to be sourced
in the PRC. By contrast, the foreign aid programs of the United States, European countries, and
most other major aid donors are not directly or strongly linked to their own economies.
Furthermore, they often include objectives or conditions related to political development and
democratic reform. Among OECD countries, Japan’s history of ODA, with its relatively large
loan component (from 60% in the mid-1990s to roughly 25% a decade later),5 emphasis on
infrastructure projects, and links to its own economy, may come closest to providing a model for
China’s foreign assistance.6
China reportedly has taken some tentative steps toward making its foreign aid process more
centralized and transparent, coordinating its programs with other aid providers, and offering more
development-oriented assistance, while continuing to eschew the label of major ODA donor. The
PRC has begun sending abroad “youth volunteers,” similar to U.S. Peace Corps volunteers,
engaged in teaching and training in such subjects as Chinese language and medicine, computer
skills, agricultural technologies, and sports.7
Many forms of Chinese foreign assistance that are included in this report share only some
characteristics with traditional development assistance as provided by major aid donors, and have
often been overlooked in the literature on global foreign aid. Although they often do not fit the
OECD’s narrow definition of development assistance, many of China’s economic activities in
developing countries are supported by the PRC government and provide benefits to recipient
countries that otherwise may not be available. Furthermore, many PRC economic investments
abroad can be counted as aid rather than foreign direct investment (FDI) because they are secured
by official bilateral agreements, do not impose real financial risks upon the PRC companies
involved, or do not result in Chinese ownership of foreign assets. See Table 1.

5 Japan's Official Development Assistance White Paper 2007; “Japan Urged to Improve Quality of Foreign Aid,” Inter
Press Service News Agency
, August 18, 2005; “Japan and Asia: Developing Ties,” OECD Observer, 2008; Japan
Ministry of Foreign Affairs.
6 Edward J. Lincoln, “Japan: Using Power Narrowly,” Council on Foreign Relations, Winter 2003.
7 China reportedly has youth volunteers in 50 countries, mostly in Africa and Southeast Asia, and has begun to send
volunteers to Latin America. The Chinese government has pledged to send 300 volunteers to Africa by 2009. “China to
Send Youth Volunteers to Africa this Year,” The Ethiopian Herald, February 17, 2007.
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
Řȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
Table 1. Similarities and Dif erences between OECD-Defined “Of icial Development
Assistance” (ODA) and “Chinese Aid”
Financing Strong
Grant
through Links to Concessional Receives Element
Government Develop-
Donor
or Favorable Payment
of at
Private or
to
ment
Country
Lending
of Debt in Least Corporate

Government Agency Economy
Terms
Kind
25%
Financing
OECD
yesa
yes no yes no yes no
Aid
Donor
China yes nob yesc yes yesd no no
Sources: Penny Davies, “China and the End of Poverty in Africa,” August 2007; “Building Bridges: China’s
Growing Role as Infrastructure Financier for Sub-Saharan Africa,” The World Bank, No. 5 (2008).
a. Grants may be awarded to NGOs based in either the donor country or recipient country.
b. PRC aid is provided largely in the form of concessional loans administered by the China Eximbank.
c. Aid projects facilitate the export of natural resources and commodities to China and utilize PRC companies,
materials, and labor.
d. In some cases, aid recipients make payments on loans from China with oil or minerals.

Many estimates of China’s foreign assistance in PRC official publications and in the existing
scholarly literature do not appear to capture much of PRC aid activity. The China Statistical
Yearbook 2003-06
reportedly released an annual aid figure of $970 million. According to other
sources, annual PRC foreign assistance ranges from $1.5 billion to $2 billion.8 These figures
would place China’s aid levels comparable to those of Australia, Belgium, or Denmark.9
However, many analysts, applying more flexible definitions of foreign aid, consider actual PRC
aid numbers to be far higher. Some of the discrepancy may be caused by regarding many Chinese
economic activities abroad as foreign investment rather than aid. In 2006 and 2007, according to
various sources referring to PRC official statistics, China’s annual FDI outflows totaled roughly
$21 billion annually.10 Counting some of these outflows as aid would raise PRC foreign
assistance estimates; however, doing so also would lower calculations of China’s outward
investment levels, which are small compared to those of the United States ($216 billion in 2006).
The NYU Wagner School study on China’s foreign aid tabulated PRC foreign assistance and
related activities — pledges of aid or loans and government-sponsored investment projects —
that had been reported in 62 African, Latin American, and Southeast Asian countries between
2001 and 2008. In 2007, the last full year for which Chinese aid-related activities were examined
in the study, the Wagner School research team found projects worth up to $25 billion in
aggregate. Of this amount, $16.6 billion, or 66%, was provided in the form of loans (concessional

