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Why Germany should continue its development cooperation with China

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  • Zajac, Kimsey
  • Kaplan, Lennart

Abstract

Although bilateral development cooperation officially ended in 2009, China is still the third largest recipient of Germany's official development assistance, a fact that often causes frequent public confusion. The authors argue that German payments to China are not "traditional aid" in the sense of poverty reduction through public funds. Rather, payments to China include profitable promotional loans and serve technical cooperation. In recent years, German-Chinese relations have shifted from development cooperation to mutually profitable international cooperation on equal footing. A premature exit from German-Chinese "development" cooperation would therefore be detrimental to both sides. The authors recommend that the German government should create more transparency about the nature of development assistance to China and thus highlight the "win-win" situation in German-Chinese cooperation.

Suggested Citation

  • Zajac, Kimsey & Kaplan, Lennart, 2021. "Why Germany should continue its development cooperation with China," Kiel Policy Brief 159, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkpb:159
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    References listed on IDEAS

    as
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    2. Zhu Liu & Dabo Guan & Douglas Crawford-Brown & Qiang Zhang & Kebin He & Jianguo Liu, 2013. "A low-carbon road map for China," Nature, Nature, vol. 500(7461), pages 143-145, August.
    3. Reed,Tristan & Trubetskoy,Alexandr, 2019. "Assessing the Value of Market Access from Belt and Road Projects," Policy Research Working Paper Series 8815, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Development cooperation; China; ODA; Entwicklungszusammenarbeit;
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