China Leads Aid Donors in Southeast Asia as Competition Grows

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China has focused its disbursements on neighbors Laos and Cambodia, as well as Southeast Asia’s largest economy, Indonesia, according to the Lowy Institute. Photo: Bloomberg

(Bloomberg) — China is Southeast Asia’s leading development financier, but is facing rising competition for regional sway, according to Lowy Institute research.

The region received about $28 billion a year in official development finance between 2015 and 2021, with around $5.5 billion coming annually from China, the world’s second-biggest economy, according to the Southeast Asia Aid Map released by the Australian think tank on Sunday. Still, Beijing’s financial assistance has been shrinking in recent years as key regional players like Japan and South Korea step up funding.