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China’s Diplomatic Ties, Strategic Interests and Development Aid Allocation

Sun, Wenbo (2025) COSM40 20251
Centre for East and South-East Asian Studies, Lund University
Abstract
In the past decade, development aid has played an increasingly important role in China’s global strategy. As China pursues more assertive foreign policies through initiatives like the Belt and Road Initiative (BRI) and the expansion of Comprehensive Strategic Partnership (CSP), its interpretations of diplomatic relations are distinctive from the traditional frameworks shaped by western countries. This study examines how diplomatic ties affect the allocation of Chinese development aid from 2013 to 2019. The results show that stronger diplomatic ties generally lead to higher levels of aid, but this relationship is also mediated by China’s strategic interests in recipient countries. Countries rich in natural resources tend to receive more... (More)
In the past decade, development aid has played an increasingly important role in China’s global strategy. As China pursues more assertive foreign policies through initiatives like the Belt and Road Initiative (BRI) and the expansion of Comprehensive Strategic Partnership (CSP), its interpretations of diplomatic relations are distinctive from the traditional frameworks shaped by western countries. This study examines how diplomatic ties affect the allocation of Chinese development aid from 2013 to 2019. The results show that stronger diplomatic ties generally lead to higher levels of aid, but this relationship is also mediated by China’s strategic interests in recipient countries. Countries rich in natural resources tend to receive more Chinese aid regardless of diplomatic closeness, but their development aid also receive substitution effect from commercial investment as they develop diplomatic ties with China. Small-sized countries tend to receive more aid in exchange for political support, but strengthening diplomatic ties with China does not lead to further increased aid flows, as they are not regarded as long-term strategic partners requiring continuous investment. For major countries and countries sharing borders with China, diplomatic ties are crucial, as Chinese aid increases significantly only when they have strong diplomatic ties. (Less)
Please use this url to cite or link to this publication:
author
Sun, Wenbo
supervisor
organization
course
COSM40 20251
year
type
H2 - Master's Degree (Two Years)
subject
keywords
China, Development Aid, Belt and Road Initiative, Strategic Partnership, Strategic Interest, Diplomatic Ties
language
English
id
9210421
date added to LUP
2025-08-21 10:27:05
date last changed
2025-08-21 10:27:05
@misc{9210421,
  abstract     = {{In the past decade, development aid has played an increasingly important role in China’s global strategy. As China pursues more assertive foreign policies through initiatives like the Belt and Road Initiative (BRI) and the expansion of Comprehensive Strategic Partnership (CSP), its interpretations of diplomatic relations are distinctive from the traditional frameworks shaped by western countries. This study examines how diplomatic ties affect the allocation of Chinese development aid from 2013 to 2019. The results show that stronger diplomatic ties generally lead to higher levels of aid, but this relationship is also mediated by China’s strategic interests in recipient countries. Countries rich in natural resources tend to receive more Chinese aid regardless of diplomatic closeness, but their development aid also receive substitution effect from commercial investment as they develop diplomatic ties with China. Small-sized countries tend to receive more aid in exchange for political support, but strengthening diplomatic ties with China does not lead to further increased aid flows, as they are not regarded as long-term strategic partners requiring continuous investment. For major countries and countries sharing borders with China, diplomatic ties are crucial, as Chinese aid increases significantly only when they have strong diplomatic ties.}},
  author       = {{Sun, Wenbo}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{China’s Diplomatic Ties, Strategic Interests and Development Aid Allocation}},
  year         = {{2025}},
}