Working with China in the Pacific: Prospects for Trilateral Cooperation

Denghua ZhangAustralian National University

Content

1. Chinese foreign aid in the Pacific

2. Growing Chinese trilateral aid cooperation

3. Observations of Chinese trilateral projects

4. Prospects for trilateral cooperation in agriculture

1. Chinese foreign aid in the Pacific

China’s official figure:

US$1.66 billion in 1950-2009 US$610 million in 2010-2012

US$490 million in concessional loans (2006 China-Pacific Economic and Development Cooperation Forum, Fiji)

US$1 billion in concessional loans (2013 Forum, Guangzhou)

Source: Made by author based on China’s two white papers on foreign aid

Aid in agriculture ： Not a main component of Chinese aid to the Pacific

Country Selected Agricultural projectsPapua New Guinea Kandep Agricultural research (grants, 2.2 million RMB, 1997-2008)

Lufa mushroom project (grants, 374,788 RMB, 1999-2005)Lufa (hybrid) dry rice trial cultivation (grants, 204,449 RMB, 2000-2003)

Fiji Chemical fertilizer donation (1175 tons, 2010)Mushroom demonstration farm (since 2014)

Vanuatu Rice and vegetable demonstration projects (2004)Construction of Vanuatu Agricultural College (grants, 30 million RMB,

2005) Agricultural equipment donation (2006)

Tonga Agricultural demonstration farm (since 2009)Samoa Agricultural demonstration farm (since 2010)

Federated States of Micronesia

Agricultural demonstration farm (since 1998)

2. Growing Chinese trilateral aid cooperation

UN agencies (UNDP/FAO/UNIDO)U.S.UKJapanAustraliaNew Zealand

3. China-U.S.-Timor-Leste trilateral agricultural project

Photo: Chinese embassy in Timor-Leste

7Photo: Australian DFAT

China-Australia-Papua New Guinea trilateral aid project

8Photo: Te Mato Vai website

China-New Zealand-Cook Islands trilateral aid project

Driving forces for Chinese trilateral cooperation

1) Engagement Imperative

2) Desire for Mutual Learning

3) Global image building

4) Requirement from recipient countries

Policy implications

. Focus on pilot projects

. Strengthen engagement

. Identify areas of natural partnership

. Start from low sensitive public welfare projects

Prospects for trilateral cooperation in agriculture

Quite possible as cooperation in agriculture is low sensitive and more technical-based, but conditions may apply:

. Political support from China and traditional donors

. Request from recipient countries

. Patience and closer coordination at all levels

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Thank you!