Soft Power? China Has Plenty
China is a failure when it comes to soft power - or so we're told. A giant in the hard-power leagues of money and military strength, China is often portrayed as a minnow swimming against the global tide of ideas and perceptions. Unloved and misunderstood, the country can only get things done through the use of carrots and sticks, not by capitalizing on the warm sentiments of others. Foreigners, in the end, pay heed to China only because they have to, not because they want to.
Chinese “aid” is a lightning rod for criticism. Policy-makers, journalists, and public intellectuals claim that Beijing uses its largesse to cement alliances with political leaders, secure access to natural resources, and create exclusive commercial opportunities for Chinese firms—all at the expense of citizens living in developing countries. We argue that much of the controversy about Chinese “aid” stems from a failure to distinguish between China's Official Development Assistance (ODA) and more commercially oriented sources and types of state financing. Using a new database on China's official financing commitments to Africa from 2000 to 2013, we find that the allocation of Chinese ODA is driven primarily by foreign policy considerations, while economic interests better explain the distribution of less concessional flows. These results highlight the need for better measures of an increasingly diverse set of non-Western financial activities.