February 1, 2011

Study Group on China’s Foreign Aid[Purpose]
The purpose of this Study Group is to consider/analyze China’s foreign aid
comprehensively from a future-oriented perspective, and to seek out possible areas forJapan-China development cooperation based on Japan’s experience in development
aid cooperation.

China’s presence in development cooperation (economic cooperation) has grown
rapidly in recent years.

China’s involvement in developing countries, above all its

assistance to non-democratic states, has at times been a cause for concern and alarmwithin the international community.

In addition, insufficient information is available on

China’s development aid because China is not a member of the Organization for
Economic Co-operation and Development (OECD).

Accordingly, discussions among

the international community on China’s foreign aid are frequently based on anecdotal
information, exacerbating the aforementioned concern and alarm.

The perspectives of Western countries have thus far been heavily reflected in theOECD, a central actor in the international aid community, and other internationalinstitutions.

As China’s aid expands, the relative weight of non-Western actors in thedonor community continues to rise, boosted also by South Korea’s attainment of official
membership on the OECD’s Development Assistance Committee (DAC) in January
2010.

This suggests the possibility of mutual stimulation between “Western” and“non-Western” trends in the international aid community.

Bearing this as well asJapan’s experiences as a latecomer donor country in mind, it is critical that we regard
Japan-China aid cooperation as a strategic element in the two countries’ relations.

In accordance with the above views, this project will actively pursue intellectual1

exchange between experts from both Japan and China well-versed in development aid
policyandwill(FY2010-2011).

conduct

survey/research

activities

overatwoyear

periodThis research will be of pioneering academic significance in Japan inascertaining the true status of China’s foreign aid, much of which remains hidden
behind an opaque veil.

At this same time, this research will likely contribute greatly toforming “soft assets” of value to Japan’s foreign policy.

[Overview of activities]
This Study Group will place its primary focus on drafting a “systematic layout” ofChina’s foreign aid.

There are five specific points to be covered:(1) Foreign aid philosophy and policies(2) Foreign aid schemes and structures(3) Evaluation of foreign aid record(4) Compatibility of international development aid regimes and China’s foreign aid(5) Potential for Japan-China development aid cooperation

The Study Group held its first meeting in August 2010, and has held a total of four
Study Group meetings (including presentations by visiting lecturers) as of January
2011.

We are also continuing to collect and translate relevant Chinese-language

materials as necessary, and to prepare basic bibliographies and information packets
on China’s foreign aid.

We plan to compile an interim report on the first fiscal year’s

results by the end of March 2011.

We intend to invite researchers from China during the next fiscal year.

2[Study Group members]Group Leader
SHIMOMURA Yasutami (Professor Emeritus, Hosei University)
Members
OHASHI Hideo (Professor, Senshu University)
INADA Juichi (Professor, Senshu University)
ONO Izumi (Professor, National Graduate Institute for Policy Studies)
KOBAYASHI Takaaki (Japan International Cooperation Agency [JICA]）WATANABE Shino (Associate Professor, Saitama University)

Member/Secretary:SUZUKI Takashi (Research Fellow, Japan Institute of International Affairs)3