China's Foreign Aid

III. Promoting Economic and Social Development

China has actively helped other developing countries in infrastructure construction, and assisted their efforts in strengthening capacity building and trade development. China has also increased the amount of foreign assistance in environmental protection, helping the recipient countries realize economic and social development.

1. Improving Infrastructure

In light of the economic development of different countries, China arranges grants (aid gratis), interest-free loans and concessional loans in a well-proportioned manner to help recipient countries with the much needed infrastructure construction. From 2010 to 2012, China helped build 156 economic infrastructure projects. Exploring its advantages in technology, equipment and materials, and human resources, China effectively cut down investment costs for these projects while ensuring quality.

Supporting development of transport system. During the three-year period, China assisted the construction of over 70 transport projects, including roads, bridges, airports and ports. For example, China helped build the third section of the Sika Highway that connects Kenya's capital Nairobi to its economic hub Sika, thus making a contribution to the road network that links up Kenya, Ethiopia and Tanzania. Sri Lanka's Mattala Rajapaksa International Airport, built with Chinese assistance, further improves the country's all-dimensional transport network, and plays a positive role in promoting links and communication between Sri Lanka and its neighboring areas.

Increasing energy supply capacity. China assisted the construction of more than 20 energy projects, including hydropower stations, thermal power plants, power transmission, transformation and distribution grids, and geothermal drilling projects. The Bui Hydropower Station built by China in Ghana boasts the capacity of hydroelectricity generation, farmland irrigation, fisheries development and local tourism. Its completion has not only powered economic and social development in Ghana, but also benefited other areas in Western Africa. The China-assisted power transmission, transformation and distribution grids in Dakar, Senegal now provide power to 150,000 local residents, effectively ensuring power supply to the city, which had been troubled by its ageing grid and sudden blackouts until recently.

Promoting the development of information-based societies. China assisted the building of over 60 IT-related projects, including optical cable telecommunication networks, e-government websites, and radio and television frequency modulation transmitters. The telecommunication projects assisted by China in Turkmenistan, Togo and Eritrea provide high-quality and steady telecommunication systems to these countries, and the number of users has grown exponentially. The optical cable transmission networks assisted by China in Cameroon and Tanzania have effectively promoted the application of fiber cables in African nations.

2. Strengthening Capacity Building

Believing in the ancient Chinese wisdom that "teaching one to fish rather than giving one fish," China shares its experience and technology with other developing countries through human resources and technical cooperation, as well as through volunteer service, to help other developing countries build their own professional teams and enhance their capacity for independent development.

Fast development in human resources cooperation. From 2010 to 2012, China held 1,579 seminars for foreign officials, inviting nearly 40,000 officials from the governments of other developing countries to China. The topics of the seminars covered economics and management, multilateral trade negotiation, politics and diplomacy, public administration, vocational education, and non-governmental organizations. China also held 357 training sessions for about 10,000 technical personnel from other developing countries in the areas of agriculture, health care, telecommunications, industry, environmental protection, disaster relief and prevention, and culture and sports. To help other developing countries improve the ability of their senior management personnel in the public sector, China organized, during the three years, 15 on-the-job academic education programs. Master's degrees in public administration, education, international relations and international media were granted to 359 officials from 75 developing countries.

Extensive technical cooperation. During the three-year period, China sent over 2,000 experts to more than 50 countries to conduct technical cooperation, transfer applicable technique, and help improve these countries' technical management capacity in agriculture, handcrafts, radio and television, clean energy, and culture and sports. China also dispatched senior planning and consulting experts to other developing countries to help with the planning of land exploitation, clean energy utilization, river regulation, and economic cooperation. In a technical cooperation program, Chinese experts taught 500 Liberians to weave bamboo and rattan into marketable products. This program has not only created jobs, brought the locals more income and lifted them out of poverty, but also boosted the bamboo and rattan industry in the country.