8 Lancaster, op. cit.; See also Phillip C. Saunders, “China’s Global Activism: Strategy, Drivers, and Tools,” Institute for
National Strategic Studies, National Defense University, 2006.
9 Organization for Economic Co-operation and Development (OECD) data. See http://www.globalissues.org/.
10 CRS Report RL34620, Comparing Global Influence: China's and U.S. Diplomacy, Foreign Aid, Trade, and
Investment in the Developing World
, op. cit., section by Dick Nanto; “Chinese Investment Pouring into Thailand’s
Neighbors,” The Nation (Thailand), December 4, 2007.
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
řȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
loans or credit lines), $7.2 billion, or 29%, represented state-sponsored investment, and the
remaining 5% included grants, debt cancellation or debt relief, and in-kind aid.11
Although the NYU Wagner School study strongly indicates that China has been providing
significant and growing amounts of economic assistance to developing countries — if not ODA
as defined by the OECD — the totals should be interpreted with caution. Some values may be
inflated: Many loans represent offers or pledges that may not have been fulfilled; some projects
have been cancelled; some aid endeavors involving several activities or taking several years to
complete may have been counted more than once; and some PRC investments that were counted
as aid may actually be FDI. In other ways, however, totals may be undervalued, such as when
projects or data have not been reported or when Chinese materials and labor have not been
included.
In terms of official development assistance as defined by the OECD, United States ODA is the
largest among OECD member countries, followed by Japan, the United Kingdom, France, and
Germany. The United States’ foreign operations budget (bilateral development, economic,
security, and military assistance, multilateral assistance, and food aid) was estimated at $24
billion in FY2008.12
‘’—ŠȂœȱ˜›Ž’—ȱ’ȱ –™ŠŒȱ
In addition to their actual monetary value, Chinese assistance and related economic activities
often garner appreciation disproportionate to their size, for several reasons:
• They often are made available relatively quickly and easily — without the political,
economic, social, and environmental conditions and safeguards and bureaucratic
procedures that major OECD aid donors, multilateral financial institutions, and
multinational corporations typically impose.13
• China often promotes economic projects in countries, areas, and sectors that
developed country governments and multinational corporations have avoided because
they have determined them to be unfriendly, too arduous, or infeasible.
• Many PRC funded or built public works in foreign countries, such as national
cultural centers, stadiums, and highways, are highly visible and provide tangible,
short-term benefits.
• Such aid and investment activities are often announced at bilateral summit meetings
with great fanfare, powerfully symbolizing the friendship between China and other
developing countries.

11 Because of the lack of official data, either from China or recipient countries, the NYU Wagner School research team
relied largely upon the international press and scholarly research. Sources included allAfrica.com, the Economist
Intelligence Unit (EIU), International Relations and Security Network, the PRC Ministry of Commerce, ReliefWeb
(United Nations), Reuters, Xinhua, and other news agencies.
12 CRS Report RL34552, State, Foreign Operations, and Related Programs: FY2009 Appropriations, by Susan B.
Epstein and Kennon H. Nakamura.
13 China’s conditions on aid are often international rather than domestic — requiring aid recipients to support the “one-
China” principle regarding Taiwan and China’s agenda in the United Nations.
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
Śȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
Š“˜›ȱ’—’—œȱ˜ȱ‘ŽȱȱŠ—Ž›ȱŒ‘˜˜•ȱž¢ȱ
The NYU Wagner School research may serve as a basis for conducting further research and
thinking about U.S. policy responses to China’s growing foreign aid and investment. The study’s
findings are not meant to be exhaustive, but may suggest the broad contours and trajectory of
Chinese aid and related activities in Africa, Latin America, and Southeast Asia:
• China’s foreign aid is driven primarily by the need for natural resources and
secondarily by diplomatic objectives, such as the objectives of isolating Taiwan and
garnering support in international organizations such as the United Nations. Beijing
also aims to open up foreign markets for Chinese goods and help PRC companies
invest, set up manufacturing plants, and develop markets overseas.
• Unlike major aid donors, China lacks a centralized aid agency affiliated with its
foreign affairs ministry. PRC assistance consists primarily of concessional loans
administered by the Ministry of Commerce through its Department of Aid to Foreign
Countries. To lesser extents, the Export-Import Bank of China (Eximbank) the
Ministry of Finance, and the Ministry of Foreign Affairs also play roles.
• Reported Chinese aid activities to the three regions grew from $1.5 billion in 2003 to
$27.5 billion in 2006 and $25 billion in 2007. Africa received the largest year-on-year
increases and showed the clearest growth trend. See Figure 1 and Table 2.
• In terms of financing, the NYU Wagner research team found that most aid to the
three regions is provided in the form of state-sponsored investment. During the 2002-
2007 period, PRC government-backed investments made up 53% of reported aid
activity, concessional loans constituted 42%, and grants and debt cancellations
accounted for the remaining 5%. See Figure 2 and Table 3.
• Of the loans, infrastructure projects, and other aid provided by China to the three
regions between 2002 and 2007, 44% was allocated to Africa, 36% to Latin America,
and 20% to Southeast Asia. See Table 4.
• During the same period (2002-2007), 44.5% of aid and investment was directed at the
natural resources and agricultural sectors while 43% supported infrastructure
development. See Table 5.
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
śȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
Figure 1. Reported PRC Aid by Year and Region, 2003-2007
20
18
16
14
12
Africa
10
Latin America
8
SE Asia
$US Billions
6
4
2
0
2003
2004
2005
2006
2007

Source: NYU Wagner School, Understanding Chinese Foreign Aid: A Look at China's Development Assistance to
Africa, Southeast Asia, and Latin America, April 25, 2008.
Notes: Annual totals represent announced loans and other reported aid and economic projects using PRC
financing.

Table 2. Reported PRC Aid by Year, 2002-2007
(Million US$)
Year Total
Aid
2002 51
2003 1,482
2004 10,485
2005 10,106
2006 27,518
2007 25,098
Source: NYU Wagner School, Understanding Chinese Foreign Aid: A Look at China's Development Assistance to
Africa, Southeast Asia, and Latin America, April 25, 2008.
Notes: Annual totals represent announced loans and other reported aid and economic projects using PRC
financing.
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
Ŝȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
Figure 2. Reported PRC Foreign Aid by Funding Source
Grants, Debt
Cancellation, In-
kind
5%
Concessional
Loans
42%
Govt. Sponsored
Investment
53%

Source: NYU Wagner School, Understanding Chinese Foreign Aid: A Look at China's Development Assistance to
Africa, Southeast Asia, and Latin America, April 25, 2008.
Notes: Annual totals represent announced loans and other reported aid and economic projects using PRC
financing.

