Over the past decade, China’s role as a global actor has captured the public eye. If asked to describe China’s foreign policy, for most people, a selection of key buzzwords likely come to mind: the “Belt and Road Initiative” (BRI), competition with the United States (the “Second Cold War”), military activity in the South China Sea, or perhaps “debt-trap diplomacy”. More recently, China’s slowing economy, industrial overcapacity and leading EV production have also grabbed headlines.
However, one aspect of China’s foreign policy much less likely to appear on such a list is China’s role as a global development or foreign aid actor. And where this question does emerge, it often remains subsumed within discussions of competition, suspicion or geopolitics.
This is not surprising. China’s “development model” – including its finance mechanisms, policies, modes, programs or frameworks – has been largely understood as challenging the liberal development orthodoxy. Scaffolded by institutions such as the International Monetary Fund, the Organisation for Economic Cooperation and Development, the United Nations and World Bank, and liberal policy prescriptions such as the 1989 Washington Consensus, the liberal development model has dominated the global governance and international development landscape since 1945.
While the question over whether “development models” truly exist beyond abstraction remains its own lively debate, scholars and policymakers alike have outlined several differences between the Chinese and dominant approaches to international development.
The lines are more blurred between China’s commercial investment and its aid/development policies than in traditional definitions of Official Development Assistance (ODA) used by OECD countries. China also puts an emphasis on state-led, infrastructure-focused policies and rejected the liberal economic prescriptions of the Washington Consensus in the 1980s and 1990s. Non-interference is favoured over conditionality. China's rise has also emerged as part of the “rise of the South”. This includes a group of countries that were traditionally recipients of aid, including China, Brazil and India, that have since moved from “recipient to donor” as their economies expand and dependency on external aid has reduced. These countries often work together through “South-South Development Cooperation”.