Image Courtesy: CIDCA Official
Executive Summary
As directed by the Ministry of External Affairs for the Chennai Centre for China Studies, our team conducts quarterly reviews of developments related to CIDCA and China's broader activities.
The first meeting of the China-Indian Ocean Region Forum on Development Cooperation, held in Kunming on November 21, 2022, was organised by the China International Development Cooperation Agency (CIDCA) and the Yunnan Provincial Government. The forum, themed "Shared Development: Theory and Practise from the Perspective of the Blue Economy," sought to enhance regional cooperation in the Indian Ocean, focusing on sustainable marine development and blue economy initiatives. CIDCA, established in 2018, plays a key role in coordinating China’s foreign aid policies and development strategies. The forum brought together 19 countries, highlighting common objectives such as combating climate change, marine pollution, and promoting multilateralism. The event aligns with China's Global Development Initiative (GDI) and overlaps with the goals of other regional organisations like IORA, BIMSTEC, and IONS, aiming to strengthen South-South cooperation and advance the United Nations 2030 Agenda for Sustainable Development. Key outcomes include establishing a marine disaster prevention mechanism and a blue economy think tank network for the region.
In April 2018, China established the China International Development Cooperation Agency (CIDCA), marking a pivotal shift in its foreign aid management aimed at improving coordination and impact. CIDCA, operating directly under the State Council and the supervision of State Councillor Wang Yi, has strengthened the role of the Ministry of Foreign Affairs (MFA) in China's aid policy. This move reflects China's more proactive diplomacy under President Xi Jinping, using aid strategically for diplomatic purposes, such as its support to Pacific nations that switched allegiance from Taiwan to China. CIDCA also aligns aid initiatives with the Belt and Road Initiative (BRI), which remains central to China's global outreach.
Despite CIDCA’s creation, China’s aid framework continues to emphasise South-South cooperation, differentiating itself from traditional aid models by positioning itself as a developing nation assisting other developing countries. Key initiatives under CIDCA include the Global Development Promotion Centre, the Emergency Humanitarian Relief, and the 2030 Agenda for Sustainable Development. Recent collaborations with international bodies, such as the United Nations Industrial Development Organization (UNIDO), highlight China's commitment to global development through its new Global Development Initiative (GDI).
The second report also covers China’s use of financial bailouts through BRI, with over $240 billion in loans to countries in debt distress. China’s lending practices have become a significant tool in its geopolitical strategy, despite criticism regarding the high interest rates, short repayment periods, and lack of transparency in loan agreements. Notably, middle-income countries like Argentina, Pakistan, and Egypt have been the primary recipients of China’s bailout loans, reflecting the geopolitical significance of China’s aid strategy.
The third report discusses about China 's reasons for hosting the China-Indian Ocean Region Forum on Development Cooperation by citing its role as an UN member and its obligation to promote 2030 SDG goals. In addition to that it intends to host this forum as a dialogue partner of the IORA. Most importantly, through this forum, China seeks to realise its Belt and Road Initiative (BRI) and Maritime Silk Road (MSR) goals. Given that the Chinese objectives as outlined above have implications across the world especially India, the paper attempts to assess the achievements of the first China Indian Ocean Region Forum (CIORF) and imparts the deliverables of the Second China Indian Ocean Region Forum. Further, the paper examines the implications of the China hosted forum across the world including Southeast Asia, Africa, Pacific Island States, South Asia with a special focus on India.
The global landscape of diplomacy, aid, and development cooperation is undergoing dynamic shifts, with China emerging as a prominent player. China's multi dimensional approach, encapsulated in initiatives such as the Belt and Road Initiative (BRI), Global Cultural Initiative (GCI), Global Security Initiative (GSI), and Global Development Initiative (GDI), highlights its commitment to build bilateral relations with countries across the world. This report provides a comprehensive overview of China's engagement in various countries and regions, highlighting key development activities, diplomatic agreements, aid programs, and international meetings. China's involvement spans diverse sectors and geographies, from agricultural assistance in Fiji to infrastructure projects in Cambodia, and medical diplomacy in Zimbabwe to strategic partnerships with Tunisia and Micronesia. Diplomatic engagements with countries like the UAE, Egypt, Equatorial Guinea, and Kazakhstan further illustrate China's efforts to deepen bilateral relations and strengthen global cooperation. Concurrently, the Indian Navy's active role in the Indian Ocean Region (IOR) through maritime security operations and strategic initiatives like the Security and Growth for All in the Region (SAGAR) demonstrates India's potential as a key security provider in the Indo-Pacific. India's participation in the Indo-Pacific Economic Framework (IPEF) and collaborations with countries like the U.S., France, Japan, and Australia underscore its strategic positioning. Additionally, China's influence operations, including overseas police stations and talent recruitment programs, reflect its efforts to expand its global footprint and shape international narratives. As China maintains its assertive global posture, countries like India are enhancing their strategic and economic responses to balance regional stability and growth. The fourth report offers insights into the multifaceted nature of China's global engagement and its evolving role in shaping its position in contemporary international relations and development cooperation.
Read the full report at this link:
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