Table 3. Reported PRC Aid by Funding Source and Region, 2002-2007
(Million US$)

Africa
Latin America Southeast Asia
Govt.-Sponsored Investment
8,042
24,389
7,429
Concessional Loan
22,379
1,950
7,114
Grant 1,851
421
231
Debt Cancellation
850
0
60
In-kind Aid
21
1
0
Source: NYU Wagner School, Understanding Chinese Foreign Aid: A Look at China's Development Assistance to
Africa, Southeast Asia, and Latin America, April 25, 2008.
Notes: Annual totals represent announced loans and other reported aid and economic projects using PRC
financing.




˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
ŝȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
Table 4. Reported PRC Aid by Year and Region, 2002-2007
(Million US$)

Africa
Latin America
Southeast Asia
2002 10 4
36
2003 838 1
644
2004 2,292 7,000 1,193
2005 2,953 2,931 4,221
2006 9,088
16,425
2,004
2007 17,962 401 6,735
Source: NYU Wagner School, Understanding Chinese Foreign Aid: A Look at China's Development Assistance to
Africa, Southeast Asia, and Latin America, April 25, 2008.
Notes: Annual totals represent announced loans and other reported aid and economic projects using PRC
financing.

Table 5. Reported PRC Aid by Type and Region, 2002-2007
(Million US$)

Africa Latin America Southeast Asia
Natural Resources Extraction/Production
9,432
18,585
4,788
Infrastructure/Public Works
17,865
7,535
6,438
Not Specified/Other
5,024
608
2,276
Humanitarian
802
32
159
Military
4
0
170
Technical Assistance
10
1
3
Source: NYU Wagner School, Understanding Chinese Foreign Aid: A Look at China's Development Assistance to
Africa, Southeast Asia, and Latin America, April 25, 2008.
Notes: Annual totals represent announced loans and other reported aid and economic projects using PRC
financing.






˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
Şȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
Ž’˜—Š•ȱ ’‘•’‘œȱ
›’ŒŠȱ
In the past several years, China’s aid to Africa has grown dramatically. During the 1970s and
1980s, China provided assistance in the form of infrastructure projects, public works, technical
and public health assistance, and scholarships to study in China. Its motivations were largely
diplomatic: to forge friendships among “non-aligned” nations and to compete with Taiwan (the
Republic of China) for recognition. Only four of 48 sub-Saharan African countries (Burkina Faso,
Sao Tome, Gambia, and Swaziland) still maintain official relations with Taiwan. In 2007, China
reportedly offered Malawi aid and investment worth $6 billion in major economic sectors. In
January 2008, Malawi switched diplomatic relations to the PRC. However, in 2008, China
reportedly offered Malawi only $287 million in aid.14 While traditional types of aid activities
remain staples of Chinese assistance in the region, many of them now complement much grander
development projects that serve China’s direct economic interests.15
According to some of the more conservative definitions and estimates, China’s foreign aid on the
continent ranges from roughly $1.4 billion annually to $2.7 billion, with outstanding concessional
loans of $8 billion-$9 billion.16 More inclusive totals from the World Bank and PRC government
refer to “infrastructure financing” ($7 billion) and “economic cooperation” ($9.5 billion) in Africa
in 2006.17 In 2007, the China Development Bank reportedly set up a $5 billion China-Africa
Development Fund to finance infrastructure, industrial, and agricultural projects.18 The NYU
Wagner School research team found PRC aid and state-sponsored investment projects in Africa
reported during the 2002-2007 period that amounted to several billion dollars annually ($6.6
billion on average). These aid activities included financing (concessional loans), grants, debt
cancellations, and economic investments. However, as explained above, these totals may be
inflated or represent the high end of a possible range of estimates.
The following data from OECD countries provide an indication of ODA levels to Africa. They are
not meant to be directly compared to estimates of Chinese assistance to the region, which are
based upon different definitions of aid. U.S. assistance to Sub-Saharan Africa, the second-largest
regional recipient of U.S. foreign assistance after the Near East and the largest recipient of U.S.
development assistance, totaled an estimated $5.2 billion in 2008 and $4.7 billion in 2007.19 The

