China’s Foreign Aid and Investment Diplomacy, Volume II: History and Practice in Asia, 1950-Present

281 Pages·2016·2.68 MB·English

by  John F. Copper (auth.)

China’s Foreign Aid and Investment
Diplomacy, Volume II

China’s Foreign Aid and
Investment Diplomacy,
Volume II
History and Practice in Asia,
1950–Present
John F. Copper
CHINA’S FOREIGN AID AND INVESTMENT DIPLOMACY, VOLUME II
Copyright © John F. Copper 2016
Softcover reprint of the hardcover 1st edition 2016 978-1-137-55182-5
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First published 2016 by
PALGRAVE MACMILLAN
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work in accordance with the Copyright, Designs and Patents Act 1988.
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Basingstoke, Hampshire, RG21 6XS.
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ISBN: 978-1-349-55593-2
E-PDF ISBN: 978–1–137–53272–5
DOI: 10.1057/9781137532725
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Macmillan®, a division of Macmillan Publishers Limited, registered in
England, company number 785998, of Houndmills, Basingstoke,
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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 9781137551818 (v. 1 : hardback) |
ISBN9781137551832
(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 II xi
Chapter 1 China’s Foreign Aid and Investment Diplomacy in
Southeast Asia 1
Chapter 2 China’s Foreign Aid and Investment Diplomacy in
South Asia 49
Chapter 3 China’s Foreign Aid and Investment Diplomacy in
Northeast and Central Asia 93
Chapter 4 Using Aid and Investment Diplomacy to Isolate Taiwan 141
Notes 171
Selected Bibliography for Volume II 243
Index 257

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 calling much of it for-
eign 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 provided succor for their
development. It also expanded China’s external influence. Not by accident
China’s external financial help became a major factor in its global rise.