Download China’s Foreign Aid and Investment Diplomacy, Volume II: by John F. Copper PDF

By John F. Copper

This three-volume paintings is the 1st entire research of China's overseas reduction and funding international relations to track its evolution because the PRC's founding in 1949. quantity II presents an research of China's international reduction and funding to nations and local companies in Asia from 1950 to the current day, studying overseas coverage objectives.

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Extra resources for China’s Foreign Aid and Investment Diplomacy, Volume II: History and Practice in Asia, 1950-Present

Sample text

Indonesia sought better relations Aid and Investment Diplomacy in Southeast Asia ● 33 with China in the context of fast-improving ASEAN-China relations. 296 In 1997 the Asian financial crisis gave China a nice opportunity to help Indonesia and win support from the government and the people while improving its image there and in neighboring countries. Indonesia’s financial sector was weak, in part precipitating the crisis there. The International Monetary Fund (IMF) came to the rescue, but its tight credit and higher interest rates policies precipitated bankruptcies and caused capital to flee the country, both of which created panic.

In any event the funding helped ingratiate China with President Sukarno. 287 Unlike its aid to Communist countries and a number of non-Communist nations at the time, all of China’s foreign aid to Indonesia was given in the 32 ● China’s Foreign Aid and Investment Diplomacy, Volume II form of loans rather than grants. Probably Chinese leaders calculated they could not compete with Soviet and Western aid to Indonesia and lacked complementary means to influence the Indonesian government. 288 In 1961, China promised Indonesia $30 million more aid, again in the form of a loan.

292 In that milieu China’s aid to Indonesia ceased. Relations remained strained for more than a decade. In the 1980s, China renewed its efforts to improve relations with Indonesia. In 1985, China and Indonesia reestablished trade that had been cut in 1967. 293Formal relations, however, were not reestablished. In 1990, Premier Li Peng visited Indonesia and President Suharto visited China. 294 Soon after the two countries established formal diplomatic relations. 295 At the time China wanted to buy Indonesian oil and sought Indonesia’s support (or at least restrained opposition) for Chinese claims in the South China Sea and Beijing’s one-China policy.

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