The active role of volunteers. China continued to send volunteers to other developing countries to provide services in language teaching, physical education, computer training, traditional Chinese medicine treatment, agricultural technology, art training, industrial technology, social development and international relief for schools, hospitals, government agencies, farms, and research institutes. A Chinese volunteer to Liberia successfully rescued a newborn with gastroschisis, and was awarded the African Star medal. Volunteers to Ethiopia improved the planting method for melons, and local fruit farmers harvested much more than usual that year; the volunteers also taught the locals to build biogas pits so that they could use clean energy more efficiently.

3. Promoting Trade Development

As an active response to the WTO's Aid for Trade initiative, China strengthened its assistance in infrastructure construction and production capacity building for other developing countries. China also stepped up zero tariff treatment to these countries, supported their involvement in the multilateral trading system, and provided training for their economic and trade professionals so as to promote the trade development of these countries.

Improving trade-related infrastructure. During the three-year period, China assisted the construction of 90 large and medium-sized, trade-related infrastructure projects, effectively improving transportation for foreign trade in the recipient countries and reinforcing their connectivity with other areas. China also provided commodity inspection equipment, transport vehicles and other trade-related supplies and equipment to other developing countries. For example, it provided container inspection equipment to Cambodia, Laos, Myanmar, Ethiopia, Egypt, Chad, Cape Verde, Zambia and Serbia, which has helped these countries improve their commodity inspection capacity and customs clearance ability, as well as effectively combat against smuggling.

Improving trade-related production capacity. China assisted the construction of a number of trade-related production programs, which have helped improve to a certain degree the production capacity of the recipient countries, so that they can better meet the needs of the market and improve the import-export mix. In December 2011, during the eighth ministerial conference of the WTO, China reached agreement with Benin, Mali, Chad and Burkina Faso -- the Cotton-4 countries -- on a cooperation program in which China provides cotton seeds, farm machinery and fertilizers, shares planting technologies, provides training, and supports local companies for technological upgrading and the expansion of industrial chain, so as to promote the development of the four countries' cotton industries and foreign trade.

Promoting export to China. In an effort to effectively boost export to China from other developing countries, in 2005 China decided to offer zero tariff treatment on taxable items in 190 categories to 25 least developed countries in Africa, and further expanded the scope of the treatment in the following years. In November 2011, then Chinese President Hu Jintao announced that China would offer zero tariff treatment to 97 percent of the taxable items from the least developed countries that had established diplomatic relations with China. By the end of 2012, commodities in nearly 5,000 taxable categories exported to China from the least developed countries were enjoying zero tariff treatment. Since 2008, China has been the largest export market of the least developed countries for five consecutive years, buying 23 percent of these countries' exported commodities.

Supporting the least developed countries in joining the multilateral trading system. China is an active participator of the WTO's Aid for Trade initiative. From 2008 to 2010, China made annual donation of 200,000 U.S. dollars to the program, and has increased the sum to 400,000 U.S. dollars since 2011. The donations are used to set up the China Program for Assisting the Least Developed Countries' Accession to the WTO, hold related seminars on accession to the WTO for these countries, finance their personnel to attend important WTO meetings and do internship at the organization's Secretariat. From 2010 to 2012, China held 18 seminars on promoting trade facilitation and WTO accession, sharing its experience with over 400 government officials from other developing countries.

4. Strengthening Environmental Protection

At the UN conferences on climate change held in Cancun, Durban and Doha, China shared its experience in energy conservation and emission reduction, and also pledged to increase assistance in the environment sector to the least developed countries, small island countries and African countries, in a move to help them develop clean energy and improve their capacity in addressing climate change.

Assisting construction projects. China actively cooperates with other developing countries in the areas of clean energy, environmental protection, flood control and draught relief, water resources management, sustainable development of forestry, water and soil conservation, and meteorological information service. In the three years, China undertook 64 projects in 58 developing countries on the utilization of renewable energy resources, such as solar streetlamps and solar power generators.

