ABSTRACT
This chapter examines the historical trajectory of Chinese aid in the region and its wider implications for Southeast Asia. It provides two topical issues surrounding Chinese foreign aid with reference to Southeast Asia: its difference to Organization of Economic Cooperation and Development (OECD) aid and concerns regarding good governance. The chapter explores the similarities and differences between Chinese and OECD aid through assessing the delivery mode, definitions, modalities and discourses. The Chinese usually pay for part of their oil and other resources in infrastructure, which means there is less free-floating cash for unscrupulous diversion. According to the Chinese State Council, Chinese aid is mainly delivered bilaterally, through forms such as grants, interest-free loans and concessional loans, which are divided into eight categories, ranging from financial and technical assistance for key investments through to medical aid. The inadequacy of information regarding foreign aid is attributed to the absence of transparency and good governance in Chinese overseas aid activities.
