Why Germany should continue its development cooperation with China

Kimsey Zajac and Lennart Kaplan

No 159, Kiel Policy Brief from Kiel Institute for the World Economy (IfW Kiel)

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.

Keywords: Development cooperation; China; ODA; Entwicklungszusammenarbeit (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-cna
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkpb:159

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