China’s Foreign Aid and Investment Diplomacy, Volume I: Nature, Scope, and Origins

291 Pages·2016·3.32 MB·English

by  John F. Copper (auth.)

China’s Foreign Aid and Investment
Diplomacy, Volume I

China’s Foreign Aid and
Investment Diplomacy,
Volume I
Nature, Scope, and Origins
John F. Copper
CHINA’S FOREIGN AID AND INVESTMENT DIPLOMACY, VOLUME I
Copyright © John F. Copper 2016
Softcover reprint of the hardcover 1st edition 2016 978-1-137-55181-8
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ISBN: 978-1-349-55591-8
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DOI: 10.1057/9781137532732
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Library of Congress Cataloging-in-Publication Data
Names: Copper, John Franklin.
Title: China’s foreign aid and investment diplomacy / John F. Copper.
Description: New York City : Palgrave Macmillan, 2015– | Includes
bibliographical references and index.
Identifiers: LCCN 2015020279
ISBN 9781137551825 (v. 2 : hardback) | ISBN 9781137551832
(v. 3 : hardback)
Subjects: LCSH: Economic assistance, Chinese—Developing countries. |
Investments, Chinese—Developing countries. | BISAC: POLITICAL
SCIENCE / History & Theory. | POLITICAL SCIENCE / International
Relations / General. | POLITICAL SCIENCE / International Relations /
Diplomacy. | POLITICAL SCIENCE / Public Policy / Economic Policy. |
POLITICAL SCIENCE / Government / General.
Classification: LCC HC60 .C66525 2015 | DDC 33.91/5101724—dc23 LC
record available at http://lccn.loc.gov/2015020279

A catalogue record for the book is available from the British Library.
To my beloved son Royce Wellington Copper,
to whom I entrust the future

Contents
Preface ix
Preface to Volume I xi
Chapter 1 Introduction: The Nature and Scope of China’s
Foreign Aid and Investment Diplomacy 1
Chapter 2 China’s Worldview and Its Foreign Aid and Investment
Diplomacy 43
Chapter 3 China’s Economy and Its Foreign Aid and Investment
Diplomacy 83
Chapter 4 China’s Foreign Policy Goals and Its Foreign Aid and
Investment Diplomacy 123
Notes 169
Selected Bibliography for Volume I 251
Index 265

Preface
The People’s Republic of China began giving foreign aid as soon as
its government was established in 1949. China helped finance two
wars. They were the wars that had the greatest impact of any in the
post–World War II period: the Korean War and the Vietnam War. China
also financed wars of national liberation in a host of Third World countries.
Meanwhile foreign aid helped Beijing negotiate establishing diplomatic ties
with a number of developing countries and win support for important tenets
of its foreign policy.
To some, China became a model for aid giving: a poor country that gener-
ously helped other poor countries and a country that gave assistance expedi-
tiously, efficiently, and without conditions. Some observers said that China
made it necessary to reexamine the meaning of the term “foreign aid.”
In the 1970s and 1980s, notwithstanding impressive successes in its for-
eign aid diplomacy, Chinese leaders noted that China’s aid program had
experienced serious setbacks; more important, they felt China needed capital
for its own economic development. China thus became a major recipient of
financial aid from international lending institutions while it attracted large
amounts of investment money from Western countries and from Overseas
Chinese. Giving foreign assistance in this context did not make much sense
and China drastically reduced its aid giving.
But China’s economy soon boomed, and in the 1990s after it began to
accumulate large stores of foreign exchange, Chinese leaders resurrected
China’s foreign aid giving and increased it several fold while labeling it on
many occasions foreign investments. Investments served many of the same
purposes as aid and sounded better. In any event, China “transferred” large
amounts of its newly acquired foreign exchange to poor countries. This pro-
vided succor for their development. It also expanded China’s external influ-
ence. Not by accident China’s external financial help became a major factor
in its global rise.