Term Paper: China’s Aid is Low Interest Loans

By | October 6, 2012

China’s foreign aid is mainly comprised of low or concessional interest loans, subsidized and government backed natural resources and infrastructure, and ODA, Official Development Aid. ODA includes food aid, social welfare programs, humanitarian assistance, and development grants.

China’s aid fits the definition given by ODA that  is should be “flows of official financing to developing countries provided by official agencies which have a clear development or anti-poverty purpose and are at least partially concessional in nature,” with a grant element of at least 25%” (Lum et al, 2009, p. 17).

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