Providing materials. From 2010 to 2012, China provided a total of 16 batches of equipment and supplies for environmental protection to 13 developing countries, such as Cambodia, Myanmar, Ethiopia, South Sudan and the Federated States of Micronesia, and the supplies included wind and solar power generators and lighting equipment, portable solar power supply, biogas equipment, garbage collection trucks, and draining and irrigation equipment. Meanwhile, China proactively promoted South-South cooperation on addressing climate change, and signed the Memorandum of Understanding on Complimentary Supplies for Addressing Climate Change with nine countries: Grenada, Ethiopia, Madagascar, Nigeria, Benin, Maldives, Cameroon, Burundi and Samoa. Under the framework, China donated more than 500,000 energy-efficient lamps and 10,000 energy-efficient air conditioners to these countries.

Providing assistance in capacity building. During the three years, China carried out technical cooperation with countries like Ethiopia, Burundi and Sudan, and helped these countries improve their utilization and management of solar power, hydro power and other clean energy. China also organized 150 training sessions on environmental protection and addressing climate change for over 120 developing countries, providing training to over 4,000 officials and technical personnel in such areas as low-carbon industry development and energy policies, ecological protection, water resources management and water and soil conservation, renewable energy exploitation and utilization, forestry management and desertification prevention and control, and early warning of meteorological disasters.

IV. Foreign Assistance under Regional Cooperation Mechanism

China lays great emphasis on strengthening group consultation with recipient countries through regional cooperation mechanisms and platforms, such as Forum on China-Africa Cooperation (FOCAC) and China-ASEAN Summit, and has, on more than one occasion, announced assistance packages in response to the development needs of various regions.

1. Promoting a New China-Africa Strategic Partnership

Africa is home to the largest number of developing countries. Since the establishment of FOCAC in 2000, China has actively developed its cooperation with African countries under the framework of the Forum, gradually expanded assistance to the region, and effectively promoted the comprehensive development of its relations with Africa.

Giving priority to agricultural development. China has all along paid great attention to its agricultural cooperation with Africa. From 2010 to 2012, China established 14 agricultural technology demonstration centers, and launched the planning or construction of another eight centers. China also sent a large number of agricultural experts to Africa to carry out technical cooperation, and trained for African countries over 5,000 agricultural technicians. In July 2012, at the Fifth Ministerial Meeting of the FOCAC, the Chinese government promised to provide assistance in building more agricultural technology demonstration centers in Africa, strengthen technical training, demonstration and popularization, and help African countries improve their ability in food production, processing, storage and marketing.

Giving support to infrastructure construction and integrated development. Infrastructure has always been the focus of China's assistance to Africa. The Tanzania-Zambia Railway is a landmark project in China's early assistance for cross-border infrastructure construction in Africa. After its completion, China continuously carried out technical cooperation to provide help in the operation and management of the railway. From 2010 to 2012, China built in Africa 86 economic infrastructure projects. In 2012, China announced the establishment of trans-national and trans-regional infrastructure construction cooperation partnership with African countries, rendering support in project planning and feasibility study, and encouraging the participation of capable Chinese enterprises and financial institutions in project construction. China provided active support to Africa in the process to build their own strength through unity and integration, assisted the construction of the African Union Conference Center and Office Complex, and stood up for New Partnership for African Development, helping Africa enhance capacity building.

Promoting medical and health care cooperation. China has long been committed to helping African countries improve their medical and health care conditions. Currently, there are 43 China's medical teams in 42 African countries. China assisted the construction of 30 hospitals and 30 malaria prevention and control centers, provided 800 million yuan worth of medical equipment and supplies and anti-malaria drugs, and trained over 3,000 medical staff for African countries. China-assisted Tappita Hospital in Liberia, boasting complete and advanced medical equipment, is jointly operated by China, Egypt and Liberia, which is a meaningful step towards its sustainable operation.

