China’s Role in the Global South: Emerging Trends in Aid Diplomacy

The manifestation of China's proactive diplomatic approach with the Global South has indicated a transition towards aid diplomacy with the ongoing geopolitical rivalry in international relations. China has possessed a considerable aptitude for recognizing global prospects to expand its influence and reap the benefits of endeavors undertaken by developing nations. The war in Ukraine has provided China with its initial indication that the countries comprising the Global South are not inclined to conform to Western geopolitical expectations.

China has taken the role of the "lender of last resort" to developing nations, engaging in 128 initiatives of financial assistance across 22 countries during the period spanning from 2020 to 2021. The recent diplomatic endeavors of China are strategically designed to construct a fresh narrative regarding its global position, with a particular emphasis on the Global South. Regarding financial assistance, China has allocated approximately $42 billion for foreign aid during the period from 2013 to 2018. This allocation encompassed various forms of financial support, such as grants, interest-free loans, and concessional loans. Approximately 45% of the allocation was directed toward Africa, while 37% was allocated to Asia in 2021. Additionally, China announced its intention to give $10 billion from its International Monetary Fund (IMF) reserves to support African countries. Also, The South-South Cooperation Assistance Fund was established by China in 2015, with a current contribution of $3 billion for these developing nations.

Chinese-led initiatives, including the Asian Infrastructure Investment Bank (AIIB), the Belt and Road Initiative (BRI), and the Global Development Initiative (GDI), are integral components of China's endeavors to reform the landscape of international politics. The Global South has emerged as the primary focus amidst the multitude of Chinese initiatives. Global South countries possess an understanding of the intricate nature of their interactions with China; however, their primary focus lies in addressing their economic predicaments. These developing nations realize that China can provide solutions without imposing any prerequisites, such as offering capital for infrastructure projects and making investments in the manufacturing and services sectors. In the initial quarter of 2023, China's trade with Africa amounted to $58.9 billion, which was nearly three times higher than the United States trade of $21.8 billion within the same timeframe. The Global Development and South-South Cooperation Fund, which was launched in June 2022 under the GDI, received an increased amount of $1 billion from China. Chinese lenders hold approximately 12% of the external debt in Africa, which amounts to a substantial value of $696 billion.

The Global Development Initiative (GDI) is a broader endeavor to establish China as a prominent figure in worldwide governance, providing public benefits within a distinct normative framework. This phenomenon is increasingly gaining momentum, particularly in Africa and the Middle East. However, participation in South-South cooperation is not only motivated by altruistic goals; instead, it supports China's efforts to increase its power and influence. China is disseminating its norms and practices through the transfer of knowledge and technology. In multilateral forums such as the United Nations, an increased number of countries aligning their votes with China serves to benefit it by mitigating negative perceptions and narratives, thus promoting a sense of balance in China’s favor. In 2022, China successfully concluded a series of agreements and transactions with Saudi Arabia, encompassing an investment valued at US$50 billion. The symbolic mediation between Iran and Saudi Arabia in the Middle East signifies the increasing influence of China in the region throughout the past decade. In addition, China recently proposed a "peace plan" aimed at resolving the ongoing war in Ukraine. Also, China perceives peace as intrinsically linked to food security, development, and communication in developing countries. An additional illustration pertains to the Chinese proposition of mediating between Israel and the Palestinians, wherein they seek to reutilize previous principles that have yielded no discernible achievements by other nations.

China’s approach towards the Global South illustrates the appeal of China's proactive diplomatic approach centered on collaboration. The aforementioned trend is notably observable in the South Asian region, where China has made substantial investments in Sri Lanka and Pakistan. As an illustration, Sri Lanka is indebted to China for $7.4 billion, which is approximately 20% of the nation's total public debt. Additionally, China has been expanding its influence in Nepal and Bangladesh. China recognizes the significant geopolitical significance and promising potential of South Asia's expanding economy. However, it encounters formidable competition from India and Japan in this regard. Also, a sentiment of discontent is prevalent in numerous economically disadvantaged nations towards the governments of the US, Europe, and other Western regions regarding their perception of Ukraine's invasion by Russia as one of the most severe crises. This is about the Western nation's apparent emphasis on the plight of Ukrainians and willingness to accept Ukrainian refugees while at the same time ignoring the struggles experienced as a result of conflicts, famines, and other disasters in the developing regions. Although China has appeared as their savior, but it faces significant challenges in its quest for development. The economy is currently faced with difficulties like rising debt and pessimistic growth predictions for the future. Additionally, the Chinese leadership is forming new alliances and economic ties with the developing world as a result of their growing perception of the United States and its allies as rivals.

China's influence within the developing world may not be universally significant across all issues due to the changing geopolitical landscape, which is characterized by increasing multipolarity. India and Turkey hold the perspective that the future is not characterized by a bipolar paradigm. On the contrary, there is anticipation for a trajectory similar to that of China, leading toward a multifaceted and multipolar future. The concept of democracy continues to possess significant allure in the countries of the Global South. India, a country that perceives itself as a representative of the Global South, has expressed disapproval towards China's prioritization of safeguarding banks during debt restructurings for other countries in South Asia. But China takes a more proactive and direct stance when addressing global challenges. This approach serves as a means for China to assert its diplomatic strategies and global governance concepts as superior to the prevailing liberal, rules-based international system.

In concluding remarks, China is leveraging its expanding influence within the Global South, even in the United Nations, to advance its initiatives and propagate its guiding principles. It is imperative for the US and Western allies to effectively respond to China's objectives by intensifying involvement in these multilateral organizations and strengthening governance structures, thereby guaranteeing the continued significance of rules-based policies for the international system.

Author’s Bio and Photo
Aishwarya Sanjukta Roy Proma is a Research Associate at the BRAC Institute of Governance and Development (BIGD). She is a research analyst in security studies. She obtained her Master's and Bachelor's in International Relations from the University of Dhaka, Bangladesh. She can be reached at ash77662@gmail.com.

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