Engaging China on Global Development

China is currently undergoing an evolution in its approach to development assistance and cooperation. The country continues to expand its contributions of resources, expertise and engagement on international development issues. As a result, the Chinese Government is continually reflecting on emerging challenges; the structure, mechanisms and partnerships needed to advance development priorities abroad; and new means of financing international development efforts.

Alex Thier addresses an audience member question during a China International Development Research Network (CIDRN) speaking engagement. / Maria Rendon, U.S. Department of State

Recognizing the importance of frank, face-to-face bilateral dialogue to discuss these trends,  USAID held the inaugural U.S.-China Global Development Dialogue in Beijing on April 29.

China’s ongoing economic, social, political and environmental transformation will have a significant bearing on its domestic and global positions on related issues over the next 10 to 15 years. Despite progress, China still accounts for more than 10 percent of the world population living in extreme poverty – yet also sits on the world’s largest foreign cash reserves, some $4 trillion. Indeed, while we were in Beijing, the World Bank revised the purchasing power parity (PPP) exchange rates, which boosted Chinese GDP by more than 20 percent, putting it even closer to the size of the U.S. economy by that measure.

Alex Thier poses with Prof. Li Xiaoyun of China Agriculture University. Prof. Li Xiaoyun co-chaired and commented during the CIDRN public event series on China and international development where Thier was a featured speaker. / Maria Rendon, U.S. Department of State

China is an important partner with developed and developing economies in negotiations around the post-2015 development agenda, climate change, financing for development and other global issues.

In the official U.S.-China global development dialogue, the Chinese exhibited a strong desire to engage with the U.S. Government on global development issues related both to broad international policy as well as practical elements of implementation.

The country is proud of the role it has played in achieving the current Millennium Development Goal of halving the proportion of its own people living in extreme poverty—over the last two decades China has helped lift nearly 600 million of its citizens out of extreme poverty—but still sees much need for continued domestic progress. We found strong agreement with the Chinese on the goal of ending extreme poverty  and common ground on increasing development cooperation effectiveness through internationally agreed on principles like the Global Partnership for Effective Development Cooperation.

USAID, like other government and private donors, has started small scale, practical cooperation with China in third countries (“trilateral cooperation”). For example, the United States and China recently launched an agriculture partnership in East Timor that is intended to improve the production of income-generating crops to enhance food security and nutrition. The first harvest was in March, and now more than 52 participating East Timorese farmers are seeing the benefits of modern farming techniques.

A U.S.-China partnership is helping enhance food security and nutrition in Timor-Leste / Charles Rice for USAID

Discussions with a variety of Chinese universities, think tanks, foundations, and private sector and civil society organizations also demonstrate a growing interest and participation in development policy and implementation.

Overall, the first U.S.-China Global Development Dialogue was an important opportunity to advance our mutual interest in development policy dialogue, strengthening cooperation and enhancing policy coherence in partner countries. The next set of global development goals—including ending extreme poverty and sharing a sustainable global commons and economy—will require a concerted effort with all partners, China key among them.