Capacity building. During the three years, China built 150 primary and secondary schools in Africa, and trained a total of 47,000 people of various professions. In 2012, China announced its African Talents Program: to train 30,000 personnel in various sectors for Africa in three years and offer 18,000 government scholarships. In that year alone, China offered 6,717 government scholarships to African countries.

Coping with climate change. China actively helped African countries improve their ability to cope with climate change, and strengthened cooperation with them in meteorological satellite monitoring, new energy development and utilization, desertification prevention and control, and urban environmental protection. A number of the 105 clean energy and water supply projects assisted by China have been under construction or put into operation. In 2012, China started to build for African countries automatic meteorological stations and high-altitude observation radar stations, provide them with forest protection equipment and carry out personnel training and exchange, in an effort to support Africa to strengthen its capacity in ecological conservation and response to challenges imposed by climate change.

2. Promoting Practical Cooperation with ASEAN

Since China and ASEAN announced the establishment of strategic partnership in 2003, China has conducted active cooperation with ASEAN countries in all fields, focusing on providing economic and technical assistance to low-income ASEAN countries to help the ASEAN narrow internal development gaps.

Supporting multi-level regional cooperation. China has provided funding through multiple channels to support ASEAN in playing its leading role in regional cooperation. From 2010 to 2012, China successively announced assistance measures at China-ASEAN Summits, with particular emphasis on assistance in infrastructure construction. China has assisted the construction of a large number of industrial and agricultural production and infrastructure projects, which have played a boosting role in the economic development of ASEAN countries.

Promoting comprehensive development of agriculture. Since 2010, China has constantly stepped up its efforts in implementing the China-ASEAN Action Plan on Comprehensive Food Productivity Enhancement. It worked with ASEAN countries in setting up 20 experimental stations of improved crop varieties, with the demonstration areas totaling one million hectares. In addition, China built three agricultural technology demonstration centers in ASEAN countries and dispatched 300 agricultural experts and technicians to provide technical guidance. China also worked with neighboring ASEAN countries to set up cross-border monitoring stations for animal and plant disease prevention and control and established a cross-border epidemic joint-prevention and joint-control system.

Boosting capacity building. During the three years, China trained for ASEAN countries over 5,000 officials and technicians in such fields as business conferences and exhibitions, culture and arts, Chinese language, finance and taxation, traditional medicine, control and treatment of infectious diseases, new energy, as well as agriculture.

3. Supporting the Economic and Social Development of Other Regions

Targeting to common development, China made use of such platforms as Forum for Economic and Trade Cooperation between China and the Portuguese-speaking Countries (Macau), China-Caribbean Economic and Trade Cooperation Forum, China-Pacific Island Countries Economic Development and Cooperation Forum, China-Arab States Cooperation Forum, and the Shanghai Cooperation Organization to carry out cooperation with developing countries in regions concerned.

Helping Asian and African Portuguese-speaking countries improve livelihood. Since the establishment of the Forum for Economic and Trade Cooperation between China and the Portuguese-speaking Countries (Macau) in 2003, China has conducted assistance cooperation with Portuguese-speaking developing countries, including Angola, Cape Verde, Guinea-Bissau, Mozambique and East Timor, in the fields like culture, education, health, capacity building and agriculture. From 2010 to 2012, China offered 1.6 billion yuan of concessional loans to the above five countries, and trained over 2,000 personnel for them. In 2011, a training center under the Forum was established in Macau, and it has since hosted over 10 workshops.

Enhancing practical cooperation with the Caribbean countries. China has been actively implementing the assistance measures it announced at the Third China-Caribbean Economic and Trade Cooperation Forum held in 2011. By the end of 2012, under the framework of the Third China-Caribbean Economic and Trade Cooperation Forum, China had provided the Caribbean countries with concessional loans totaling 3 billion yuan mainly for the construction of infrastructure projects. In the meantime, China trained over 500 officials and technical staff for the Caribbean countries, and held training courses for these countries in the establishment of earthquake and tsunami early warning and monitoring system. China also built schools for Antigua and Barbuda and Dominica, dispatched to Dominica medical teams and trained local medical staff, and carried out technical cooperation in agriculture and fishery with Dominica, Grenada and Cuba.

