Yuxin Hou, Manager China at GIFT, appeared on Phoenix TV to discuss China's recent change in policy regarding foreign aid.
sharing a panel with Mr. Zhang Jianping, Chairman of the International Cooperation Division at the NDRC Academy of Macroeconomic Research; and Ms. Zhang Haibing, Principle of the Institute of World Economy at the Shanghai Academy of International Studies, Yuxin highlighted some of the key aspects of China's new policy:
- Given the huge need for basic infrastructural investment in large parts of Asia and the impact it could have in accelerating economic growth, the establishment of the Asian Infrastructure Investment Bank (AIIB) is of great strategic importance and comes at an opportune time.
- Besides financial capital, appropriate technology, operational know-how, and scalable business models are also key. China's new policy shows a move-away from exclusively financial aid to more diverse support and capacity building.
- The new policy is a shift from ad-hoc country-to-country aid to a regional support scheme and from a focus on individual projects to improving the region's economic environment as a whole. This reflects a major transition in China's diplomatic strategy from bilateral thinking to a multilateral view.
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