14 Pilirani Semu-Banda, “NGO Keeping an Eye on Malawi’s New Best Friend, China,” Inter Press Service News
Agency, May 26, 2008, http://allafrica.com/; Mabvuto Banda, “Malawi Leader Says China to Give $287 Min in Aid,”
Reuters News, April 4, 2008.
15 For further discussion of Chinese influence in Africa, see Congressional Research Service, “China’s Foreign Policy
and ‘Soft Power’ in South America, Asia, and Africa: A Study Prepared for the Committee on Foreign Relations,
United States Senate,” April 2008, section by Nicolas Cook.
16 Deborah Brautigam, “China’s Africa Aid,” The German Marshall Fund of the United States, April 2008; Penny
Davies, “China and the End of Poverty in Africa,” August 2007; China Exim Bank.
17 Nick Tattersall, “Chinese Firm to Build $1 Bln Road in Nigeria Oil Hub,” Reuters News, July 13, 2008; China
National Bureau of Statistics.
18 Tom Miller, “U.S. $5 b Fund to Make First Forays into Africa,” South China Morning Post, January 8, 2009.
19 Congressional Budget Justification for Foreign Operations, FY2008.
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
şȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
United States, the United Kingdom, and France are the largest bilateral donors of ODA to Africa,
providing $5.8 billion, $5.4 billion, and $5.1 billion, respectively, in assistance in 2006.20
Estimates of PRC direct investment in Africa range from under $500 million to roughly $1 billion
annually. Historically, Europe (UK, France, and Germany), Japan, and the United States have
been the principal sources of FDI on the continent. Some studies indicate that India has more
cumulative investment in Africa ($1.8 billion in 2004) than China ($1.3 billion in 2005) and is a
major source of infrastructure financing.21 According to some estimates, in 2005, Chinese FDI
flows to Africa totaled $392 million or 3% of total PRC outward investment.22 Other studies
report that China had $2.6 billion in cumulative FDI and over $0.5 billion in annual investment in
Africa in 2006. Higher estimates include figures of nearly $1 billion in PRC annual direct
investment in Africa during 2000-2006.23 By contrast, in 2006, the United States reportedly
invested $1.5 billion in Africa out of a total of $36 billion in global FDI received by Africa that
year.24 OECD countries reportedly pledged $5 billion in ODA for infrastructure projects in Sub-
Saharan Africa in 2006.25
China has exerted growing influence as a trading partner. As part of its integrated approach,
China’s diplomatic outreach to the region is accompanied by aid, investment, and trade. China is
Africa’s third largest trading partner after the European Union and the United States.26 PRC-
Africa trade reportedly was worth $106.6 billion in 2008 compared to U.S.-Africa trade of $142
billion.27
China’s aid to Africa is driven largely by its objective of securing access to oil and minerals for its
growing economy. African oil reportedly accounts for 80% of China’s trade in the region and
about one-third of its oil imports.28 Nearly 70% of PRC infrastructure financing on the continent
reportedly is concentrated in Angola, Nigeria, Ethiopia, and Sudan, all of which have oil fields.29
Angola, Congo, and Sudan have major oil fields and pay for much of their assistance or loans
from China with oil. Sudan reportedly sends 60% of its crude oil to China.30 However, Europe
and the United States remain the largest buyers of African petroleum (33% and 36% of Africa’s

20 Organization for Economic Co-operation and Development, OECD and Africa, March 2008.
21 “U.S.-African Trade Profile,” U.S. Department of Commerce, International Trade Administration (2008); Harry G.
Broadman, “China and India Go to Africa,” Free Republic, March 16, 2008.
22 Leonard K. Cheng and Zihui Ma, “China’s Outward FDI: Past and Future,” July 2007; Jian-Ye Wang, “What Drives
China’s Growing Role in Africa,” IMF Working Paper, October 2007; Mauro De Lorenzo, “China and Africa: A New
Scramble?” American Enterprise Institute, April 6, 2007.
23 Jian-Ye Wang, “What Drives China’s Growing Role in Africa,” op. cit.
24 Hany Besada, Yang Wang, and John Whalley, “China’s Growing Economic Presence in Africa,” Policy Brief, The
Centre for International Governance Innovation, No. 6 (October 2008); CRS Report RL34620, Comparing Global
Influence: China's and U.S. Diplomacy, Foreign Aid, Trade, and Investment in the Developing World
, op. cit., section
by Dick Nanto (data excludes Egypt).
25 “Building Bridges: China’s Growing Role as Infrastructure Financier for Sub-Saharan Africa,” The World Bank,
No. 5 (2008); China National Bureau of Statistics.
26 Jian-Ye Wang and Abdoulaye Bio-Tchane, “Africa’s Burgeoning Ties with China,” Finance and Development,
International Monetary Fund, http://www.imf.org/external/pubs/ft/fandd/2008/03/wang.htm.
27 World Trade Atlas.
28 Building Bridges, op. cit.; “Africa Accounts For 30 Percent Of China's Oil Imports: Official,” People’s Daily Online,
http://english.peopledaily.com.cn, October 19, 2006.
29 “Building Bridges,” op. cit.
30 Stephanie Hanson, “China, Africa, and Oil,” Council on Foreign Relations Backgrounder, June 6, 2008.
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
ŗŖȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
oil exports, respectively).31 Estimates of China’s share of the African oil market range from 10%-
16%, although the PRC reportedly plays a larger role in the continent’s minerals markets.32 See
Table 6.
China’s aid to Africa is dominated by concessional loans and export credits provided through the
Ministry of Commerce and Eximbank. PRC loans to Africa, which reportedly grew by 35%
annually between 2001 and 2005, have been used chiefly to finance infrastructure projects in over
35 African countries (mainly hydropower and transportation).33 See Table 7. The NYU Wagner
School research team compiled a list of PRC aid and related investment projects or offers in
Africa reported during the 2002-2007 period. The combined values amounted to $33 billion.34 In
dollar terms, 54% was related to infrastructure and other public works projects, 28.5% to the
extraction or production of natural resources, and 2.5% to humanitarian activities, technical
assistance, and military assistance (15% was unspecified). In many cases, especially when the
recipient country has poor credit, loans are to be repaid in kind (oil or commodities). The China
Eximbank reported in 2007 that its outstanding loans to the continent totaled $8 billion-$9
billion.35 According to the Wagner School study, examples of PRC development and humanitarian
aid in the region include the construction of schools and hospitals, medical training and
equipment, agricultural technical assistance, food aid, and disaster assistance.




