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Main Industrial Development Issues and Challenges

Uncertain role as both aid recipient and donor

Since China’s economic reform and opening in the 1970s, the world has given the country aid and investment money, over US$ 500 billion in total. In recent years, however, China has increased its own assistance to other developing countries. From 2000-2005, China’s outgoing FDI quadrupled to US$11.3 billion. In 2005, China stopped receiving food aid from WFP – in the same year, China was actually ranked as the world’s third largest food donor. In Africa, China has approved a development fund of US$ 5 billion and a line of credit of US$ 2 billion. As China’s footprint on the rest of the world grows, determining its role and responsibilities towards other developing countries becomes an increasingly important challenge.