Supporting sustainable economic development of Pacific island countries. China lays emphasis on developing friendly cooperation with Pacific island countries and supports the Pacific Plan they initiated to boost regional cooperation. Since the first ministerial meeting of China-Pacific Island Countries Economic Development and Cooperation Forum in 2006, China has trained for these countries over 2,500 officials and technicians, and conducted technical cooperation in agriculture and fishery with Fiji, Papua New Guinea, Samoa, Tonga and the Federated States of Micronesia. China helped Papua New Guinea with malaria prevention and control, dispatched medical teams to Samoa, Vanuatu, the Federated States of Micronesia, Tonga and Papua New Guinea, and held training courses for health officials, hospital administrators and pharmaceutical researchers of Pacific island countries.

V. Participation in International Exchanges and Cooperation

With enhanced ability of participating in global affairs, China has within its capacity rendered support to the assistance programs initiated by multilateral development organizations, and has exchanged experience and explored practical cooperation in an increasingly open-minded manner.

1. Supporting Development Assistance Programs of Multilateral Organizations

In recent years, the United Nations and other multilateral organizations have been playing a prominent role in development assistance, particularly in promoting development financing, achieving the Millennium Development Goals and tackling global development issues. China has rendered support to and took part in the development assistance programs sponsored by the multilateral organizations by ways of voluntary donations, equity financing, etc.

Participating in assistance programs initiated by multilateral organizations. From 2010 to 2012, China contributed in accumulation 1.76 billion yuan to the United Nations Development Programme (UNDP), the United Nations Industrial Development Organization (UNIDO), the United Nations Fund for Population Activities (UNFPA), the United Nations Children's Fund (UNICEF), the United Nations World Food Programme (WFP), the Food and Agriculture Organization of the United Nations (FAO), the United Nations Educational, Scientific, and Cultural Organization (UNESCO), the World Bank, the International Monetary Fund (IMF), the World Health Organization (WHO) and the Global Fund to Fight AIDS, Tuberculosis and Malaria, to support other developing countries in poverty reduction, food security, trade development, crisis prevention and reconstruction, population development, maternal and child health care, disease prevention and control, education and environmental protection. In the three years, China, through the FAO, dispatched 235 experts to Mongolia, Nigeria, Uganda and six other countries to provide technical guidance to improve local agricultural production. From 2011 to 2012, China worked closely with the WHO and dispatched 15 experts to Namibia, Nigeria, Ethiopia and Pakistan to help control the spread of poliomyelitis. In 2012, China set up an educational trust fund under UNESCO to provide teacher training for eight African countries.

Supporting development financing of regional financial institutions. China strengthened cooperation with regional financial institutions such as the Asian Development Bank, the African Development Bank, the Inter-American Development Bank, the West African Development Bank and the Caribbean Development Bank to channel more capital into the fields of infrastructure, environmental protection, education and health care in developing countries. By 2012, China had donated a total of 1.3 billion U.S. dollars to these regional financial institutions. Apart from China's investment of 20 million U.S. dollars to establish the Poverty Reduction and Regional Cooperation Fund in the Asian Development Bank in 2005, in 2012 China donated another 20 million U.S. dollars to this Fund to help with the poverty reduction and development of developing countries. By the end of 2012, China had contributed in total 110 million U.S. dollars to the Asian Development Fund of the Asian Development Bank. Furthermore, China supported capacity building of these financial institutions through technical cooperation funds set up in the African Development Bank, the West African Development Bank and the Caribbean Development Bank.