31 Zong He, “Some Responses to the ‘China Threat in Africa,’” China Daily, November 7, 2007.
32 “Building Bridges,” op. cit.
33 “Building Bridges,” op. cit.; Brautigam, “China’s Africa Aid,” op. cit.; World Bank, “Press Release: New Financiers
are Narrowing Africa’s Infrastructure Deficit,” July 10, 2008.
34 This aggregate number may include some double counting of aid that involved multiple projects or spanned several
years. The figure is not based upon a precise definition of aid and does not represent an exact aid total.
35 Davies, “China and the End of Poverty in Africa,” op. cit.
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
ŗŗȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
Table 6. Selected African Countries with Large Reported Aid and Investment
Projects, 2002-2007
Pledged Aid,
Country
Loans, Credit
Major Types of
Major Types of
Main Exports to
Lines, and
Financing (as
Projects Financed

China
Investments
Reported)
(as Reported)
Angola a b c
oil $7.4
billion
loans,
interest-free
infrastructure
loans, credit lines
(railways)
Congo (DRC) a b c oil, minerals
$5 billion
loans
infrastructure, mining
Sudan a b c
oil $4.2
billion
investment,
loans,
oil refining;
grants
infrastructure, hydro
power, humanitarian
Gabon d
oil, minerals
$3 billion
investment, grants
iron ore mining,
infrastructure, port
facilities, hydro
power
Mozambique
wood, ores
$2.4 billion
debt cancellation,
dam construction,
concessional loans,
infrastructure,

grants
national stadium
Equatorial Guinea oil
$2 billion
concessional loans,
not specified
b c
credit lines
Ethiopia
oil drilling rights
$2 billion (includes
loans, grants,
infrastructure,
2008 aid of $150
investment
telecommunications,
million)
public buildings,
hydropower, light
industry
Nigeria a b
oil $1.6
billion
debt
cancellation,
offshore oil
investment, grants
development,
infrastructure
(railways), medical
training
Source: NYU Wagner School, Understanding Chinese Foreign Aid: A Look at China's Development Assistance to
Africa, Southeast Asia, and Latin America, April 25, 2008.
a. major African trading partner of China
b. loan payments in oil
c. major African oil supplier of China
d. loan payments in minerals


˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
ŗŘȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
Table 7. Selected Major PRC Financing and Aid-Related Economic Projects in Africa

Amount
Funding (Year)
Project Type(s)
Country
$5 billion
loan (2007)
transportation infrastructure
Congo
$4 billion
investment (2007)
oil production
Sudan
$3 billion
investment (2006)
port, railway, hydropower,
Gabon
mining (iron)
$2.5 billion
loan (credit line) (2007) unspecified
Angola
$2.3 billion
loan (2006)
hydropower (dam)
Mozambique
$2 billion
loan (credit line) (2006) unspecified
Equatorial
Guinea
$2 billion
loan (credit line) (2004) unspecified
Angola
Source: NYU Wagner School, Understanding Chinese Foreign Aid: A Look at China's Development Assistance to
Africa, Southeast Asia, and Latin America, April 25, 2008.

Š’—ȱ–Ž›’ŒŠȱ
China’s growing engagement with Latin America and the Caribbean (the Western Hemisphere)
lacks the deep historical ties of its relations with Southeast Asia and legacy of its Cold War
friendships in Africa. China’s growing interest in the region appears to be principally linked to its
objective of gaining broader access to natural resources and agricultural commodities, such as oil,
ores, and soybeans. Beijing also aims to fully isolate Taiwan — 12 Latin American and Caribbean
nations still maintain diplomatic relations with Taiwan — and bolster China’s diplomatic
presence in the region. China’s recent aid to Costa Rica reportedly was directly linked to the
Central American country’s establishment of diplomatic relations with the PRC (and termination
of relations with Taiwan) in 2007. Other goals include opening up alternative markets and
opportunities for Chinese goods and investment. According to many analysts, however, Beijing
acknowledges that the United States remains the dominant economic and political influence in the
Western Hemisphere.36
The PRC is not a major foreign investor in the region. The European Union (EU) is the largest
source of FDI in Latin America, with $620 billion invested in the region in 2006, followed by the
United States with $350 billion. According to PRC official data, Latin America had received $22
billion in cumulative PRC investment at the end of 2006, about 25% of PRC total overseas
investment. However, the vast majority of PRC FDI in the region reportedly goes to off-shore
financial havens such as the Cayman Islands and the Virgin Islands, to be reinvested in China
(thereby taking advantage of tax breaks for “foreign companies”). When these destinations are

36 Peter Brookes, “Russia, China, Move In on Latin America,” Heritage Foundation, November 27, 2008; Cynthia A.
Watson, “U.S. Responses to China’s Growing Interests in Latin America: Dawning Recognition of a Changing
Hemisphere,” in Enter the Dragon? China’s Presence in Latin America, Woodrow Wilson International Center for
Scholars, February 2007. For further discussion of Chinese influence in Latin America and the Caribbean, see
Congressional Research Service, “China’s Foreign Policy and ‘Soft Power’ in South America, Asia, and Africa,” op.
cit., section by Mark P. Sullivan.
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
ŗřȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
excluded, only about $1.9 billion remains.37 According to some sources, in 2006, PRC direct
investment flows to the Western Hemisphere totaled roughly $100 million, less than its outbound
investment to Africa ($500 million).38 Conversely, Latin American companies have made sizable
investments in China with $20 billion in cumulative FDI.39
China’s trade with Latin America grew ten-fold between 2000 and 2007 and reached $142 billion
in 2008. China’s total trade with the region is only about one-fifth that of the United States ($664
billion in 2008), but growing at a faster rate.40 The United States reportedly imports 12 times
more oil from Venezuela than does China.41 Nonetheless, China has become an important trading
partner to major countries in the region, and is second only to the United States as an importer of
commodities and goods from Latin America. China’s largest trading partners in the region are
Brazil, Mexico, Chile, Argentina, and Peru.42
The NYU Wagner School research team compiled a list of PRC aid and related investment
projects or offers in the Western Hemisphere reported during the 2002-2007 period. The
combined values amounted to $26.7 billion.43 Over two-thirds of these projects were in natural
resource sectors, while 28% were related to infrastructure and public works, 1% involved
humanitarian activities and technical assistance, and 2% of aid was unspecified. In the past
several years, Chinese humanitarian assistance has included infrastructure repair in Costa Rica,
hospitals in Cuba, funding to the Bolivian Red Cross for mudslide victims, and help to people
affected by an earthquake in Peru and flood in Uruguay. In 2008, China joined the Inter American
Development Bank and committed $350 million for public and private sector projects.44 The
emphasis on natural resources implies a strongly commercial nature to China’s aid in Latin
America, less oriented toward infrastructure development than China’s foreign assistance to
Africa and Southeast Asia. See Table 8 and Table 9.
In terms of official development assistance as measured by the OECD, which often refers to
different types of aid than that typically provided by China, the EU, the United States, and Japan
are the largest providers in the region. U.S. foreign assistance to the Western Hemisphere,
including regional assistance, was an estimated $1.46 billion in 2008 and $1.55 billion in 2007.45

