I. Basic situation of China's foreign aid
China's foreign aid began in 1950. By the end of 2003, the number of countries receiving Chinese aid had reached 146. Over the past 50 years, China has helped other developing countries to build 1,740 projects in a variety of fields such as agriculture, water conservancy, textile, paper making and chemical industry, and has sent out a total of about 550,000 foreign aid engineers and technicians.
In addition to the above complete sets of project assistance, China has also provided a large amount of material assistance and various kinds of technical assistance to the vast number of developing countries under the aid fund. Since 1983, China has provided technical assistance to more than 100 countries and more than 10 international and regional organizations. *** More than 264 technical training courses of various kinds have been organized, training more than 6,500 technicians in dozens of specialties, including agriculture, animal husbandry, fisheries, small hydropower, machinery, energy, health care, environmental protection, meteorology, desert management and food processing. In addition, from 1998 to the end of 2003, the Chinese Government also organized 35 training courses for economic management officials from developing countries, in which 751 economic management officials from 106 countries participated.
The main ways in which China provides assistance to foreign countries
There are three main ways: free aid, interest-free loans, and preferential loans.
1. Non-reimbursable aid
Non-reimbursable aid is mainly used to help recipient countries build small and medium-sized social welfare projects, such as hospitals, schools, low-cost housing, and drilling wells for water supply. In addition, non-reimbursable aid is also used to provide material assistance, humanitarian emergency disaster relief assistance and human resources training.
2. Interest-free loan mode
Interest-free loans are mainly used to help recipient countries build some infrastructure and civil facilities projects. Over the past 50 years, China has helped developing countries build a large number of public *** civil facilities. In the future, in order to meet the urgent needs of recipient countries, the Chinese Government will also reserve an appropriate proportion of interest-free loans for helping recipient countries to build such projects.
3. Preferential Loans
Preferential loans are medium- and long-term low-interest loans provided by financial institutions designated by the Chinese government to foreign countries with the nature of government assistance. The interest difference between the preferential interest rate and the benchmark interest rate announced by the People's Bank of China is subsidized by the Chinese government.
The preferential loans are mainly used for joint ventures between Chinese enterprises and enterprises of the recipient countries to build and operate productive projects that are needed locally and economically efficient, or to provide complete sets of equipment and electromechanical products produced in China.
Chinese joint ventures with recipient countries, recipient country enterprises or Chinese enterprises agreed by recipient countries can apply for the use of preferential loans, but the project must be assessed by the Export-Import Bank of China and the lending institutions of recipient countries as feasible before lending. Concessionary loans are loans of an assistance nature and are therefore mainly provided to developing countries with economic difficulties.
In addition to the above three major forms of foreign aid, the Chinese government has also set up a special investment fund and an African human resources development fund for African countries. The former is used to support and encourage strong and reputable Chinese enterprises to invest in African countries and carry out mutually beneficial cooperation; the latter is used to help African countries train various kinds of management and technical personnel.
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