2. Participating in International Exchanges for Development Cooperation

China actively participated in international exchanges for development cooperation, enhanced dialogue with other countries and international organizations and shared experience in relation to development cooperation. Actively participating in research and discussion on global development issues. During the three years, China actively elaborated its principles, positions, and policies at a series of international conferences, including the UN High-Level Meeting on the Millennium Development Goals, UN Conference on Sustainable Development, UN Development Cooperation Forum, UN Conference on the Least Developed Countries, High-Level UN Conference on South-South Cooperation, G20 Summit, WTO's Aid for Trade Global Review, and High-Level Forum on Aid Effectiveness.

Conducting exchanges and dialogue on development cooperation with other countries and organizations. China enhanced dialogue and communication on development assistance with other countries and multilateral organizations to boost mutual trust and mutual learning in an open-minded manner. China held seminars on development assistance and conducted exchanges with the UK, Australia, Switzerland and the Organization for Economic Cooperation and Development (OECD).

3. Conducting International Cooperation in Foreign Assistance

In order to effectively learn international experience, improve assistance efficiency and enrich assistance forms, China intensified efforts to promote international cooperation in development assistance, and conducted trilateral cooperation featuring complementary advantage with multilateral and bilateral assistance providers by leveraging each party's strengths on the premise of fully respecting the will of recipient countries.

Jointly holding training programs. China continued to carry out cooperation on training programs targeted at other developing countries with the UNDP, the UNICEF, the FAO, the UNIDO, the United Nations Office for the Coordination of the Humanitarian Affairs (OCHA), the Common Fund for Commodities (CFC), the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS), the World Bank, and the IMF. From 2010 to 2012, together with the above-mentioned organizations, China held about 50 training sessions of themes such as agriculture, trade development, disaster prevention and relief, finance, industrial development and social and public management.

Sharing experience on development cooperation. China and the World Bank jointly held workshops on international development cooperation featuring capacity development and infrastructure construction, and invited government officials from developing countries to share experience in the field. In October 2011, China and the UNESCO held the China-Africa University President Forum, at which China and Africa held discussions on the prospect of cooperation between Chinese and African universities. China held workshops, for five consecutive years, on South-South cooperation with the International Fund for Agricultural Development to share experience in agricultural development and poverty reduction in rural areas. China and the Asian Development Bank held sessions for five consecutive years on city development in the Asian-Pacific region and development of small and medium enterprises (SMEs).

Piloting trilateral cooperation. China, the UNDP and Cambodia launched the cooperation project of enlarging cassava export on the basis of the successful training course of cassava planting technique. In March 2012, the UNESCO's Funds-in-Trust for China-Africa Multilateral Education Cooperation funded by China was launched to increase investment in basic education in Africa. At the request of the government of the Cook Islands, in August 2012 China, New Zealand and Cook Islands reached an agreement on a water supply project in Cook Islands. Once completed, it will provide safe and clean drinking water to local people.

Conclusion

Today, the impact of the global financial crisis still exists, and developing countries, especially the least developed ones, are still confronted with the tough task of poverty reduction and development. The international community should mobilize more development resources to strengthen South-North cooperation, support South-South cooperation and promote economic and social development of developing countries to eliminate poverty worldwide.

China is endeavoring to build a moderately prosperous society in an all-round way and stays committed to realizing the Chinese Dream of national prosperity and renewal, and happiness of the people. China will follow the trend of the times, which is peace, development, cooperation and win-win result, keep to the righteous viewpoint on justice and interests, respect and support developing countries' exploration of development paths suited to their own national conditions, actively promote South-South cooperation and make concrete efforts to help other developing countries promote social and economic development.

China will continue to increase the input in foreign assistance, further optimize assistance structure, highlight key aspects, innovate assistance means, raise the efficiency of capital utilization, effectively help recipient countries improve their people's well-being and enhance their capability of independent development. China is willing to work with the international community to share opportunities, meet challenges, strive to realize the world's dream of lasting peace and common prosperity, and make greater contribution to the development of mankind.