Up-and-Coming Chinese Aid: Local Affinity in the Shadow of Western Donor

• In Event: China and Global Public Opinion

Abstract

China spends billions of dollars on aid, but can its money buy influence among citizens from recipient countries? China’s intentions and actions often encounter criticism and suspicion from the international community. I investigate the extent to which Chinese aid in recipient countries compares to the more established World Bank aid, and I also examine the public’s perceptions of these two donors. To conduct this study, I combine geo-coded data from Afrobarometers and AidData, matching local projects and the public living near project sites from both donors. By comparing the perceptions of individuals who have direct exposure to both Chinese and World Bank aid with those who were initially exposed only to Chinese aid during the interview but later witnessed the first implementation of Chinese aid, I can control for time-invariant characteristics that influence China’s selection of project sites. In contrast to the common perception of unwelcoming Chinese aid, I demonstrate that Chinese aid has garnered appreciation among the locals in recipient countries, particularly when they co-exist with traditional World Bank aid projects and in areas where Chinese aid demonstrates a specialization. Chinese aid projects often prioritize infrastructure development and natural resources sectors, which can significantly and immediately impact the lives of the locals. Improved transportation networks, access to clean water, energy infrastructure, and other essential facilities are tangible benefits that the local communities can appreciate. While Chinese aid may be perceived as predatory, African citizens hold a positive view of China’s influence, especially when they reside in areas with clusters of Chinese-funded natural resource projects. I join the current literature on the local implications of Chinese foreign aid. In certain contexts and specialized areas, Chinese aid has been welcomed and appreciated by the locals in recipient countries.

Author

• Lucie Lu, Princeton University