There was a time when Australia gave a helping hand to its Asian neighbors, no matter the amount. For the first time, however, China has emerged as the biggest donor in the Asia-Pacific region. The country to benefit from this donation is Papua New Guinea.
Usually, Australia has been the most active donor in the Pacific. However, China-in line with eyeing a more active position in the Pacific region has committed to giving more help in the region, in line with their "Belt and Road Initiative." In 2017, China started to allocate bigger budgets in the region, amounting to $4 billion. In contrast, Australia has planned at least $815 million in aid to their Pacific neighbors.
It is a far cry from China's spending in 2014. Still, The Guardian clarifies the country was already eyeing a bigger role in helping Asian countries. It was the fourth-largest donor that year, only behind Australia, the US, and New Zealand, respectively. The US, however, cut their spending in Asia, and this presented an opportunity for China to overtake the US and climb from fourth to second and, eventually, become first.
Asia isn't the only region that China is looking to spend on.
Africa has long been on the Asian country's sights and, in recent years, it has invested hugely in the region in terms of country-to-country deals, as well as economic investments in the form of companies. This has always been a topic of debate; Brookings' study points out that many countries have started to question why China has been spending heavily on the continent.
China has spent anywhere from $2.17 million in 2000 to $3.17 billion 11 years later, in 2011. Like how it has been doing recently, aid has been the main tool in China's diplomacy. Giving this aid to Africa makes sense. Africa is a vital player in China's "Belt and Road" plan and this is a step towards the right direction for the country.
All points considered, the country is still behind Australia in terms of historical spending. To date, Australia has been doing it for a long time, investing $6.58 billion in aid. In contrast, China's recent shift in spending on the Asia-Pacific region has yielded only $1.26 billion in aid in the region.
