【By Zhang Jingjuan, Observer News】With the Trump administration and other Western countries significantly cutting foreign aid, Australia has become restless.

On July 20, the Lowy Institute, an Australian think tank, in its annual report deliberately distorted China's normal development cooperation with Southeast Asia as "expanding influence," sounding alarmist claims that "the reduction of U.S. and Western aid will boost China's influence in the region."

This institute based in Sydney claimed that Southeast Asia is at a "period of uncertainty" in its development trajectory, facing both the cutbacks in Western official development assistance and the "highly punitive" U.S. trade tariffs. "The reduction of Western aid may allow China to play a greater role, and the influence of other Asian aid donors will also rise," it said.

Such claims have been repeatedly refuted by China. China's cooperation with Southeast Asian countries is based on mutual benefit and friendship, not transactional logic. China provides foreign aid without any political conditions, does not interfere in the internal affairs of recipient countries, and fully respects the right of recipient countries to choose their own development path and model.

The annual report shows that official development assistance flowing into Southeast Asia, including grants, low-interest loans, and other loans, increased slightly from 26.5 billion U.S. dollars in 2022 to 29 billion U.S. dollars in 2023, but still significantly lower than the pre-pandemic average of 33 billion U.S. dollars per year.

In 2024, France, Germany, the Netherlands, Sweden, Finland, Austria, Italy, and the European Union announced that they would cut 17.2 billion U.S. dollars in foreign aid between 2025 and 2029. Meanwhile, the Trump administration decided to suspend nearly 60 billion U.S. dollars in official development assistance funding starting in early 2025, which almost accounts for most of the U.S. overseas aid program. The UK followed suit, announcing annual cuts of about 7.6 billion U.S. dollars in official development assistance, redirecting government funds toward the defense sector.

The report predicts that by 2026, the total amount of official development assistance flowing into Southeast Asia will decrease by more than 2 billion U.S. dollars, returning to about 26.5 billion U.S. dollars. The report pointed out that these cuts will severely impact Southeast Asia. "Poorer countries relying on bilateral aid funds, as well as key projects in social sectors such as health, education, and civil society support, may be the biggest losers," it said.

The Lowy Institute stated that official development assistance in the region has mostly flowed to high-income countries. Low-income countries such as East Timor, Cambodia, Laos, and Myanmar are left behind. Although the poverty rate in these countries has risen in recent years, compared to high-income countries in the region, they rely more on grants and preferential loans. The think tank warned that if the current trend continues, this gap will further solidify, harming the region's long-term stability, fairness, and resilience.

The report deliberately exaggerated the "geographic shift of development funding in Southeast Asia toward the East," especially towards China, as well as Japan and South Korea. "As Western development aid decreases, the relative importance of China as a regional development participant will increase. China still has a large number of infrastructure projects to advance and continues to show willingness to undertake major projects," it said.

The report stated that in 2023, China's development financing to Southeast Asia increased by 1.6 billion U.S. dollars to 4.9 billion U.S. dollars compared to the previous year. This growth mainly resulted from funding allocated to large economies such as Indonesia and Malaysia, corresponding to the progress of major infrastructure projects such as the Jakarta-Bandung High-Speed Railway and the East Coast Rail Link in Malaysia.

Southeast Asian countries are important partners in building the "Belt and Road Initiative." A large number of cooperative projects, such as the China-Laos Railway, the Jakarta-Bandung High-Speed Railway, and the China-Malaysia "Two Countries, Two Parks" initiative, have accelerated regional growth and benefited the people of the region.

Despite many challenges, China still has a large number of infrastructure projects to advance. In 2023, China finalized the restart of the Kyaukpyu Deep Water Port Project under the China-Myanmar Economic Corridor framework. China's commitment to infrastructure development in Southeast Asia increased nearly fourfold from 2.5 billion U.S. dollars in 2022 to about 10 billion U.S. dollars.

By contrast, alternative infrastructure projects proposed by the West have not materialized in recent years.

The report pointed out that while the West has pledged support for the region's clean energy transition, it has not translated into more actual projects. Considering that coal-dependent Southeast Asia is one of the main sources of increasing carbon emissions, this issue has raised global concerns.

On January 26, 2024, a train from Bangkok to Ayutthaya in Thailand was photographed from the window showing the construction of the China-Thailand Railway (Bangkok-Nong Khai High-Speed Railway), with the bridge piers under construction. Visual China

It should be clearly stated that China's participation in Southeast Asia's development is not a so-called "competition" with the West in the region.

In recent years, China has continuously increased its aid efforts. Cooperation with Southeast Asian countries is based on mutual benefit and friendship rather than transactional logic, becoming a strong support and reliable partner for Southeast Asia's economic growth.

Survey results on the attitudes of Southeast Asian countries show that in 2024, for the first time, over half (50.5%) of the Southeast Asian public regarded China rather than the United States as their preferred strategic partner. Most ASEAN countries expressed their recognition of China's vision of a community with a shared future for mankind.

Regarding China's infrastructure investment in Southeast Asia, Lin Jian, spokesperson for the Ministry of Foreign Affairs, once stated at a regular press conference that Southeast Asia is one of the initial regions for the "Belt and Road Initiative" and a key area for cooperation. The initiative has achieved remarkable results locally, genuinely benefiting the people of all countries. China will continue to implement the eight actions supporting high-quality "Belt and Road" cooperation, guided by the principles of consultation, joint contribution, and shared benefits, openness, greenness, integrity, high standards, and people-centered sustainable development. It will work with Belt and Road countries, including those in Southeast Asia, to promote higher quality and higher level cooperation, helping each country's modernization process.

Li Ming, spokesperson for the National International Development Cooperation Agency, noted earlier this year that the U.S. foreign aid policy has undergone significant adjustments, cutting over 90% of aid projects. This adjustment violates the relevant commitments and obligations made by the U.S. within the UN framework, going against the tide and losing popular support.

Li Ming stated that some developed countries have seen a continuous decline in their development aid in recent years, and China is closely monitoring related adjustments and changes that cause difficulties and disruptions for recipient countries, fully understanding the anxiety and helplessness of recipient countries.

"Building a better world through self-serving actions is impossible, and unilateralism is a breeding ground for global risks," Li Ming said. He emphasized that major countries should have the image of major countries, bear the international obligations they should shoulder, and fulfill their responsibilities as major powers. They cannot act inconsistently, be profit-driven, or bully others because of strength.

He pointed out that in a world full of global challenges, some countries' counterproductive foreign policies, and the approaching regression of the UN Sustainable Development Agenda, China's stable development aid policy and sustained actions have injected strong certainty into an uncertain world.

Li Ming emphasized that China's commitment to increasing resources for global development cooperation will not change, nor will the principle of not interfering in internal affairs, not attaching any political conditions, or making empty promises. The positioning of aid will not change, and the stance of equal consultation and win-win cooperation with development partners in the North and South will not change.

This article is an exclusive piece by Observer News, and it cannot be reprinted without permission.

Original: https://www.toutiao.com/article/7529402399027364392/

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