37 Daniel P. Erikson, “The New Challenge: China and the Western Hemisphere,” Testimony before the House
Committee on Foreign Affairs, Subcommittee on the Western Hemisphere, June 11, 2008.
38 CRS Report RL34620, Comparing Global Influence: China's and U.S. Diplomacy, Foreign Aid, Trade, and
Investment in the Developing World
, op. cit., section by Dick Nanto.
39 Erikson, “The New Challenge,” op. cit.
40 Frank Bajak, “Slowdown Doesn’t Shrink China’s LatAm Ambitions,” Associated Press, November 17, 2008; World
Trade Atlas.
41 CRS Report RL34620, Comparing Global Influence: China's and U.S. Diplomacy, Foreign Aid, Trade, and
Investment in the Developing World
, op. cit., section by Dick Nanto.
42 He Li, “China’s Growing Interest in Latin America,” The Journal of Strategic Studies, Vol. 30, No. 4-5 (August-
October 2007); Global Trade Atlas.
43 This aggregate number may include some double counting of aid that involved multiple projects or spanned several
years. The figure is not based upon a precise definition of aid and does not represent an exact aid total.
44 “China Makes IDB Aid Commitment to Bolivia, Guyana, Haiti, Honduras,” BBC Monitoring Americas, October 23,
2008.
45 Congressional Budget Justification for Foreign Operations, FY2008.
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
ŗŚȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
Table 8. Selected Latin American Countries with Large Reported Aid and
Investment Projects, 2002-2007
Pledged
Aid, Loans,
Major Types of
Credit
Major Types of Projects
Main Exports Lines, and Financing (as
Financed (as
Country to China
Investments Reported)
Reported)
Venezuela oil
$16.4 billion
investment
oil, gas exploration
and production;
transportation;
telecom; light
industry
Brazil iron
ore, $8.2 billion
investment, loans infrastructure
agricultural
(ports, aviation, rail)
commodities, oil
Chile
minerals, ores
$0.5 billion
investment
natural resources
(copper)
Columbia iron, oil
$0.4 billion
investment
steel,, oil
exploration,, mining
Costa Rica electrical
$0.4 billion
grants, loans
humanitarian,
machinery
infrastructure
Source: NYU Wagner School, Understanding Chinese Foreign Aid: A Look at China's Development Assistance to
Africa, Southeast Asia, and Latin America, April 25, 2008.

Table 9. Selected Major PRC Financing and Aid-Related Economic Projects in Latin
America
Amount Funding (Year) Project
Type(s) Country
$9 billion investment (2006) infrastructure
Venezuela
(railways), telecom,
mining, agriculture
$7 billion investment (2004) infrastructure (port, Brazil
railways, aviation),
steel
$5 billion investment (2006) energy
Venezuela
Source: NYU Wagner School, Understanding Chinese Foreign Aid: A Look at China's Development Assistance to
Africa, Southeast Asia, and Latin America, April 25, 2008.

˜ž‘ŽŠœȱœ’Šȱ
China has become an important source of infrastructure financing in Southeast Asia. While China
is not counted as a major regional provider of ODA as defined by the OECD, some reports and
observations suggest that the PRC is one of the largest sources of economic assistance in
Southeast Asia. Although access to natural resources plays a prominent role in China’s
engagement in the region, strategic interests are likely to influence China’s activities in Southeast
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
ŗśȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
Asia to a greater extent than they do in Africa and Latin America. Many of China’s aid activities
in the region appear to provide relatively greater long-term diplomatic benefits and comparatively
few short-term economic ones.
China has a large economic presence in Southeast Asia, owing in part to its proximity and
historical ties to the region. Southeast Asia’s largest sources of FDI in 2006 (net inflow) were the
EU ($13.3 billion), Japan, ($10.8 billion), the United States ($3.8 billion), South Korea ($1
billion), and China ($900 million).46 The EU, the United States, Japan, and China are the largest
trading entities in the region. In 2008, China’s trade with the Association of Southeast Asian
Nations (ASEAN) countries, at $230 billion, was larger than its trade with Africa ($106 billion)
and Latin America ($142 billion).47
China and the least developed countries of mainland Southeast Asia are becoming increasingly
economically integrated, although each of these countries also has sought to hedge against the
PRC’s rising influence. China is considered the “primary supplier of economic and military
assistance” to Burma (Myanmar), Cambodia, and Laos and provides them with an “implicit
security guarantee,” according to some analysts.48 In recent years, PRC government entities have
financed many infrastructure, energy-related (especially hydro power), agricultural, and other
high profile development projects in these countries, which also rely upon Chinese construction
materials, equipment, technical expertise, and labor. There are some indications that Chinese aid
in this part of the region is diversifying, including support for counter-trafficking in persons and
counter-narcotics efforts, programs involving Chinese youth volunteers (Laos), elections
(Cambodia), and historical preservation (Cambodia). The PRC also has financed railway
construction, hydro power development, and ship building facilities in Vietnam.49
In the past few years, China has become a major financer and investor in infrastructure, energy,
agriculture, and mining in the Philippines. According to one source, in 2006, China was the third
largest source of bilateral development assistance to the Philippines after Japan and the United
Kingdom.50 The Philippines reportedly is the largest recipient of PRC loans in Southeast Asia,
which totaled $2 billion in 2007, of which about half has been disbursed.51 One of the largest
PRC-funded projects in the country is the $1 billion North Rail line.52

