Columbia International Affairs Online: Policy Briefs

CIAO DATE: 11/2009

China: stumbling through the Pacific

Fergus Hanson

July 2009

Lowy Institute for International Policy

Abstract

A new Policy Brief on China's aid program in the Pacific provides the most detailed picture yet of China's approach to aid-giving in the region. It suggests China is mired in a vicious cycle of short-termism that is a legacy of its long-running diplomatic battle with Taiwan. Its aid-giving is unpredictable, secretive and takes no account of recurring costs or debt burdening. The recent diplomatic truce between China and Taiwan offers China a chance to refocus its program towards longer-term development goals that also better serve Chinese national interests.