China’s Port Acquisitions in Sri Lanka & Djibouti: Lessons on Chinese Developmental Financing for the Philippines

The rise of the People’s Republic of China (PRC) in the global economy has been one of the biggest contributors to the decline of global inequality until the early 2000s (Ho-fung 2015, 102). As an alternative foreign direct investor, Chinese companies have chosen to do business with developing countries previously ignored by other major investors (Bräutigam 2009, Gallagher & Porzecanski 2010). In addition, the presence of Chinese investors increases competition for key developmental projects in these areas, thus allowing host states to bargain more effectively for better economic terms and political returns (Camba 2016a, Ho-fung 2015). As a developmental aid donor, China has targeted key sectors that have been overlooked by the focus of Western aid policies on human rights, freedom of speech, and gender equality (Bräutigam 2009, 18, Nissanke & Söderberg 2011, 22). While assisting non-government organizations and host states in these crucial social domains has merits, the nancing of mega infrastructures and other strategic projects remains largely inaccessible to the developing world without foreign assistance.

 

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