US-China Development Cooperation: New Bilateral Dynamics?

Abstract

In recent years, the US-China relationship has been marked by competition. The two powers have been wrestling in the South China Sea and more recently in a trade war, attracting global attention. The development sector is a less well known aspect in bilateral relations. China’s rise as the largest emerging donor is challenging the traditional aid regime led by the United States and other developed nations. Chinese aid-spending has increased dramatically since 2000. Not being a member of the OECD Development Assistance Committee, China is not bound by the requirements of the institution, and insists on ‘common but differentiated responsibility.’ Beijing has become overtly impatient with the slow pace in global governance reform to elevate China’s status and instead established the BRICS New Development Bank, the Asian Infrastructure Investment Bank, and the Belt and Road Initiative.