Why Germany still sends billions in aid to China despite its economic dominance
Despite its economic prowess, China continues to be designated as a developing country by the Organisation for Economic Co-operation and Development (OECD). This classification, based on factors beyond GDP size, allows Germany to maintain development aid, a move that has sparked debate among German politicians. Germany, guided by a 1970 UN resolution, aims to allocate 0.7% of its GDP annually for development aid. However, it has often fallen short of this target without significant consequences. The legal basis for this aid is a non-binding UN resolution. In 2017, Germany provided €630 million in development aid to China, contributing to a total of nearly €10 billion since 1979. Development Minister Gerd Müller defends this aid, highlighting the need for global climate protection. Despite its nearly $13 trillion GDP and ambitious projects like Made in China 2025 and the Belt and Road initiative, China's internal disparities and structural challenges keep it in the developing country category. China's classification as a developing country, despite its economic power, allows Germany to continue providing development aid. This aid, totalling nearly €10 billion since 1979, is justified by Germany on environmental grounds. However, the decision to provide aid to such a powerful economy remains a contentious issue among German politicians.
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