China's Development Cooperation: The Case Study of Angola

Development cooperation is a broad and intricate topic that has been extensively explored through various theories and models. Traditional donor countries, multilateral, and international organizations have followed their own models to contribute to development cooperation, driven by different motivations and policies. However, since the foundation of the People’s Republic in 1949, China has been a significant contributor to international development cooperation, providing tools, finances, and accessible conditions to assist other countries in combating underdevelopment and poverty. This has led to radical changes in the international order and posed a challenge to historical superpowers, which were the main sources of financial aid. Nonetheless, China has faced criticism from Western countries for its model, which involves expanded aid and cooperation resources. China has promoted a “south-south cooperation” model, wherein developing countries encourage development among each other based on principles of non-interference, equity, and mutual benefit. China’s development cooperation, as outlined in its three White Papers released by the State Council in 2011, 2014, and 2021, primarily targets Africa and Southeast Asia, especially countries participating in the Belt and Road Initiative. Among them, Angola represents one of the most compelling case studies. According to the BU: China Overseas Development Finance Database, China has provided US$32 billion through economic investments, infrastructure development, and trade partnerships across various sectors. The development cooperation between China and Angola is based on an investment model known as the “Angola Mode”, introduced in 2002 to facilitate post-war reconstruction in Angola. This model leverages the interdependence between the economies of the two countries: the Chinese government provides credit lines with low interest rates, without imposing political conditions, to Chinese national enterprises operating in the construction sector and engaged in development projects in Angola. However, this model is believed to be unsustainable for Angola’s public external debt. China is accused of engaging in “debt-trap diplomacy” in Angola, as well as in many other countries, using its power to exert influence over heavily indebted nations.