46 ASEAN Foreign Direct Investment Database, August 2007.
47 World Trade Atlas; “China, ASEAN become 4th-Largest Trade Partners,” Xinhua, March 1, 2008. Data among
different sources varies.
48 Catherin E. Dalpino, "Consequences of a Growing China," Statement before the Senate Committee on Foreign
Relations Subcommittee on East Asian and Pacific Affairs
, June 7, 2005; Heritage Foundation, "Southeast Asia's
Forgotten Tier: Burma, Cambodia and Laos," July 26, 2007; Marvin C. Ott, "Southeast Asian Security Challenges:
America's Response? Strategic Forum, October 1, 2006; Joshua Kurlantzick, “China’s Charm Offensive in Southeast
Asia,” Current History, Vo. 105, no. 692 (September 2006).
49 For further information, see CRS Report RL34620, Comparing Global Influence: China's and U.S. Diplomacy,
Foreign Aid, Trade, and Investment in the Developing World
, op. cit., section by Bruce Vaughn, Thomas Lum, and
Wayne Morrison.
50 Michelle Remo, “RP Should Look to China for its Infra Funding Needs,” Philippine Daily Inquirer, March 9, 2008.
51 Katrice R. Jalbuena, “Ties with PRC, Now Most Important to RP, Also Involves Security Matters,” Manila Times,
June 29, 2008.
52 Walter Lohman, “Off the Rails in the Philippines,” Heritage Foundation, Web Memo no. 1856, March 14, 2008;
Darwin G. Amojelar, “Chinese Loans to RP Rising,” The Manila Times, December 3, 2007.
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
ŗŜȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
The NYU Wagner School research team compiled a list of PRC aid and related investment
projects or offers in Southeast Asia reported during the 2002-2007 period. The combined values
amounted to $14.8 billion.53 Of this amount, 43% was channeled toward infrastructure and public
works projects, 32% to natural resource extraction or development, 3% to military, humanitarian,
and technical assistance activities, and 22% to purposes not specified. See Table 10 and Table 11.
In terms of official development assistance as measured by the OECD, which often refers to
different types of aid than that typically provided by China, Japan remains the largest bilateral aid
donor in Southeast Asia, providing $2 billion in 2006.54 The United States funded an estimated
$517 million in aid programs in Southeast Asian countries in 2008.55 Since 2001, Indonesia and
the Philippines have received the largest increases in U.S. foreign assistance in the region, chiefly
for counter-terrorism programs. Vietnam has also received large increases in U.S. ODA, including
significant funding for HIV/AIDS programs.
Table 10. Selected Southeast Asian Countries with Large Reported Aid and
Investment Projects, 2002-2007
Main
Pledged Aid, Loans, Major Types of
Exports to
Credit Lines, and
Financing (as
Major Types of Projects
Country China
Investments
Reported)
Financed (as Reported)
Philippines ores, copper
$5.4 billion
loans, grants
infrastructure (railways), mining,
non-lethal military
Vietnam oil,
rubber, $3.4 billion
loans, investment
infrastructure (power), shipyards,
wood, ores
mining
Burma
wood, ores
$3.1 billion
investment, loans
hydropower, nickel ore
Source: NYU Wagner School, Understanding Chinese Foreign Aid: A Look at China's Development Assistance to
Africa, Southeast Asia, and Latin America, April 25, 2008.


53 This aggregate number may include some double counting of aid that involved multiple projects or spanned several
years. The figure is not based upon a precise definition of aid and does not represent an exact aid total.
54 Organization for Economic Cooperation and Development (OECD), http://www.oecd.org/home/.
55 Congressional Budget Justification for Foreign Operations, FY2008; Japan's Official Development Assistance
White Paper 2007.
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
ŗŝȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
Table 11. Selected Major PRC Financing and Aid-Related Economic Projects in
Southeast Asia
Amount
Funding (Year)
Project Type(s)
Country
$2.4 billion
Investment (2005)
steel plant
Thailand
$2 billion
Loan (2007)
infrastructure
Philippines
$2 billion
Investment (2006-
infrastructure,
Burma
2007)
hydropower, oil
pipeline
$1.6 billion
Investment (2007)
mining
Vietnam
$1 billion
Loan (2005)
power plant
Vietnam
Source: NYU Wagner School, Understanding Chinese Foreign Aid: A Look at China's Development Assistance to
Africa, Southeast Asia, and Latin America, April 25, 2008.

