Strategies of a Rising Power: Chinese Economic Influence in Regional International Organizations

Abstract How does China use development finance to gain influence in international organizations? Leveraging the exogenous rotation of ASEAN and African Union Chairmanship, I estimate the effect of regional leadership on Chinese commitments. Results suggest that Chinese projects are politically motivated only when the lending and recipient entities are linked to the Chinese and host governments. Governments that assume the Chair received seven times more commitments from Chinese government agencies relative to non-Chair years, a $90 million increase for the average project. By contrast, there is no evidence to suggest that Chinese banks act as agents of Beijing. Moreover, I find a consistent null relationship between temporary UN Security Council status and Chinese finance, unlike established findings about Western donors, suggesting that China is deliberately seeking regional influence. These results underscore the importance of considering the specific actors involved in China’s economic statecraft.