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
ŗŞȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
™™Ž—’¡ǯ ŽŒŽ—ȱȱ˜›Ž’—ȱœœ’œŠ—ŒŽȱŠ—ȱ
—ŸŽœ–Ž—ȱ›˜“ŽŒœȱǻŘŖŖŞǼȱ
Table A-1. Selected PRC Aid and Investment Projects in 2008 (Announced or
Begun): Africa
Value in $US
Type of Assistance or
(b = billion
Country
Investment Funding
Source
Description
m = million)
Angola Development
Govt-Sponsored
housing and related $3.5 b
Investment
infrastructure
Congo Infrastructure/Public
Concessional Loan optical cable
$35 m
Works
network
Congo Infrastructure/Public
Govt-Sponsored
transportation,
$9 b
Works; Natural Resources Investment;
mining sector
Concessional Loan
Ethiopia Infrastructure/Public
Grant/Donation construction
of $150 m
Works
African Union Hall
Ethiopia Infrastructure/Public
In-kind
vehicles and office
not specified
Works
equipment
Ethiopia Infrastructure; Govt-Sponsored
industrial park
$713 m
Development
Investment
Gabon Infrastructure/Public
Concessional Loan hydroelectric dam
$83 m
Works
Kenya Infrastructure/Public
Concessional Loan road construction
$120 m
Works
Liberia Infrastructure/Public
Grant; In-kind
hospital and
$10 m
Works
medical supplies
Madagascar Humanitarian;
Grant
medical aid team
not specified
Development
Niger Natural
Resources
Govt-Sponsored
oil drilling,, refinery $5 b
Investment
Nigeria Infrastructure/Public
Govt-Sponsored
road construction
$1 b
Works
Investment
Nigeria Infrastructure/Public
Govt-Sponsored
power plant
$2.4 b
Works
Investment
Rwanda Infrastructure/Public
Grant hospitals
$1.5
m
Works
Sierra Leone
Infrastructure/Public
Concessional Loan telecommunications $20 m
Works
network
Sudan Humanitarian Grant;
In-kind
de-mining
training,
not specified
mine sweeping
equipment
Sudan Humanitarian Grant;
In-kind
housing
shelters,
$11 m
health equipment
˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
ŗşȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
Value in $US
Type of Assistance or
(b = billion
Country
Investment Funding
Source
Description
m = million)
Uganda Military
Grant;
In-kind
military
training,
not specified
trucks and
equipment
Uganda Development Grant upgrade
health
$15 m
centers
Uganda Infrastructure/Public
Grant/Donation government
office $20 m
Works
complex
Zambia Infrastructure/Public
Govt-Sponsored
power station
$400 m
Works
Investment;
expansion
Concessional Loan
Zambia Infrastructure/Public
Grant/Donation
sports stadium
$65 m
Works
Source: various international news reports


Table A-2. Selected PRC Aid and Investment Projects in 2008 (Announced or
Begun): Latin America

Value in $US
Type of Assistance
(b = billion
Country
or Investment
Funding Source
Description
m = million)
Brazil Infrastructure/Public
Govt-Sponsored
power plant
$850 m
Works
Investment
Brazil
Natural Resources
Concessional Loan
oil exploration
$10 b
Chile Infrastructure/Public
Concessional Loan
ports, shipping,
$100 m
Works; Natural
(joint credit lines)
mining
Resources
Costa Rica
Infrastructure/Public Grant/Donation
stadium, oil refinery
$130 m
Works; Natural
Resources
Cuba
Humanitarian
Concessional Loan
hurricane relief –
$70 m
repair of hospitals
Grenada Infrastructure/Public
Concessional Loan
tourist marina
$83 m
Works
Venezuela Infrastructure/Public
Concessional Loan
infrastructure,
$4 b (to be paid back
Works;
electricity, health,
in oil)
Development;
and education
Natural Resources
Source: various international news reports

˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
ŘŖȱ

‘’—ŠȂœȱ˜›Ž’—ȱ’ȱŒ’Ÿ’’Žœȱ’—ȱ›’ŒŠǰȱŠ’—ȱ–Ž›’ŒŠǰȱŠ—ȱ˜ž‘ŽŠœȱœ’Šȱ
ȱ
Table A-3. Selected PRC Aid and Investment Projects in 2008 (Announced or
Begun): Southeast Asia
Value in $US
Type of Assistance
(b = billion
Country
or Investment
Funding Source
Description
m = million)
Cambodia
Infrastructure/Public Grant; Concessional road construction
$ 215 m
Works
Loan
Laos/Thailand Infrastructure/Public
Govt-Sponsored
construction of
$3 b
Works
Investment
China-Laos-Thailand
railroad
Myanmar (Burma) Natural Resources
Govt-Sponsored
nickel mining
not specified (profit
Investment
sharing arrangement)
Myanmar (Burma) Natural Resources
Govt-Sponsored
2 oil and gas
$350 m
Investment
pipelines
Indonesia Infrastructure/Public
Concessional Loan
power plants
$615 m
Works
Source: various international news reports

ž‘˜›ȱ˜—ŠŒȱ —˜›–Š’˜—ȱ

Thomas Lum
Julissa Gomez-Granger
Specialist in Asian Affairs
Information Research Specialist
tlum@crs.loc.gov, 7-7616
jgomezgranger@crs.loc.gov, 7-8981
Hannah Fischer
Anne Leland
Information Research Specialist
Information Research Specialist
hfischer@crs.loc.gov, 7-8989
aleland@crs.loc.gov, 7-4704




˜—›Žœœ’˜—Š•ȱŽœŽŠ›Œ‘ȱŽ›Ÿ’ŒŽȱ
Řŗȱ